GoGold Resources (GGD) - Strong Silver & Gold Numbers

We first became interested in the story of GoGold Resources when CEO, Langille, described the company's flagship Los Ricos project as the best thing he has seen in his entire 20-year career. Fresh on the back of the company's initial mineral resource estimate for Los Ricos South (LRS), we spoke with Langille to discuss their findings. Gold and silver are incredibly hot and topical right now, so what can this do for GoGold's share price?

Matthew Gordon talks to Bradley Langille, August 2020

In case you have forgotten, GoGold is a gold-silver mining and tailings story with 2 projects in Mexico: the 22,000ha, 35-concession 'Los Ricos' exploration project, and the cash-generative Parral Tailings operation, a heap leach facility that processes historical tailings and produces silver at a low cost: 600,000oz silver equivalent at an AISC of just over US$14/oz, providing the company with a unique source of cash flow compared to its peers: almost US$2M per quarter after G&A. The company has an attractive management team with a strong track record of delivering value for shareholders, and the early numbers that were coming through the drill bit at the north end of Los Ricos South were getting the market excited: 11m of 424g/t silver equivalent and 18.4m of 889g/t silver equivalent, including 3.2m of 4,335g/t. GoGold Resources holds a district-scale, 35km land package in a geologically and geophysically prospective area.

The company has been drilling for the last 16-or-so months, working towards its maiden resource, spending US$6M and using up to 6 drill rigs. 4 were operating in Los Ricos South, and the company has started work at Los Ricos North. In total, the long-awaited and anticipated maiden resource comprises of data from over 200 drill holes. It was announced on July 29th. Let's see the numbers for GoGold Resources' initial mineral resource estimate at Los Ricos South.

• Measured & Indicated Mineral Resource at Los Ricos South of 63.7Moz silver eq. grading 199g/t gold eq. contained in 10.0 million tonnes
• Inferred Resource at Los Ricos South of 19.9Moz silver eq. grading 190g/t silver eq. contained in 3.3Mt
• Total Company Measured & Indicated Mineral Resources of 108.6Moz silver eq.
• Proven & Probable Mineral Reserve at Parral of 31.6Moz silver eq. grading 64g/t silver eq.
• contained in 15.4Mt
• Measured & Indicated Mineral Resource at Esmerelda of 13.3Moz AgEq grading 72g/t silver eq. contained in 5.7Mt
• Los Ricos South Mineral Resource is amenable to both open pit and bulk underground mining methods
• Los Ricos South Mineral Resource Estimate will form the basis of a Preliminary Economic Assessment (“PEA”) expected to be completed by the end of 2020
• Inferred out of pit grades range from 355g/t silver eq. to 512 at higher cut-off rates.

There are some extremely encouraging solid-grade gold and silver numbers on display here with good widths, and the market, as expected, has responded with excitement, pushing the share price up towards C$1.80. This maiden resource has now shored up the value proposition on offer for investors. By targeting a PEA by the end of 2020, Langille is targeting an aggressive, accelerated path towards production. This is great for gold investors because it means GoGold could still well hit this gold bull cycle in the nick of time if it gets its skates on. The exploration drilling has by no means stopped, and there could be plenty more catalyst moments in store. Having already built 3 mines in the past, Langille clearly has the ability to turn Los Ricos into a solid 2.5-3g/t gold eq. bulk tonnage mine.

Expect to hear a lot more on the north in the coming months. GoGold started drilling there back in June, and the focus right now remains drilling around 15 structures beneath the headframe (the previous mine). The initial drill results for Los Ricos North came out on August 5th, and they are as good as investors could have hoped for. Once again, the market has responded. GoGold can now continue looking at the north whilst exploring the south, aiming to connect the dots and create a single cohesive, extremely economic deposit. Langille is now keen to accelerate the exploration drill programme, with up to 10 drill rigs on the cards; he is not messing around.

Company Website: https://gogoldresources.com/