#Canada #Halifax #GoGold Resources #Los Ricos South #Mining Project

GoGold Announces Feasibility Study Results for Los Ricos South

GoGold Resources Inc., a leading player in the mining sector, has recently released the results of its highly anticipated feasibility study (FS) for the Los Ricos South project, nestled in Jalisco, Mexico. The study marks a significant milestone for the company, showcasing an after-tax net present value (NPV) of $355 million at a 5% discount rate, making the project an attractive prospect for investors and stakeholders alike.

Significant Financial Projections

The study's projections are built upon a base scenario that assumes silver prices at $26.80 per ounce, gold prices at $2,330 per ounce, and copper prices at $4.00 per pound. Under these conditions, the project is forecasted to yield an after-tax internal rate of return (IRR) of 28%. Notably, if market prices rise to approximately $30 for silver and $2,608 for gold, the NPV could escalate to $469 million, while the IRR could soar to 34%.

GoGold projects a 15-year operational lifespan for the Los Ricos South mine, with an estimated production output of around 80 million payable silver equivalent ounces (AgEq). This total encompasses 41 million silver ounces, 424 thousand gold ounces, and 11 million pounds of copper. The initial capital expenditure is estimated to be around $227 million, inclusive of contingency costs of $21 million.

Operational Efficiency and Environmental Considerations

The feasibility study outlines a re-engineered mining plan, moving towards an underground model capable of processing 2,000 tonnes daily. This approach not only aims to maximize extraction but is also designed to minimize surface disturbance, aligning with GoGold's commitment to sustainable mining practices.

The average operational cost is projected to be $9.94 per ounce of AgEq, with all-in sustaining costs (AISC) averaging around $11.19 per ounce over the first five years of production. This efficiency, combined with robust profitability metrics, highlights Los Ricos South as a project with considerable upside potential.

Technical and Engineering Insights

The project's development has benefitted from meticulous engineering, led by Ausenco Engineering Canada ULC, which contributed to the design and cost estimations necessary for the process plant. The feasibility study also included a Front-End Engineering Design (FEED) component, enriching the overall engineering framework and functioning to streamline the transition towards detailed engineering and on-site execution phases in the future.

In addition, a successful conversion of mineral resources to proven and probable reserves has been achieved, totaling 10.2 million tonnes at an impressive average grade of 276 g/t AgEq. This included the grading of underground reserves at 326 g/t AgEq.

Community and Future Prospects

Beyond the financials, GoGold's leadership emphasizes the project's alignment with community interests. In a statement, Brad Langille, President and CEO, expressed optimism about obtaining the necessary permits for underground mining, anticipating a positive outcome by March 2025. He also highlighted the immense potential for further exploration within the Los Ricos properties, aiming to enhance their resource base in both Los Ricos North and South.

The Los Ricos projects reflect GoGold's broader strategy of focusing on high-quality silver and gold projects within Mexico, targeting lower operational costs alongside high-margin outputs. With a solid balance sheet and ongoing discussions with prospective lenders, GoGold is well-positioned to take the next steps towards construction and operationalizing the Los Ricos South project.

Conclusion

GoGold Resources Inc. is steering forward with its Los Ricos South project, showcasing strong financial fundamentals and a commitment to sustainable mining practices. As the company prepares to embark on the construction phase, investors are keenly watching how these developments will unfold, marking a potentially transformative period for GoGold within the vibrant Mexican mining landscape.