GoGold Resources (GGD) - High-Grade Silver Result Just Keep Coming

GoGold Silver & Gold is a Canadian headquartered mining company. The Company is engaged in the exploration, development and production of gold, silver and copper with projects in Mexico.

Following the latest press releases from GoGold and the announcement of the PEA for Los Ricos South we spoke to Bradley Langille, President & CEO of the company. We last caught up with GoGold just after the New Year.

PEA for Los Ricos South: Drivers, Timing, & Results

GoGold has put out a high-level PEA early on for Los Ricos South as they are keen for people to see the economics of the target. They have put a lot of work into the costing and got quotes on the mining and actual quotes on 60% of the components in the mill. The costing is looking good for the target at USD$295M in net assets at $1,550/oz Gold. 

This is the first target in the South which the company first started drilling 22-months ago. There is now a significant resource having drilled 35,000m, and they now have a PEA in place. When a company is growing, a different group of shareholders is attracted along the way. GoGold has some great retail shareholders but has now started to attract some bigger institutions who like to have a PEA to build their financial model around. 

GoGold has an operating mine in Parral which has been operating for 6-years with 8 more years of reserves and generating 2.2-2.4Moz/year. At current prices, it has generated over USD$2M/month of free cashflow, which has provided funding for everything. Now they are looking for progression for the company so started work at Los Ricos 22-months ago which has been a real catalyst for growth for the company. GoGold will have a team down in the South who will be working on metallurgy and final engineering towards a final mine construction decision in 2022. 

At Los Ricos North, there is potential for a lot more growth and the company has planned a 100,000m drill programme over the next 12 months and believes the North is the area that will put the company in the spotlight.

GoGold has worked at a very aggressive pace in Los Ricos South and are planning an equally aggressive exploration programme in the North which they can run in parallel and advance both projects very quickly. The North looks as if it will be a very significant-sized resource which they hope to have complete by September/October.

Reasons for Urgency: Views for the Market in 2021

The company has allocated a very big budget and raised some money before Christmas as the market and the share price was good at the time. They anticipate commodity prices will be strong for a long time and that it will be a good cycle. There are issues in the world which will drive the Gold and Silver price and the green revolution is also a growing market for Silver which is used for solar panels, etc, so they believe there will be a good market for Gold and Silver for some time ahead.

They are well positioned as a company with their balance sheet, their cash flow, and their assets.They already have a producing mine and a proposed mine at Los Ricos South but the best project is Los Ricos North which is part of a very large system and has the exploration potential of being multiples of Los Ricos South in size. Once the drill programme is underway they will be able to apply grades and calculate the ounces of the project.

There is a good pipeline of projects ahead for GoGold and by the end of 2021, they hope to be recognized as one of the really important Silver assets in the business.  

The Potential for Los Ricos: Approach to Progression

GoGold aims to continue to advance Los Ricos South towards a mine and believe that during the first year, will have more than 8Moz of Silver production when added to production at Parral is over 10Moz Silver production. 

The drill programme at Los Ricos North means we will see a lot of drill results over the coming months which will keep the public informed and help people understand the potential of the scale at the project. 

It was great to catch up with the news from GoGold Resources and to hear their progress from 2020 and what they have planned for 2021. They are aggressively drilling their way to success. We started writing about Gogold when they are at $0.40 as we felt they had all the ingredients to actually be a +$Billion company. So far they haven't let us down. 

To find out more, go to GoGold Resources' website.