GoGold’s Los Ricos North contains 87.8M oz. silver-equivalent

GoGold Resources (TSX: GGD; US-OTC: GLGDF) has released its initial resource estimate for the Los Ricos North silver project in Jalisco state, Mexico. The indicated resource contains 87.8 million oz. silver-equivalent in 22.3 million tonnes grading 122 grams silver-equivalent per tonne.

The indicated resource is divided into a silver-gold oxide zone containing 14.5 million tonnes grading 0.35 gram gold per tonne and 100 grams silver per tonne and the El Orito sulphide zone with 7.8 million tonnes grading 0.06 gram gold and 28 grams silver per tonne (plus copper, zinc and lead).

GoGold Resources president and CEO Brad Langille (right) at the Los Ricos core shack in Mexico. Credit: GoGold Resources

The inferred resource is likewise divided. In the silver-gold oxide zone there are 15 million tonnes grading 0.28 gram gold and 91 grams silver. The El Orito sulphide zone contains 5.5 million tonnes grading 0.06 gram gold and 28 grams silver (plus copper, zinc and lead).

In terms of contained metal, the deposit contains 186,000 oz. of gold and 53.5 million oz. of silver in the indicated resource category and 148,000 oz. of gold and 49 million oz. of silver in the inferred category.

GoGold is planning to drill 100,000 metres next year to expand the resources.

The company is also testing the Los Ricos South project on the same property. Here a measured and indicated resource of 10 million tonnes grading 0.91 gram gold and 119 grams silver containing 293,000 oz. of gold and 38 million oz. of silver has been estimated. There is also an inferred resource of 3.3 million tonnes grading 0.88 gram gold and 112 grams silver for 93,000 contained oz. of gold and 11.8 million contained oz. of silver.

In January, the company released a preliminary economic assessment for Los Ricos South that outlined an after-tax net present value at a 5% discount rate of $295 million and an after-tax internal rate of return of 46%.

In a mine life of 11 years, the project would produce 42.9 million oz. of silver, 352,000 oz. of gold, and 4.5 million lb. of copper. The initial capex would be $125 million. All-in sustaining costs were estimated to be US$11.35 per oz. of silver-equivalent.