GoGold Resources Secures Mill to Process High Grade Material from Santa Gertrudis Project
HALIFAX, Oct. 6, 2016 - GoGold Resources Inc. (TSX: GGD) ("GoGold", "the Company") announces toll milling of high grade material at Santa Gertrudis. The Company has secured a 150 tonne per day (tpd) mill to continue milling the high grade material on surface at Santa Gertrudis during the construction of the first vat leach plant. To date, the Company has mined in excess of 6,000 tonnes of material at an average grade of 13.5 g/t with 3,700 tons processed at the mill and the remainder in a stockpile. The company estimates the total cost per tonne of the Santa Gertrudis material will be $125 per tonne which will generate significant cash flow per ounce. As of the end of September the Company had poured 383 ounces of gold from Santa Gertrudis.
As of October 5, 2016 there is in excess of 800 gold ounces (approximately 54,400 silver equivalent ounces) in process from the Santa Gertrudis operation. The Company plans to continue to process high grade material and generate cash flow at the 150 tpd mill for the next six months while constructing the first phase of the Santa Gertrudis vat leach plant.
The rainy season has now ended and production at Parral will increase significantly for the quarter ended December 31, 2016. The Company estimates production of 400,000 – 500,000 silver equivalent ounces during the quarter ended December 31, 2016 as Parral ramps back up and Santa Gertrudis continues to toll mill high grade material through the next six months as the vat construction is completed.
Total production for the fourth quarter ended September 30, 2016 was 183,105 silver equivalent ounces. The Company was able to capitalize on the opportunity of an available mill, restarted the mill and began toll milling high grade material at surface from the Santa Gertrudis gold mine in the last half of September which will generate significant cash flow during the phase one construction of the vat leach plant.
Table 1. Key Performance Indicators
|Total tonnes stacked||375,734||332,076||538,965||631,219||332,628|
|Recoverable Silver equivalent stacked||600,508||439,125||615,121||775,537||416,232|
|Gold production (oz)||733||784||1,382||2,218||1,260|
|Silver production (oz)||252,300||171,047||222,388||191,618||69,358|
|Silver equivalent production (oz)***||307,822||231,253||335,183||361,705||156,636|
|Gold production (oz)||383|
|Silver production (oz)||452|
|Silver equivalent production (oz)***||26,469|
|*Internal unaudited estimate **Using Gold as a by-product credit ***Gold is converted using actual realized prices|
Mr. Robert Harris, P.Eng. is the qualified person as defined by National Instrument 43-101 and is responsible for the technical information of this release. All dollar figures have been expressed in USD.
About GoGold Resources
GoGold Resources (TSX: GGD) is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico. The Company's Parral Tailings project is one of the lowest cash cost silver producers in the world. Headquartered in Halifax, NS, GoGold is building a portfolio of low cost, high margin projects. For more information visit gogoldresources.com.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to buy of any of GoGold's securities in the United States.
This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the Parral tailings project, future operating margins, future production and processing, and future plans and objectives of GoGold, constitute forward looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of GoGold and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates, and the performance of the Parral Expansion. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
Important factors that could cause actual results to differ materially from GoGold's expectations include exploration and development risks associated with GoGold's projects, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations of recovery rates, and global economic conditions. For additional information with respect to risk factors applicable to GoGold, reference should be made to GoGold's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, GoGold's Annual Information Form. The forward-looking information contained in this release is made as of the date of this release.
SOURCE GoGold Resources Inc.