July 31, 2014
Trading Symbol: TSX:GGD
Shares Issued: 147,814,830
GoGold Drills 21 Meters of 2.22 g/t Gold in Newly Discovered Zones at Santa Gertrudis
GoGold Resources Inc. (TSX: GGD), is pleased to announce new drilling results from the Santa Gertrudis Gold Mine in Sonora, Mexico. The new drilling is outside of the present resource that was announced on June 7th of this year and will be incorporated in the Preliminary Economic Assessment that is to be issued shortly on the project.
The drilling program was designed to follow-up previously untested structural breaks where they cross the favorable limestone beds that host many of the mined deposits on the property. The company’s geological team developed the targets after creating 3D models of the gold grade distribution of more than 100,000 blast holes from the 22 open pits on the property. Testing of the new targets began in late May with priority assigned to near surface, oxidized zones that can be easily added to the published mineral resource.
The first two areas tested added significant new gold drill intercepts in zones adjacent to some of the known deposits. Holes at the Rueben deposit hit new high grade mineralization of 21 meters of 2.22 grams per tonne (“g/t”) gold and a second hole intersected 7.45 meters of 11.28 g/t gold. At the Escondida deposit, drillhole GGES-010 intercepted a new zone of 48.7 meters of 0.9 g/t gold and 45.2 g/t silver including 22.4 meters of 1.77 g/t gold and 84.5 g/t silver. Drillhole GGES-009 intercepted the same zone with 10.9 meters of 2.11 g/t gold and 41.1 g/t silver (See table 1 below for details).
Table 1: New Drill Results:
|Name||Hole No.||From (m)||To (m)||Length (m)||Gold (g/t)||Silver (g/t)|
True Widths are not yet determined. Metallurgical recoveries and net smelter returns are assumed to be 100%. GGRU-003, GGES-001, GGES-002, GGES-008, GGES-011, and GGTR-001 intercepts were low grade
Santa Gertrudis Past-Producing Mine
Santa Gertrudis is a past-producing gold mine that was acquired in April 2014 as part of GoGold's purchase of Animas Resources. The original mine operated from 1991 to 2000, producing 564,000 ounces of gold at an average grade of 2.13 g/t, but ceased activities due to low gold prices. Previous operations had produced a substantial database of 2422 drill holes (250,539 metres of core and RC drilling) and more than 100,000 metres of blast holes. An historic resource estimate based on only a portion of that data suggested that a NI 43-101 compliant resource of 557,000 inferred ounces of gold remained in and around the Santa Gertrudis open pit with resources from surface to 100m depth.
In June 2014, GoGold updated the resource estimate to 609,600 ounces of gold indicated (16.4 Mt @ 1.16 g/t) and 141,400 ounces inferred (4.5 Mt @ 0.97 g/t).†
Table 2. Updated Santa Gertrudis Property Mineral Resource Estimate1,2,3,4,5
- 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.
- The quantity and grade of reported Inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource, and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
- The mineral resources in this estimate were calculated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines as prepared by the CIM Standing Committee on Reserve Definitions, as well as the requirements of National Instrument 43-101.
- All resources are reported within an optimized pit shell developed using the following economic parameters: Gold Price $1,300 per ounce. G&A cost $1.50 per tonne. Mining cost $2.00 per tonne. Processing cost $5.60 per tonne for oxides, carbonaceous oxides and mixed oxide/sulphide deposits, and $25.00 per tonne for sulphides. Process recoveries used are 75% for oxides and leach pad material, and 50% for carbonaceous oxides and mixed oxide/sulphide deposits, and 90% for sulphides. Optimized pit slopes are 50 degrees.
- The mineral resource table incorporates 35 deposits and associated optimized pit shells as well as one leach pad.
Details regarding the updated resource can be found in the June 17, 2014 press release. GoGold is continuing exploration and expects the resource to grow and for additional potential high-grade targets to be identified. Our team believes they can achieve a production decision by Q3 2014 with the goal of quickly reinstating mining. As a past producer, the Santa Gertrudis property has infrastructure in place with numerous pits already stripped with haul roads and ready to start mining.
Table 3: Coordinates of the new Santa Gertrudis drill holes
The core was either HQ or NQ in size in the surface holes. Holes were started at the larger HQ size and reduced to NQ if necessary. The drilling crew boxes the core and GoGold employees transport it to the core shack. In the core shack the core is geologically logged with sample lengths indicated. When the sample lengths are determined the core is sawn in half with a diamond blade core saw with one half of the core being bagged and tagged for assay. The other half is returned to the core trays for storage.
The sealed and tagged 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. This process is expected to continue as additional drill core continues to arrive.
Mr. David R. Duncan, 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,
Sean Tufford, Vice President, Corporate Development
GoGold Resources Inc.,
T: 902 482-1998
F: 902 442-1898
Or visit : www.gogoldresources.com
This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation.All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the impact of the debt financing on GoGold and the Parral tailings project, the use of the net proceeds of the advance, and future plans and objectives of GoGold, constitute forward-looking informationthat involve various risks and uncertainties.Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of GoGold and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates, and the ability to satisfy all conditions to funding of the second tranche under the credit agreement. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
Important factors that could cause actual results to differ materially from GoGold's expectations include exploration and development risks associated with the GoGold’s projects, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations of recovery rates and global economic conditions. For additional information with respect to risk factors applicable to GoGold, reference should be made to GoGold's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, GoGold's Annual Information Form. The forward-looking information contained in this release is made as of the date of this release and GoGold does not undertake to update publicly or revise the forward-looking information contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. No regulatory authority has approved or disapproved the adequacy or accuracy of this news release.