GoGold Resources releases assays from new drilling program in Mexico

Halifax-based GoGold Resources (TSX: GGD) has released results for the initial holes drilled at its Mololoa target, part of the company’s Los Ricos North exploration project in Mexico’s Jalisco state, about 100 km northwest of the city of Guadalajara.

The Mololoa target is about 1 km north of the project’s El Favor deposit and the company believes it could be an easterly extension of its Casados deposit.

Highlights from the assays included hole LRGM-21-006, which returned 6.1 metres grading 454.7 grams silver per tonne and 0.95 gram gold per tonne (525.7 grams silver-equivalent per tonne) starting from 109.7 metres downhole. The interval included 1.0 metre grading 1,660 grams silver per tonne and 3.95 grams gold per tonne (1,956.3 grams per tonne silver-equivalent) from 111.8 metres.

Another hole, LRGM-21-008, returned 11.0 metres grading 276.3 grams silver per tonne and 0.83 gram gold per tonne (338.5 grams per tonne silver-equivalent) from 18.1 metres downhole. The intercept included 0.6 metre grading 1,180.0 grams silver per tonne and 3.63 grams gold per tonne (1,452.3 grams per tonne silver-equivalent).

“These are the first holes drilled at Mololoa which show a vein structure with high grades of silver and gold that we believe will add additional ounces and grade to the upcoming initial resource at Los Ricos North,” Brad Langille, GoGold Resources’ president and CEO, said in a news release. “We encountered numerous old workings while drilling Mololoa and will attempt to drill below the level of the old workings, so we are able to see the full extent of the intact mineralized zone.”

The company has drilled 27 holes at Mololoa so far this year as part of its 2021 exploration program. GoGold has nine rigs turning across the Los Ricos North project and has completed 100,000 metres of drilling at the site as part of the current exploration program. The company now plans to embark on another 100,000 metres of drilling over the next 12 months at Los Ricos North, which it says is one of the largest drill programs in the country.

GoGold has identified 100 targets at the project, including El Favor, La Trini, Casados and El Orito.

The company expects to release its first resource estimate for Los Ricos North in November and will continue drilling for new ounces over the next year, at which point it plans to complete an update to that resource. According to Langille, these results could help reinforce the company’s belief that Los Ricos North is a large, mineralized system.

In addition to its Los Ricos North project, the company is exploring its Los Ricos South project, about 25 km away. The company completed a preliminary economic estimate (PEA) on Los Ricos South in January 2020, outlining measured and indicated resources of 10 million tonnes grading 199 grams silver-equivalent per tonne for 63.7 million silver-equivalent ounces. Inferred resources stand at 3.3 million tonnes grading 190 grams silver-equivalent per tonne for 19.9 million ounces. The PEA on Los Ricos South forecast a net present value at a 5% discount rate of US$295 million.

There are several historical mines at Los Ricos South including El Abra, El Troce, San Juan, and Rascadero. The company also has a number of targets including Cerro Colorado, Las Lamas and East Vein.

At presstime GoGold was trading at $2.71 within a 52-week range of $1.38 to $3.55 per share. The company has 278 million shares outstanding and a market capitalization of $753 million.