GoGold Resources Inc T.GGD

Alternate Symbol(s): GLGDF

Metals & Mining Silver

GoGold Resources Inc. is a Canada-based silver and gold producer. The principal business of the Company is the exploration, development, and production of silver, gold and copper primarily in Mexico. It is focused on operating, developing, exploring and acquiring projects in Mexico. The Company’s properties include Los Ricos and Parral tailings. The Los Ricos property is situated in Jalisco state, Mexico. The property is comprised of over 42 concessions, covering over 22,000 hectares (ha). The property is located approximately 100 kilometers (kms) northwest of the city of Gaudalajara. The property is split into two projects, the Los Ricos South project and the Los Ricos North project, which are approximately 25km apart. The Parral tailings Project is within the town limits of Hidalgo del Parral, in the State of Chihuahua, Mexico, which covers approximately 141 ha.

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Post by Bluetickon Dec 07, 2021 7:27am

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Post# 34205261

Mineral Resource Estimate at Los Ricos North

GoGold Announces Initial

Mineral Resource Estimate at Los Ricos North

Tue, December 7, 2021, 5:30 AM ·21 min read

In this article:

TSX: GGD
OTCQX: GLGDF

HALIFAX, NS, Dec. 7, 2021 /PRNewswire/ - GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the Company") is pleased to announce their Initial Mineral Resource Estimate for their Los Ricos North Project located in Jalisco State, Mexico. In addition, the Company has updated the Mineral Reserve at the Parral Tailings operation.

Highlights of the Mineral Resource Estimate:

Indicated Mineral Resource at Los Ricos North of 87.8 million ounces silver equivalent ("AgEq") grading 122 g/t AgEq contained in 22.3 million tonnes ("Mt") (Table 1)
Inferred Mineral Resource at Los Ricos North of 73.2 million ounces AgEq grading 111 g/t AgEq contained in 20.5 Mt (Table 1)
Sensitivity analysis of pit constrained Mineral Resources at higher cut-off of 50 g/t AgEq show an Indicated Mineral Resource of 80.3 million ounces AgEq grading 147 g/t AgEq and an Inferred Mineral Resource of 60.7 million ounces AgEq grading 129 g/t AgEq (Figure 1) (Table 2)
Los Ricos North Mineral Resource is calculated as a pit constrained Mineral Resource forming 96% of the Mineral Resource Estimate, with 4% being out-of-pit Mineral Resource (Indicated 0.9 million ounces AgEq grading 163 g/t AgEq and Inferred 6.4 million ounces grading 178 g/t AgEq)
Total Los Ricos Measured & Indicated Mineral Resources of 151.5 million ounces AgEq (Table 3)
Total Los Ricos Inferred Mineral Resource of 93.1 million ounces AgEq (Table 3)
Total Company Measured & Indicated Mineral Resources of 187.5 million ounces AgEq (Table 4)
Total Company Inferred Mineral Resources of 93.1 million ounces AgEq (Table 4)
In Los Ricos North, an additional 100,000 metres of exploration drilling targeting additional Mineral Resource ounces is planned for 2022

"The initial Mineral Resource Estimate at Los Ricos North exceeds expectations for the first 100,000 metres of drilling on these targets. As we embark on the next 100,000 metres of drilling at Los Ricos North, we feel confident in our understanding of the deposits and the exploration potential in 2022 to greatly increase this already substantial Mineral Resource," said Brad Langille, President and CEO. "In particular, we see El Favor East and a new area called Gran Cabrera as being major contributors to the growth of ounces over the coming year. With this Mineral Resource, we now show an Indicated Mineral Resource of 151 million ounce AgEq and an Inferred Mineral Resource of 93 million ounces AgEq in the Los Ricos District - North and South."

The effective date of these Mineral Resource Estimates is December 1, 2021 and a Technical Report on Los Ricos North will be filed on the Company's website and SEDAR within 45 days of this news release. The Los Ricos North Mineral Resource Estimate by deposit is provided below in Table 1.

Table 1: Los Ricos North Mineral Resource Estimate ^(1-11)

Deposit	Tonnes	Average Grade							Contained Metal
Deposit	Tonnes	Au	Ag	Cu	Pb	Zn	AuEq	AgEq	Au	Ag	Cu	Pb	Zn	AuEq	AgEq
	(Mt)	(g/t)	(g/t)	(%)	(%)	(%)	(g/t)	(g/t)	(koz)	(koz)	(Mlb)	(Mlb)	(Mlb)	(koz)	(koz)
Indicated:
El Favor	7.7	0.27	98	-	-	-	1.61	119	68	24,413	-	-	-	399	29,454
Casados	3.2	0.42	124	-	-	-	2.09	154	43	12,871	-	-	-	218	16,061
La Trini	3.1	0.54	74	-	-	-	1.54	114	54	7,428	-	-	-	155	11,424
Mololoa	0.4	0.36	130	-	-	-	2.12	157	5	1,788	-	-	-	29	2,161
Silver-Gold Oxide Zone	14.5	0.37	100	-	-	-	1.71	127	171	46,500	-	-	-	801	59,100
El Orito Sulfide Zone¹	7.8	0.06	28	0.11	0.88	1.33	1.55	114	15	7,011	19	151	229	389	28,708
Total Indicated	22.3						1.66	122	186	53,510				1,190	87,808
Inferred:
El Favor	12.4	0.27	89	-	-	-	1.47	108	106	35,505	-	-	-	587	43,350
Casados	1.8	0.35	108	-	-	-	1.82	135	21	6,323	-	-	-	106	7,843
La Trini	0.1	0.43	108	-	-	-	1.89	139	1	201	-	-	-	4	260
Mololoa	0.7	0.39	94	-	-	-	1.66	122	9	2,102	-	-	-	37	2,739
Silver-Gold Oxide Zone	15.0	0.28	91	-	-	-	1.52	112	136	44,131	-	-	-	734	54,191
El Orito Sulfide Zone¹	5.5	0.06	28	0.12	0.74	1.20	1.46	108	11	4,888	15	90	146	258	19,007
Total Inferred	20.5						1.51	111	148	49,019				992	73,198

	1.	El Orito is a silver-base metal sulfide zone, all other deposits are silver-gold oxide zones.
	2.	Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
	3.	The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
	4.	The Mineral Resources in this news release were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines (2014) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council and CIM Best Practices (2019).
	5.	Historically mined areas were depleted from the Mineral Resource model.
	6.	Approximately 98.9% of the indicated and 91.3% of the Inferred contained AgEq ounces are pit constrained, with the remainder out- of-pit. See tables 4 and 6 for details of the split between pit constrained and out-of-pit deposits.
	7.	The pit constrained AgEq cut-off grade of 29 g/t Ag was derived from US$1,550/oz Au price, US$21/oz Ag price, $3.66$/lb Cu, $0.90 $/lb Pb, $1.26 $/lb Zn, 93% process recovery for Ag and Au, 90% process recovery for Cu, 80% process recovery for Pb and Zn, US$18/tonne process and G&A cost. The constraining pit optimization parameters were $2.00/t mineralized mining cost, $1.50/t waste mining cost and 50-degree pit slopes.
	8.	The out-of-pit AuEq cut-off grade of 119 g/t Ag was derived from US$1,550/oz Au price, US$21/oz Ag price, $3.66$/lb Cu, $0.90 $/lb Pb, $1.26 $/lb Zn, 93% process recovery for Ag and Au, 90% process recovery for Cu, 80% process recovery for Pb and Zn, $57/t mining cost, US$18/tonne process and G&A cost. The out-of-pit Mineral Resource grade blocks were quantified above the 119 g/t AgEq cut- off, below the constraining pit shell within the constraining mineralized wireframes and exhibited sufficient continuity to be considered for cut and fill and longhole mining
	9.	No Mineral Resources are classified as Measured.
	10.	AgEq and AuEq calculated at an Ag/Au ratio of 73.8:1.
	11.	Totals may not agree due to rounding

Figure 1: Los Ricos North Block Model Visualization (CNW Group/GoGold Resources Inc.)

Figure 2: AgEq Cut-off Sensitivities – Pit Constrained Mineral Resource (CNW Group/GoGold Resources Inc.)

Table 2: Cut-off Sensitivities – Pit Constrained Mineral Resource¹

	Cut-off (AgEq)	Tonnes	Average Grade				Contained Metal
Pit Constrained	Cut-off (AgEq)	Tonnes	Au	Ag	AuEq	AgEq	Au	Ag	AuEq	AgEq
	(g/t)	(Mt)	(g/t)	(g/t)	(g/t)	(g/t)	(koz)	(koz)	(koz)	(koz)
Indicated	50	17.0	0.31	89	1.99	147	170	48,811	1,088	80,288
	40	19.5	0.28	81	1.81	134	177	51,061	1,138	83,951
	29	22.1	0.26	74	1.65	122	183	52,886	1,177	86,862
	20	23.7	0.24	70	1.57	116	185	53,681	1,194	88,106
Inferred	50	14.7	0.26	85	1.74	129	121	40,312	823	60,735
	40	17.2	0.23	78	1.58	116	128	42,834	872	64,380
	29	19.4	0.21	71	1.45	107	133	44,456	905	66,814
	20	20.8	0.20	68	1.38	102	135	45,181	921	67,951

1.	See Table 1 notes for assumptions

Mineral Resource Estimate Methodology – Los Ricos North

A total of 503 drill holes totalling 106,982 metres were used in the Mineral Resource Estimate. The nearest neighbour mean distance between drill hole collars is 23m.

P&E Mining Consultants Inc. ("P&E") collaborated with GoGold personnel to develop the mineralization models, estimates, and reporting criteria for the Mineral Resources at Los Ricos North. Mineralization models were initially developed by GoGold and were reviewed and modified by P&E. A total of 21 individual mineralized domains have been identified through drilling and surface sampling. The modeled mineralization domains are constrained by individual wireframes based on a 28 g/t AgEq cut-off.

Mineralization wireframes were used as hard boundaries for the purposes of grade estimation.

A 5m x 2.5m x 5m three-dimensional block model was used for the Mineral Resource Estimate. The block model consists of estimated Au and Ag grades, estimated bulk density, classification criteria, and a block volume inclusion percent factor. Ag equivalent block grades were subsequently calculated from the estimated Au and Ag grades.

Sample assays were composited to 1.00m standard length composites. Au and Ag grades were estimated using Inverse Distance Cubed weighting of between 4 and 12 composites, with a maximum of 3 composites per drill hole. Composites were capped prior to estimation by mineralization domain. Composite samples were selected within an anisotropic search ellipse oriented parallel to the axes of the modeled domains.

The average bulk density by deposit was assigned for the Mineral Resource Estimate.

Classification criteria were determined from observed grade and geological continuity as well as variography. Indicated Mineral Resources are informed by 3 or more drill holes within 50m.

P&E's Qualified Persons are of the opinion that the Mineral Resource Estimates are suitable for public reporting and are a reasonable representation of the mineralization and metal content of the Los Ricos North Deposits.

Table 3: Los Ricos Mineral Resources – Los Ricos North ("LRN") & Los Ricos South ("LRS")^(1-7)

Deposit	Tonnes	Average Grade							Contained Metal
Deposit	Tonnes	Au	Ag	Cu	Pb	Zn	AuEq	AgEq	Au	Ag	Cu	Pb	Zn	AuEq	AgEq
	(Mt)	(g/t)	(g/t)	(%)	(%)	(%)	(g/t)	(g/t)	(koz)	(koz)	(Mlb)	(Mlb)	(Mlb)	(koz)	(koz)
LRS Measured	1.1	1.10	152	-	-	-	2.84	249	39	5,464	-	-	-	102	8,917
Indicated:
LRN Oxide¹	14.5	0.37	100	-	-	-	1.71	127	171	46,500	-	-	-	801	59,100
LRS (Oxide)^2-6	8.8	0.89	115	-	-	-	2.20	193	253	32,588	-	-	-	626	54,765
LRN Sulfide¹	7.8	0.06	28	0.11	0.88	1.33	1.55	114	15	7,011	19	151	229	389	28,708
Total Indicated	31.1						1.93	143	439	86,099				1,816	142,573
Measured & Indicated	32.2						1.98	146	478	91,563				1,918	151,490
Inferred:
LRN Oxide¹	15.0	0.28	91	-	-	-	1.52	112	136	44,131	-	-	-	734	54,191
LRS (Oxide)^2-6	3.3	0.88	112	-	-	-	2.17	190	93	11,781	-	-	-	227	19,884
LRN Sulfide¹	5.5	0.06	28	0.12	0.74	1.20	1.46	108	11	4,888	15	90	146	258	19,007
Total Inferred	23.8						1.65	122	240	60,800				1,219	93,082

1.	See Table 1 notes for assumptions
2.	See GoGold press release #29-2020 dated July 29, 2020 for full details regarding Los Ricos South Mineral Resource estimate.
3.	The LRS pit constrained AuEq cut-off grade of 0.43 g/t Au was derived from US$1,400/oz Au price, US$16/oz Ag price, 93% process recovery, US$18/tonne process and G&A cost. The constraining pit optimization parameters were $2.00/t mineralized mining cost, 1.50/t waste mining cost and 50-degree pit slopes.
4.	The LRS out-of-pit AuEq cut-off grade of 1.4 g/t Au was derived from US$1,400/oz Au price, US$16/oz Ag price, 93% process recovery, $40/t mining cost, US$18/tonne process and G&A cost. The out-of-pit Mineral Resource grade blocks were quantified above the 1.4 g/t AuEq cut-off, below the constraining pit shell and within the constraining mineralized wireframes. Out–of-Pit Mineral Resources are restricted to the Los Ricos and Rascadero Veins, which exhibit historical continuity and reasonable potential for extraction by cut and fill and longhole mining methods.
5.	No out-of-pit Mineral Resources are classified as Measured at LRS.
6.	AgEq and AuEq calculated at an Ag/Au ratio of 87.5 for LRS.
7.	Totals may not agree due to rounding.

Table 4: Company Wide Mineral Resources^(1-3)

Deposit	Tonnes	Average Grade							Contained Metal
Deposit	Tonnes	Au	Ag	Cu	Pb	Zn	AuEq	AgEq	Au	Ag	Cu	Pb	Zn	AuEq	AgEq
	(Mt)	(g/t)	(g/t)	(%)	(%)	(%)	(g/t)	(g/t)	(koz)	(koz)	(Mlb)	(Mlb)	(Mlb)	(koz)	(koz)
Measured:
LRS¹	1.1	1.10	152	-	-	-	2.84	249	39	5,464	-	-	-	102	8,917
Parral²	6.8	0.35	32	-	-	-	0.77	58	76	6,897	-	-	-	168	12,532
Esmerelda³	5.7	0.26	49	-	-	-	0.82	72	48	8,985	-	-	-	151	13,194
Total Measured	13.6	0.37	49	-	-	-	1.07	79	163	21,346	-	-	-	421	34,643
Indicated:
LRN Oxide¹	14.5	0.37	100	-	-	-	1.71	127	...