GoGold Resources Keeps Los Ricos South Construction on Schedule for Q2 2028 First Silver

• More than 150 contractors are on site at Los Ricos South, with site clearing and earthworks advancing at the process plant area.
• All long-lead equipment orders have been placed, including the SAG mill, crusher, tailings filter and Merrill-Crowe plant.
• Plant design by M3 and DENM Engineering is 90% complete.
• Underground mining contractor Cominvi is scheduled to mobilise to site in Q4 2026.
• The project is fully funded, with US$284 million in cash and a minimum cash reserve of US$130 million planned throughout the build.

GoGold Resources (TSX:GGD) is a Canada-based silver and gold producer focused on projects in Mexico. Headquartered in Halifax, Nova Scotia, the company operates the Parral Tailings mine in Chihuahua state. In Jalisco state, it is developing the Los Ricos South project following a board-approved construction decision, and advancing the Los Ricos North exploration and development project. The company's stated aim is to build a portfolio of low-cost, high-margin projects.

Construction On Schedule With 150-Plus Contractors On Site

Construction at Los Ricos South began on August 25, 2026. Site clearing and earthworks, which involve preparing and levelling the ground ahead of building, are under way at the process plant site. The company has spent US$15 million on the project to date.

President and CEO Brad Langille said:

"Construction at Los Ricos South is moving ahead at full steam. Site clearing is well advanced, with more than 150 contractors on site, and all long-lead equipment orders have been placed."

Long-lead equipment refers to large items that take an extended time to manufacture and deliver. The orders include the SAG mill (a large rotating drum that grinds ore), a crusher, a tailings filter (which removes water from processed rock for storage), and a Merrill-Crowe plant (a system that recovers silver and gold from solution). Conveyors, slurry pumps, hydrocyclones, feeders, screens and electrical switchgear are also on order, with procurement continuing on schedule.

90% Complete Plant Design and Cominvi Selected for Q4 2026 Mobilisation

Engineering firms M3 and DENM Engineering have advanced the design of the Los Ricos South process plant to 90% completion. The plant site is where current clearing and earthworks are concentrated.

GoGold has selected Cominvi as the underground mining contractor, with mobilisation to site planned for Q4 2026. Separately, optimisation of the underground mine plan, which covers how and in what order ore will be extracted, began in August 2026.

Construction and procurement remain on schedule, and the company has reiterated its target of first silver pour in Q2 2028. First silver pour refers to the first casting of silver-bearing metal into bars at the new operation.

Fully Funded US$284 Million Cash Position With Zero Debt or Additional Equity Required

GoGold's funding plan for Los Ricos South draws on its existing cash balance together with cash flow from the Parral Tailings mine. The company does not expect to take on debt or issue new shares to complete construction.

President and CEO Brad Langille said:

"With US$284 million in cash in addition to cash flow from Parral, the project is fully funded with no debt or additional equity required. Based on our internal estimates using $60/oz silver and $4,200/oz gold, we see our maximum cash outlay in Q3 2027 and maintain cash reserves at a minimum of US$130 million throughout the build."

The company's quarterly spending and cash balance projection also includes the exercise of 27.5 million outstanding warrants in November 2028. Warrants give holders the right to buy shares at a set price, in this case C$3.50 each, for net proceeds of approximately US$67.5 million.

Milestones and Next Steps

Powerline installation is scheduled to start in November 2026. January 2027 is set for concrete foundation pouring, the start of paste plant construction (a facility that mixes processed rock with cement to backfill mined-out areas underground), and portal and ramp development to form the entrance to the underground mine. Hill-slope stabilisation and mining at the Main/Abra zone are planned for March 2027, followed by SAG mill delivery in May 2027. Plant commissioning, the testing of equipment ahead of production, is scheduled to begin in January 2028, ahead of first silver pour in Q2 2028.

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