GoGold Resources (GGD) - $$Billion Miner with More Leverage to Come

GoGold Resources Inc. is a silver and gold production and exploration company. The company was founded in 2008 and is headquartered in Nova Scotia, Canada. It is listed on the Toronto Stock Exchange (TSX-V: GGD) and trades on the OTC markes (OTCQXL: GTGDF). The company's major projects are based in Mexico.

GoGold Resources was recently picked up by the prestigious GDX Index (The VanEck Vectors Gold Miners). As a result, the company has gained significant traction in terms of liquidity, which benefits both retail and institutional investors.

We met with Brad Langille, President, CEO, and Director, GoGold Resources. He is the co-founder of Gammon Gold Inc. and Mexgold Resources Inc, where he served as a Director and CEO. He is credited with the development and growth of the Ocampo mine and the El Cubo mine between 1999 and 2008. He joined GoGold as a strategic advisor in 2010 and was appointed as the President and CEO in 2016. Over the course of his career, Brad has raised over $1Bn in capital across multiple projects. Brad is also the second-largest shareholder at GoGold Resources. 

Company Overview

GoGold is a Canadian-based silver and gold producer with projects located in Mexico. The company's major projects include Los Ricos in Jalisco, Mexico, and Parral Tailings in Chihuahua, Mexico.

The Los Ricos Property

Acquired in 2019, this project features 42 concessions and is spread across a land area of 22,000 hectares. The property features multiple historic mining operations. As per the initial 43-101 compliant mineral resource in early 2020 and the PEA announced in January 2021, the company posted a base NPV (Net Present Value) at $295M.

The Los Ricos project was launched in March 2020 and it features 100 identified targets by the company's exploration team. The company is currently carrying out its 100,000m drilling program at the El Favor, La Trini, Casados, and El Orito targets.

The Parral Tailings Property

The Parral operation is an agglomerated heap leap facility processing historic tailings. The tailings are stacked on a heap leach pad and are processed through a Merril Crowe facility to produce supply-ready silver, gold, and copper at low costs. The company has been able to consistently raise its production volume on a YoY (Year-on-Year) basis. 

Drill Results

GoGold Resources has 9 drill machines in operation at the Los Ricos project, focused towards the north end of the property. The company is set to put out its resource in October 2021. They have a $20M program with 100,000m drilling planned, which is scheduled to complete by September. Once concluded, the company has another 100,000m planned. 

GoGold Resources has been able to identify intercepts with 5kg deposits at a depth of 1m, within a narrow range, and 285g at a depth of 61m. This offers bulk-mining opportunities along with additional revenue as these deposits also contain other metals.

The company is focused on bulk mining the underground and open-pit deposits as it offers an easier operation from an engineering point of view while adding a significant resource of ounces to the overall supply. The company has also stepped out of the Favor, El Orito, and Casados zones and found wide, high-grade ounces. 

Targets 2021 and Beyond

GoGold Resources is looking for ways to join the North and South Los Ricos deposits. Planned development of a mill is also underway in the south. The mining operation at Los Ricos south offers potential for expansion.

The company has a liquidity of $73M. The company is currently generating a $2M cash flow from the Los Ricos south deposit and plans to carry out the engineering work and feasibility deposit at the site from the generated revenue. They have been able to significantly de-risk the operation. 

The company plans to take a construction decision at the Los Ricos north site, a move that can potentially grow the overall supply to 10Moz yearly. The company has a strong vision to further increase its supply through drilling and exploration before building a mine, further improving its NPV. 

The company has successfully built 4 mines. The company is looking to significantly grow in value in the next 12-18 months by way of additional discoveries and supply generation. The company has observed an eightfold increase in its share price which was originally trading at $0.40. 

GoGold Resources has already acquired the necessary social licenses and has a strong relationship with the local community and the administration. 

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To find out more, go to the GoGold Resources Website