TSX:GGD

A Canadian-based gold and silver producer
with properties in Mexico

GoGold Drills 84 Metres True Width of 2.43 g/t Gold Equivalent (AuEq) And 70 Metres of 1.47 g/t at Breccia Hill in Mexico

NEWS RELEASE

January 17, 2012
PR# 1 - 2012

Trading Symbol: TSX-V: GGD
Shares Issued: 60,966,665


GoGold Drills 84 Metres True Width of 2.43 g/t Gold Equivalent (AuEq) And 70 Metres of 1.47 g/t at Breccia Hill in Mexico


Terry Coughlan, President and CEO of GoGold Resources Inc. (TSX-V: GGD), is pleased to announce further drilling results from its Breccia Hill Open Pit Target (San Diego North) at its San Diego Project in Durango, Mexico. These six holes (See Table 1 below) along with the five previously released drill holes (See Table 2 below) intersected gold and silver mineralization over significant widths in a breccia that when drilled was discovered to be in a larger polymetallic zone in a quartz stockwork. Highlights of the new assay results returned from the gold/silver breccia zone (true widths) include Hole GG9 with 70 metres of 1.47 g/t AuEq, including 17 meters of 3.90 g/t AuEq and Hole GG11 with 84 metres of 2.43 g/t gold AuEq, including 13 metres of 3.79 g/t AuEq.

Table 1: Most Recent Gold and Silver results from Breccia Hill

Drill Hole From (metres) To (metres) Interval (metres) True Width (metres) Au Ag Gold Equivalent* (AuEq)
GG11 49 154 106 84 1.98 20.5 2.43
Including 49 63 14 13 3.56 10.6 3.79
Including 81 154 73 55 2.18 26.8 2.77
GG10 0 62.3 62.3 40 0.2 11 0.44
GG10 330.5 338.5 8 6 0.05 25 0.6
GG9 0 129 129 70 1.18 13.5 1.47
Including 13 44 31 17 3.23 31 3.9
Including 81 113 32 23 1.21 9.5 1.41
GG8 0 29 29 20 0.15 11.2 0.39
GG7 0 50 50 40 0.76 11.1 1
Including 24.6 33 8.4 7 3.83 24 4.35
GG7 89.6 101 11.4 10.5 1.78 16.1 2.12
GG6 0 33 33 30 0.3 10.5 0.52

*Silver/Gold ratio of 46:1 used for Gold Equivalent.(Metallurgical recoveries and net smelter returns are assumed to be 100%)

 

Table 2: Previously released Gold and Silver results from Breccia Hill (October 25, 2011 Press Release #15)

Drill Hole From (metres) To (metres) Interval (metres) True Width (metres) Au Ag Gold Equivalent* (AuEq)
GG1 0 56.65 56.65 54 0.16 41 1.05
Including 18 38 20 18 0.29 94.7 2.35
GG2 2.9 183.5 180.6 100 0.12 37 0.92
Including 49.7 72 22.3 14 0.4 90.3 2.36
and 108 153 45 25 0.12 68.5 1.61
GG3 0 60 60 50 0.11 18.9 0.52
GG4 0 74 74 45 0.08 8.67 0.27
and 127 152 25 15 0.07 35.3 0.84
GG5 0 106 106 95 1.22 12.1 1.48
Including 8 27 19 17 1.72 29.1 2.35
Including 38 46 8 7 1.8 10.8 2.03
Including 57 77 20 18 2.23 9.42 2.43

*Silver/Gold ratio of 46:1 used for Gold Equivalent. (Metallurgical recoveries and net smelter returns are assumed to be 100%)

 

Table 3: Coordinates of the Most Recent 6 Drill Holes

HOLE_ID EAST NORTH ELEV AZ DIP DEPTH
GG6 460899 2585236 1770 115 -170 248
GG7 460898 2585235 1771 90 -50 271
GG8 460898 2585235 1760 90 -75 200
GG9 460898 2585235 1760 99 -45 292.2
GG10 460898 2585235 1760 99 -60 496.5
GG11 460970 2585190 1740 90 -54 334.4

 

Current Activity – Advancing the Property

The Company is preparing a 3,000 metre drill program on the Chispa De Oro target as soon as the drill sites are completed this month. Our geological team believes that the Chispa De Oro alteration zone is a high sulphidation system based on rock mineralogy and field observations. With significant results of gold and silver on surface, Chispa De Oro has become a high priority target for drilling. Recent mapping within the Chispa De Oro area has extended the area of interest to three kilometres by one kilometre. Exploration within the Chispa area is now focused on the southern portion of this high sulphidation system where it is believed the principle feeder system exists within a large oxidized alteration zone containing widespread disseminated gold and silver. The Chispa De Oro area shares many similarities with other high sulphidation epithermal gold and silver deposits around the world, including Yanacocha and Tukary in Peru, some of the largest gold deposits in the world. Further work and diamond drilling on other selected targets elsewhere on the San Diego project are also planned for the upcoming months. Our goal is to demonstrate the potential of this large unexplored region (for more information on the Chispa De Oro target, please see the Company’s press release dated August 10, 2011).

The San Diego District

GoGold geologists have interpreted the geology of the 70,000-hectare San Diego project as containing both high and low sulphidation mineralizing systems within an andesitic volcanic complex with several potential porphyry complexes underlying a structural corridor measuring 35 kilometres long by 10 kilometres wide. Several mineralized structures, alteration zones, intrusive phases and related breccia zones outcrop on the property. In addition to the gold and silver potential of the project, potential exists for large tonnage porphyry targets as demonstrated by the wide copper and molybdenum drill intercepts at Breccia Hill.

Lab Preparation

The sealed and tagged core sample bags are turned over to ActLabs personnel at the site who transport them to the ActLabs sample preparation facility in Zacatecas, Mexico. ActLabs crushes the samples and prepares 200-300 gram pulp samples. Ninety percent of the pulp will pass Tyler 150 mesh (106μm). The pulps are sent to ActLabs in Canada for analysis for Au/Ag fire assays with a gravimetric finish and ICP-41 for all the other elements.

Mr. Ramon Luna P.Geo is the qualified person as defined by National Instrument 43-101 and is responsible for the geological information of this release.

 

For further information please contact:

Terence F. Coughlan, President and CEO,
or,
Sean Tufford, Vice President, Corporate Development
GoGold Resources Inc.,
T: 902 482-1998
F: 902 442-1898

Email : This email address is being protected from spambots. You need JavaScript enabled to view it.
Or visit : www.gogoldresources.com

CAUTIONARY STATEMENT:

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 mineralization 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)