TSX:GGD

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

GoGold Provides Recap of Exploration at San Diego and New Development Project at Parral

NEWS RELEASE

August 8, 2012
PR#16 - 2012

Trading Symbol: TSX-V: GGD
Shares Issued: 128,288,331


GoGold Provides Recap of Exploration at San Diego and New Development Project at Parral


Terry Coughlan, President and CEO of GoGold Resources Inc. (“GoGold” or the “Company”) (TSX-V: GGD), is pleased to update and recap highlights of the exciting exploration activities at its San Diego Project in Durango, Mexico (“San Diego”) and its newly acquired Parral Tailings development Project in Chihuahua, Mexico (“Parral”).

With the recently completed $30,000,000 financing the company is well positioned to aggressively advance the two projects. The company has a Measured and Indicated Resource at Parral of 37,100,000 ounces Silver Equivalent OR 741,000 Gold Equivalent ounces which will be rapidly advancedthrough feasibility and towards commercial production.  At the company’s San Diego Project, exploration drilling, mapping, trenching, geophysics and soil sampling continues and new results are expected to be received shortly.

The recent discovery of widespread copper, gold, and silver mineralization have been very encouraging to date. At Breccia Hill, some of the significant gold and silver intercepts are 95 meters of 1.48 g/t gold equivalent, and 84 meters of 2.43 g/t gold equivalent underlain by copper mineralization of up to 90 meters of 0.27% and 20 meters of 0.40%. The mineralization is associated with multiple porphyry intrusive complexes discovered on the project and 14 kilometers southeast of Breccia Hill at the Chispa De Oro target (both areas are within the San Diego Project) drilling intercepted 74.5 meters of 1.89 g/t gold equivalent and 53.9 meters of 1.25% copper possibly indicating widespread copper, silver and gold porphyry mineralization is present at San Diego.

Highlights of some of the recent exploration success at San Diego from previous press releases are listed below.

March 22, 2012 Press Release - Chispa De Oro Drilling

GoGold’s First Hole GGS-18 at Chispa De Oro Intercepts a 110 metre zone which contained a 74.5 metre Interval of 1.89 g/t Gold Equivalent and 54.0 metres of 1.25% Copper and Chispa De Oro Hole GGS-20 Intercepts 50 metres of 3.85 g/t Gold Equivalent.

Drill Hole From
(m)
To
(m)
Interval
(m)
Copper
(%)
Au
(g/t)
Ag
(g/t)
 Gold Eq.*
(g/t)
GGS-18 3 77.5 74.5   0.24 76.4 1.89
GGS-18 59.6 113.5 53.9 1.25%      
GGS-19 36.4 131 94   0.04 54 1.2
GGS-19 26.4 92 65.6 0.45%      
GGS-20 1 51 50   0.35 161 3.85
GGS-20 40 54 14 1.07%      

*Silver/Gold ratio of 46:1 used for Gold Equivalent. (Metallurgical recoveries and net smelter returns are assumed to be 100%)  The orientation of the mineralization is not yet determined.

 

February 9, 2012 Press Release – Trenching at Chispa De Oro

GoGold Makes New Discovery of 40 Meters of 5.81 g/t Gold Equivalent On Surface at Chispa De Oro High Sulphidation Zone in Mexico

Highlights of The High Grade Trenches at San Diego East (Chispa De Oro)

Sample

Interval
(m)

Gold Eq.*
(g/t)

Au
(
g/t)

Ag
(g/t)

SDL-780

40

5.81

1.05

218.8

SDL-778

16

3.36

1.99

63.2

SDL-779

28

1.34

0.34

45.8

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

 

January 31, 2012 Press Release – Trenching at Chispa De Oro

GoGold Discovers Further Gold and Silver Mineralization on Surface at Chispa De Oro

Highlights:

Sample Line Interval (meters) Gold Equivalent (g/t)* Au (g/t) Ag (g/t)
SDL-614 12 1.4 0.9 22.8
SDL-630 36 0.99 0.32 30.7
SDL-648 86 0.83 0.3 24.3
SDL-662 14 1.76 0.77 45.4

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

 

Jan 17, 2012 Press Release – Drilling at Breccia Hill

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

Highlights:

Drill Hole From
(m)
To
(m)
Interval
(m)
True Width
(m)
Au
(g/t)
Ag
(g/t)
Gold Eq.*
(g/t)
GG11 49 154 106 84 1.98 20.5 2.43
GG9 0 129 129 70 1.18 13.5 1.47
GG7 0 50 50 40 0.76 11.1 1

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

 

October 25, 2011 Press Release – Drilling at Breccia Hill

GoGold Drills 95 Metres True Width of 1.48 g/t Gold Equivalent (AuEq) Within a Larger Polymetallic Zone at its Breccia Hill Open Pit Target in Mexico

Highlights:

Drill Hole From
(m)
To
(m)
Interval
(m)
True Width
(m)
Au
(g/t)
Ag
(g/t)
Gold Eq.*
(g/t)
GG1 0 56.7 56.7 54 0.16 41 1.05
GG2 2.9 183.5 180.6 100 0.12 37 0.92
GG5 0 106 106 95 1.22 12.1 1.48

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

 

Copper Drilling Results at Breccia Hill

Highlights:

Drill Hole From
(m)
To
(m)
Interval
(m)
Copper %
GG1 0 447.9 447.9 0.09
Including 18 38 20 0.4
GGS-13 187 277 90 0.27

(Metallurgical recoveries and net smelter returns are assumed to be 100%)  The orientation of the mineralization is not yet determined.
Source: GG1 – Press Release dated October 25, 2011, GGS-13 – Press Release dated March 22, 2012

 

President’s Comments – San Diego Project

Terry Coughlan, President and CEO states: “the company is very pleased with the success to date on the San Diego Project with the continuing impressive mineralization being discovered. The exploration team has been very diligent in their work and continue to be very excited about the potential of this large 70,000 hectare land package in Durango.”

 

The Parral Tailings Project – Recently Acquired

President’s Comments – The Parral Tailings Project

Terry Coughlan, President and CEO stated: “Preliminary work shows that a low cost mining and heap leach recovery process could be a viable option to develop the property.  We have commenced base line environmental studies as well as further site investigations.  Our first goal will be to quickly move the project into the feasibility stage.   With the combination of low mining costs and simple gold and silver recovery process options, we envision a project with the potential to be put into production quickly and generate the cash flow to fund the exciting exploration project at San Diego.”

Highlights of Parral: (See Press Release #10 - June 4, 2012 for more details)

  • 37,100,000 Measured/Indicated Silver Equivalent Ounces (50:1) OR 741,000 Measured/Indicated Gold Equivalent Ounces (50:1)
  • 26,400,000 Ounces Silver
  • 214,000 Ounces of Gold
  • Metallurgical Column Tests Conclude that Heap Leaching could be Viable Option
  • Gold Extraction between 64% and 69%
  • Silver Extraction between 57% and 61%
  • Overall Resource is 21.3 Million Tonnes @ 1.08 g/t Gold Eq50 or 54 g/t Silver Eq50
  • Good Access to Grid Power, Water, Roads, Contract Services and Skilled Labour

 

Table of Mineral Resource Statement - Parral Tailings Project at AuEq 50 Cut-off of 0.4 g/t

Class/Zone Au(g/t) Ag(g/t) AuEq50(g/t) Tonnes (Mt) Total Au (Kozs) Total Ag(Mozs) AuEq50(Kozs) AgEq50(Kozs)
Zone 1                
Measured 0.37 31.1 0.99 1.7 20.8 1.7 55.8 2790
Indicated 0.38 30.7 0.99 10.2 123.5 10.1 325.7 16285
Sub-Total: 0.37 30.8 0.99 12 144.3 11.9 381.5 19075
Zone 2                
Measured 0.24 46.8 1.17 2.2 17 3.3 83.4 4170
Indicated 0.23 49 1.21 7.1 52.5 11.2 276 13800
Sub-Total: 0.23 48.4 1.2 9.3 69.5 14.5 359.4 17970
Zones 1 & 2              
Measured 0.3 39.9 1.09 4 37.8 5.1 139.2 6960
Indicated 0.32 38.2 1.08 17.3 176.1 21.3 601.7 30085
Total 0.31 38.5 1.08 21.3 213.8 26.4 740.9 37100

Notes to accompany mineral resources:

  1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
  2. Mineral resources stated at an AuEq 50 cut-off of 0.4 g/t. This is based on an opex estimate of $11.00/t treated, Au price of $1,400/oz and an AuEq recovery of 56%.
  3. The figures in the table may not compute exactly due to rounding.
  4. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

 

Mr. David R. Duncan P.Geo is the qualified person as defined by National Instrument 43-101 and is responsible for the geological information from the NI 43-101 report pertaining to the Parral Tailings project contained in this release.  Mr. Ramon Luna P.Geo is the qualified person as defined by National Instrument 43-101 and is responsible for the geological information pertaining to the San Diego Project portion 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)