GoGold Resources Advancing Towards District-Scale Silver Production

• GoGold Resources is a junior miner focused on silver production in Mexico, with an operating mine at Parral and flagship projects at Los Ricos North and South.
• At Los Ricos, they've drilled over 270 million silver equivalent ounces in the past 4 years across the two projects, with 875 million NPV.
• GoGold has a strong balance sheet with $99 million cash ready for building the projects, expecting to need another $50-75 million.
• For Los Ricos South, they are targeting initial production of 1,750 tpd from underground, with plans to expand. Permits being progressed for underground mining.
• Timeline is aggressive but achievable - targetting pre-feasibility study by end of 2022 or early 2023, followed by permitting, construction, and first production.

About GoGold Resources

GoGold Resources is a Canadian mining company focused on silver production in Mexico. The company has been operating the Parral tailings project in Mexico for 9 years, which has 5 more years of reserves remaining. However, the flagship project for GoGold is the Los Ricos district in Jalisco state, which contains the Los Ricos North and Los Ricos South deposits. Over the past 4 years, GoGold has increased resources at Los Ricos from zero to 270 million silver equivalent ounces. The combined net present value of the two Los Ricos projects is estimated to be around $875 million based on 2020 feasibility studies. The company is led by CEO Brad Langille and has institutional shareholders.

Interview with Bradley Langille, President & CEO of GoGold Resources Inc.

Well-Funded to Advance Projects

Despite difficult market conditions, GoGold has maintained a strong balance sheet. With $99 million in cash, the company is fully funded for the equity portion to build the initial phase of the Los Ricos South mine. GoGold expects to secure $50-75 million in debt financing to fully fund the $148 million initial capex. The strong cash position gives the company flexibility to continue advancing the projects as planned, regardless of market sentiment or share price fluctuations.

According to CEO Langille, the sizable financings completed earlier at higher share prices now look prudent. The risk reduction strategy of securing funds in advance has put GoGold in an enviable position compared to peers who may have good projects but lack access to capital. Langille emphasizes making decisions focused on executing the long-term business plan rather than reacting to short-term market fluctuations.

Advancing Los Ricos South Towards Production

The Los Ricos South project is slated to become GoGold's next production asset. A Preliminary Economic Assessment (PEA) outlines a 1,750 tonne per day underground operation with an initial 11 year mine life producing 4.8 million ounces of silver and 32,000 ounces of gold. The projected all-in sustaining costs are $7.52 per ounce silver with an after-tax NPV of $458 million at a 5% discount rate.

The company is working on a Pre-Feasibility Study and front-end engineering design for Los Ricos South expected by early 2023. Geotechnical drilling is underway and permitting for the underground mine is progressing well. The goal is to commence construction rapidly once permits are received. At the proposed phase 1 production rate, Los Ricos South is projected to generate around $80 million per year in free cash flow to fund expansion plans.

Next Steps at Los Ricos North

The Los Ricos North project is located just 12 kilometers from Los Ricos South but requires separate infrastructure including an 8,000 tonne per day processing plant. The project is estimated to have a much larger resource and higher capital requirements in the range of $200 million. However, Los Ricos North is still projected to generate an NPV of over $400 million.

GoGold's strategy is to use the free cash flow from Los Ricos South to fund the development of Los Ricos North. This would reduce the need for additional equity raises in the future. The company aims to ultimately ramp up combined production from Los Ricos to 15-17 million ounces of silver per year with all-in sustaining costs below $10 per ounce.

Conclusion

GoGold Resources offers investors exposure to a fast-growing silver producer in a strong mining jurisdiction. The Los Ricos district has the potential to become one of the premier silver districts globally. The phased approach aims to minimize capital requirements and project execution risk. With a strong balance sheet, GoGold is uniquely positioned to continue advancing the projects despite weak equity markets. The company expects to reach major permitting and construction milestones over the next 12-18 months. Investors can anticipate steady progress towards achieving silver production before the end of 2024.