TSX:GGD

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

GoGold Resources Completes Metallurgical Testing on its Parral Tailings Project And Achieves Improved Recoveries From The Preliminary Results

NEWS RELEASE

November 07, 2012
PR# 26 - 2012

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


GoGold Resources Completes Metallurgical Testing on its Parral Tailings Project And Achieves Improved Recoveries From The Preliminary Results


Terry Coughlan, President and CEO of GoGold Resources Inc. (“GoGold” or the “Company”) (TSX-V: GGD), is pleased to announce that metallurgical test work for the Parral Tailings Project has been recently completed. The results from the final column leach tests have returned an average leach extraction of 67% for gold and 61% for silver. Kappes, Cassiday and Associates (KCA) of Reno, Nevada, a specialized consulting firm in the evaluation and testing of heap leach projects, were contracted to complete the test work.

For commercial design purposes, the resulting column leach extraction values have been adjusted downwards, according to industry norm to 65% for gold and 58% for silver which represent a significant improvement from the 61% and 54%, respectively, used in the previously announced resource report. The recovery values have been weighted according to the tonnages and recoveries from the different zones in the Parral tailings deposit resource outlined below. The leaching reagent consumptions such as cyanide have been determined directly from the column tests for design purposes. The leach pad design has been based on a 60 day cycle with recoveries and reagent consumptions determined accordingly. Additional metal recovery during the draining of the leach pads after the 60 day period has not been included and therefore recoveries could be higher.

The final metallurgy will be incorporated into the pre-feasibility study (“Study”) of the Parral Tailings Project in Chihuahua, Mexico (“Project”), which is advancing under the direction of lead consultant, MDM Engineering of South Africa. The processing plant for the Study is based on an agglomerated heap leach followed by a conventional Merrill-Crowe (zinc precipitation) process which is common for the treatment of high silver ores such as the Parral tailings. In addition to gold and silver, the test work has shown there will also be significant copper leaching, and the Study is assessing the possibility of recovering a saleable chemical form of copper as a by-product.

The KCA test program consisted of agglomeration tests, bottle roll leach tests, column (heap) leach tests and all relevant chemical analyses. The test samples represented drill-hole material covering each of the three identified zones of the tailings deposit (Zone 1, Zone 2A and Zone 2B). The work was comprehensive and detailed, giving the Company further confidence in the economics of the project that will be released in the study.

In addition to the metallurgical work, the other aspects of the Study that are on-going include the environmental base line and impact study, mining and reserves optimization and scheduling, site geo-technical and the preparation of the capital and operating estimates. GoGold believes the Project would bring significant social and environmental benefit to the area and the Town of Parral. The tailings pile resides within town limits which causes on-going dusting and land use concerns. The approach is to transport the material from the Town to a nearby selected site for treatment and final reclamation.

Parral Resource Table

The overall grade of the resource is 1.08 g/t gold equivalent (50:1) (38.5 g/t silver and 0.31 g/t gold) in 21,300,000 tonnes of tailings for contained ounces of gold of 214,000 and contained ounces of silver of 26,400,000.

Table 1.1 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 a 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 Dodd, FSAIMM of MDM Engineering is a qualified person as defined by National Instrument 43-101 and is responsible for the Study technical information contained in this release.  D.R. Duncan, P.Geo is the qualified person as defined by National Instrument 43-101 and is responsible for the preparation of the NI-43-101 Mineral Resource information in this press 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)