GoGold Resources Inc.
GoGold Resources is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico.
Brad Langille (President and CEO) and Terry Coughlan (Co-founder and Chairman of the Board) are experienced mine builders having previously developed the Ocampo Mine – one of Mexico’s largest gold and silver mines.
With Parral Mine in production and Santa Gertrudis Gold Project targeted to be in construction in 2016, GoGold is forming a balanced portfolio of properties that should provide ample cash flow over the next few years.
(1) Parral Tailings Project, Chihuahua, Mexico
Location: Hidalgo del Parral, Chihuahua, Mexico
Status: Commercial Production
Reserves: 35 Million oz Silver Equivalent
Measured & Indicated Resource: 12.6 Million oz Silver Equivalent
Production in 2015: 1.3 Million oz Silver Equivalent
The 141 hectare Parral Tailings property located in the heart of Parral and host to 20 million tonnes of tailings left over from historic mining operations. GoGold's 2013 pre-feasibility study defined a reserve of 35 million ounces of silver equivalent (20.3 million tonnes at 38.4 g/t Ag and 0.31 g/t Au, at a cut-off grade of 0.34 g/t AuEq), a pre-tax internal rate of return (“IRR”) of 80% and a life of mine (“LOM”) of 12 years.
In February 2015, GoGold acquired the nearby Promotora tailings property containing an additional Measured and Indicated mineral resource estimate of 5.77 million tonnes at 49 g/t silver and 0.26 g/t gold for an estimated 12.6 million silver equivalent ounces, at a cut-off grade of 36 g/t AgEq, calculated at a silver-to-gold ration of 71:1. Material from the new acquisition will be processed at GoGold's existing heap leach facility.
Recent Performance Highlights
(2) Santa Gertrudis Gold Project, Sonora, Mexico
Location: 180 km north of Hermosillo, Sonora, Mexico
Status: Final Engineering; Construction Target 2016
Resource Estimate: 810,000 oz Indicated (23.3 million tonnes at 1.08 g/t Au) & 255,000 oz Inferred (7.7 million tonnes at 1.02 g/t Au)
The original mine at Santa Gertrudis produced 564,000 ounces of gold at an average grade of 2.13 g/t. As a past-producer, substantial infrastructure is already in place including pre-stripped pits, haul roads, water, and housing.
In September 2014, GoGold released an initial PEA showing a substantial increase over previously released resource estimates. Relatively shallow deposit depths present an opportunity for low cost mining and the majority of mineral resources are oxide and amenable to heap leaching.
Operating Highlights and Project Performance ($US)
In February 2015, the Mexican government granted the environmental permit for the Santa Gertrudis gold mine.
In May 2015, GoGold released results of its extensive drill program. Three targets have been identified as the initial pits that the Company could restart mining and should represent the first four years of feed.
Highlights of Recent Drilling (May 2015)
Construction is expected to being immediately following the completion of final engineering of the heap leach pad and processing plant.
(3) San Diego Project, Durango, Mexico
Location: Durango, Mexico
Claim Area: 2,000 hectares
San Diego is a 2,000 hectare epithermal gold/silver system. The geology contains high and low sulphidation mineralizing systems. Several mineralized structures, alteration zones, intrusive phases and related breccia zones outcrop on the property and the area is peppered with numerous artisanal mines.
Several exploration targets have been identified with 87 drill holes drilled to date.
Drilling Highlights from San Diego
Growth Profile 12 – 18 Months
Management and Directors
Bradley Langille, President and Chief Executive Officer
Mr. Langille was co-founder, Director and Chief Executive Officer of both Gammon Gold Inc. and Mexgold Resources Inc. Mr. Langille directed the growth and development of the Ocampo mine and the El Cubo mine. Mr. Langille was Strategic Advisor for Nayarit Gold Inc.
Dana M. Hatfield, CA, Chief Financial Officer and Director
Mr. Hatfield has over 15 years of financial leadership in increasingly senior roles. Mr. Hatfield served as CFO for Brigus Gold Corp., Senior Vice President Finance for AuRico Gold Inc., and Director of Finance with the Eastern Canada division of Sysco Corporation.
Anis Nehme, MASc. Eng., Chief Operating Officer
Mr. Nehme has more than 10 years of experience in the mining industry, with extensive experience in both open pit and underground mining. Mr. Nehme held a number of roles at Gammon Gold Inc. including VP Projects where he was critical in the construction of the company’s flagship Ocampo mine and the Assistant Manager of Gammon’s El Cubo mine. Through working in Mexico, Mr. Nehme brings extensive experience in contract negotiation and permitting.
Terence F. Coughlan, P.Geo., Director, Chairman of the Board
Mr. Coughlan has been actively involved in the mineral resource industry since 1984. Mr. Coughlan was Director and Vice President of Gammon Gold Inc., and served as Vice President and Director of Acadian Mining Corporation.
Phillip Gaunce, CA, Director
George F. Waye, FCA, Director
Terrence R. Cooper, Q.C., Director
On April 13, 2017, GoGold Resources Inc. announced its production for the quarter ended March 31, 2017, was 422,773 silver equivalent ounces, a 5-per-cent increase over the prior quarter.
On February 13, 2017, GoGold Resources Inc. announced its financial results for the quarter ending Dec. 31, 2016. GoGold recorded revenue of $6.9-million (U.S.) from the sale of 413,941 silver-equivalent ounces with a cash cost per silver-equivalent ounce of $6.70 (U.S.), with an operating income of $2,175,000 (U.S.) for the quarter.
On October 19, 2016, GoGold Resources Inc. announced that it has uncovered additional zones of high-grade gold on surface at the Greta project at its Santa Gertrudis gold mine located in Sonora state, Mexico. GoGold's trench 318 uncovered 18 metres of 32.8 g/t (grams per tonne) gold.
On September 12, 2016, GoGold Resources Inc. provided a progress update on its wholly owned Santa Gertrudis gold deposits located in Sonora, Mexico. GoGold plans to begin an initial phase with a 2,000-ton-per-day vat leaching operation. GoGold plans to begin the installation of the vats at the old plant site at Santa Gertrudis in October, 2016, and will require three to four months to complete.
On August 10, 2016, GoGold Resources Inc. announced its financial results for the three and nine months ending June 30, 2016. The Company recorded revenue of $6-million (U.S.) from the sale of 348,747 silver equivalent ounces at a cash cost of $6.91 (U.S.) per silver equivalent ounce in the quarter ending June 30, 2016. Revenue increased 17 per cent in the current quarter compared with the prior quarter.
On July 14, 2016, GoGold Resources Inc. announced that the Company produced 361,705 ounces of silver equivalent for the quarter ended June 30, 2016, which represents an 8-per-cent increase over the previous quarter.
On June 7, 2016, GoGold Resources Inc. announced that it has closed its previously announced bought deal offering of 8,561,078 units of the Company at a price of $1.30 per unit, which includes 861,078 units issued pursuant to the exercise in part of an overallotment option, for gross proceeds to the Company of $11,129,401.40.
The net proceeds of the offering will be used to advance the Company's mineral properties in Mexico, and for working capital and general corporate purposes.