June 14, 2011
PR 09 - 2011
Trading Symbol: TSX-V: GGD
Shares Issued: 55,716,665
GoGold Resources Options and Acquires an Additional 46,774 Hectares Adjacent to Its San Diego North Project Area in Mexico
HALIFAX, NOVA SCOTIA -- (CNW –June 14, 2011) - Terry Coughlan, President and CEO of GoGold Resources Inc., announces that the Company has closed an option agreement through its 100% owned subsidiary Minera Durango Dorado S.A. DE C.V. (“MDD”), a Mexican company, to earn a 100-per-cent interest in four (4) additional gold and silver mining concession titles (the “Claims”) covering approximately 2,232 hectares in Durango State, Mexico. The company has also acquired an additional 44,542 hectares through claim staking which has increased the total San Diego Project land area to 70,987 hectares.
Prior to closing the option agreement, the Company conducted preliminary sampling and recognisance work on the Claims. Over 25 alteration zones with potential for bulk tonnage gold and silver mineralization and ten (10) veins have been identified by Company geologists. Initial mapping and sampling to date has returned grades as high as 6.05 grams per tonne (g/t) gold and 662.0 g/t silver.
The highlights of the recognisance sampling are detailed in the table below:
Selected assay results:
|Sample Name||Au g/t||Ag g/t||Width (m)||Gold Equivalent||Geology|
|PNA - 266||2.17||18||1||2.56||andesitic rock with silicification and oxidation|
|PNA - 268||0.51||24||1||1.03||andesitic rock with silicification and oxidation|
|PNA - 269||5.10||111||3||7.51||dacitic rock with strong silicification and oxidation|
|PNA - 270||1.26||31||3||1.93||dacitic rock with strong silicification and oxidation|
|PNA - 273||0.63||25||1.5||1.17||andesitic rock with quartz veinlets|
|PNA - 300||0.7||22||2.5||1.18||andesitic rock with oxide and quartz veinlets|
|PNA - 309||1.52||454||1.5||11.39||fault zone|
|PNA - 310||5.09||662||1||19.48||fault zone|
|PNA - 362||6.05||157||1.3||9.46||andecitic rock quartz veinlets|
Silver/Gold ratio of 46:1 used for Gold Equivalent, metallurgical recoveries and net smelter returns are assumed to be 100%.
Under the terms of the option agreement with the arms-length optionors, GoGold will have an option to acquire a 100% interest in the Claims in exchange for the following:
i. A total payment of $80,000 of which $60,000 has been used to pay back taxes on the Claims and $20,000 has been paid to the optionors.
ii. Paying a minimum advance royalty of $40,000 per annum starting in year three and ending in year eight. The royalty is based on a payment of up to $4.00 per ounce of gold equivalent NI 43-101 compliant mineable reserves (“Reserves”). Any advance royalty payments will be applied against the final royalty payment due. MDD has agreed to pay the optionors of the Claims an ongoing royalty of up to $4.00 per ounce of any future increase in Reserves; and
iii. MDD may exercise the option to acquire the Claims at any time by paying the total minimum advance royalty or at the end of the eight year period provided all payments above have been made.
Sample Protocol and Trench Techniques
Samples were collected on surface and underground with hammer and chisel along a continuous line of exposed rock. Fragments or chip samples from a channel of approximately 5cm or less in depth were collected in numbered plastic sample bags, and approximately 2 to 3 kg of rock was collected. Sample intervals are marked on the rock with spray paint along with the sample number. All samples collected by GoGold were supervised by Ramon Luna P.Geo. These samples were bagged, tagged and sealed at the sample site and delivered to ACTLAB in Zacatecas, Mexico.
All samples were processed by method (A.A) Atomic Absorption FAG323 and ICP14. All samples were first assayed by method FAG323 for gold and silver which has detection limits for Au of 3 g/t and Ag 5 g/t. A 30g sample was assayed by Fire Assay with an AAS finish for Au and a gravimetric finish for Ag.
Mr. Ramon Luna P.Geo is the qualified person as defined by National Instrument 43-101 and is responsible for the preparation of this release.
For further information please contact:
Terence F. Coughlan, President and CEO,
Sean Tufford, Vice President, Corporate Development
GoGold Resources Inc.,
T: 902 482-1998
F: 902 442-1898
Or visit : www.gogoldresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This News Release includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential ineralization and reserves, exploration results, and future plans and objectives of GoGold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from GoGold’s expectations are exploration risks detailed herein and from time to time in the filings made by GoGold with securities regulators.
(Not for distribution to US wire services or for dissemination in the United States of America)