GoGold Resources Progress on Los Ricos Feasibility Study

Update on GoGold Resources' Los Ricos Feasibility Study

GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF), a growing player in the silver and gold production sector, is excited to share the latest updates regarding their Los Ricos projects. With a keen focus on both the Los Ricos South (LRS) and Los Ricos North (LRN), the company is nearing the completion of a comprehensive definitive feasibility study (DFS) for the LRS project.

Shifting to Underground Mining

The journey of the DFS has brought significant changes, particularly in the mine planning approach. GoGold has decided to adopt an underground mining strategy that capitalizes on the large widths of mineralization found in the deposit. This approach involves re-engineering the mine plan to support an underground operation slated to last for 12 years, with a focus on an efficient mining method that enables a throughput of 2,000 tonnes per day.

“By opting for an underground-only mining model, we anticipate reduced surface disturbance, simplifying permitting processes significantly. Unlike open-pit permits, which are currently facing potential legislative obstacles in Mexico, underground mine permits have proven to be more straightforward,” explained Brad Langille, the President and CEO of GoGold. The geological team is also shifting their efforts to model the LRN deposit for similar underground operations.

Milestones in the Feasibility Study

As the DFS for the LRS nears completion, several key elements have already been finalized. The mining operations will primarily rely on contract mining, and in-house management will oversee contractor activities, ensuring a streamlined execution of the project.

Extensive metallurgical tests have been conducted on representative drill core samples from the Los Ricos South deposits. The results validate core components of the processing strategy and confirm operational effectiveness across various stages of the process, including crushing, grinding, and cyanide leaching. The goal is to produce high-grade silver and gold concentrates, alongside a byproduct of copper precipitate.

Environmental and Power Considerations

One of the vital components of the DFS involves ensuring an efficient and environmentally sustainable mining operation. GoGold is currently finalizing an agreement with the Comision Federal de Electricidad (CFE) to secure a reliable power supply from the nearby La Yesca hydroelectric dam, ensuring that the LRS has access to the necessary electricity for its operations.

Additionally, the company has successfully secured land rights essential for establishing the mill and processing facilities for LRS. Agreements with local farmers ensure proper compensation and community involvement in development efforts.

Design of the Processing Mill

The design phase of the processing mill is almost at the finish line, with 90% completion on the design and engineering work. The mill will feature conventional crushing and grinding processes, paired with cyanide tank leaching. There will also be a focus on water recycling through advanced filtration systems, coupled with a SART circuit designed to recycle cyanide for further processing while generating a valuable copper sulfide product.

Progress at Los Ricos North

At Los Ricos North, GoGold's geological team is actively relogging drill holes with the intention of transitioning the existing mine plan, previously designed for open-pit extraction, into an underground mining strategy akin to LRS. The management aims to unveil a revised Preliminary Economic Assessment (PEA) or Preliminary Feasibility Study (PFS) for LRN in the near future.

About GoGold Resources

GoGold Resources (TSX: GGD) is dedicated to effectively operating, developing, exploring, and acquiring top-notch silver and gold projects, predominantly in Mexico. Currently, the company oversees the Parral tailings operation and the Los Ricos projects located in the heart of Mexico. Through strategic development, GoGold is on a mission to form a robust portfolio featuring low-cost, high-margin mining endeavors.

Frequently Asked Questions

What projects is GoGold currently focusing on?

GoGold is primarily focused on the Los Ricos South and Los Ricos North projects as part of their feasibility studies.

What mining strategy is GoGold implementing at Los Ricos?

The company is implementing an underground mining strategy aimed at maximizing mineral recovery while minimizing surface impact.

How does GoGold ensure environmental sustainability?

GoGold is using underground paste backfill methods to reduce surface disturbance and is focusing on water recycling in its milling operations.

What is the estimated mine life for the Los Ricos project?

The current mine plan aims for a duration of 12 years for underground mining at the Los Ricos South project.

What are GoGold's operational objectives?

GoGold aims to develop efficient mining operations that provide high-margin production of silver and gold while ensuring community engagement and environmental stewardship.

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