TSX:GGD

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

GoGold Drills 8.80 g/t gold over 37.6 metres at Dora Pit along with Numerous Near Surface High Grade Gold Intercepts At Its Santa Gertrudis Gold Mine

NEWS RELEASE

May 5, 2015
PR#08-2015
Trading Symbol: TSX: GGD
Shares Issued: 162,072,003


GoGold Drills 8.80 g/t gold over 37.6 metres at Dora Pit along with Numerous Near Surface High Grade Gold Intercepts At Its Santa Gertrudis Gold Mine


GoGold Resources Inc. (TSX: GGD) (“GoGold”) is pleased to announce that it has drilled numerous high grade gold drill holes in the proposed open pit zones at its Santa Gertrudis Gold Mine located in Sonora state Mexico. The company is continuing to advance Santa Gertrudis to reestablish production. The drilling was designed to confirm historic mineralization and to test targets in the immediate vicinity of the open pit resource in the Pre-Economic Assessment (“PEA”) (See Press Release dated September 10, 2014). Hole GGDOR-010 (8.80 g/t gold over 37.6 metres) along with hole GGDOR-001 (6.79 g/t gold over 38.4 metres) confirm the down dip high grade extension at the Dora Pit structure and also confirms that the Oxide zone continues below the previously thought depth of the Oxide mineralization. These holes confirmed the higher grades at the Dora structure and identified the material as mostly Oxide. The past mining of the oxide material located immediately above this intercept had reported 75% recoveries on a conventional heap leach with a crush size of four inches.

Additionally, other significant holes have been drilled at the Corral zone and Cristina zone with highlights that include 17 metres of 3.58 g/t gold at Corral and 31.4 metres of 1.18 g/t gold at Cristina. These three targets have been identified as the initial pits the company could restart mining and should represent the first four years of feed. Construction is expected to commence immediately following the completion of final engineering of the heap leach pad and the processing plant design.  See chart below for the full results from the new drilling at Santa Gertrudis:

Highlights from Three In Pit Deposits in the PEA:
(See Table 1. Below for Details)

Dora Deposit
Hole GGDOR-001 intercepted 6.79 g/t gold over 38.4 metres
Hole GGDOR-008 intercepted 8.21 g/t gold over 6.7 metres
Hole GGDOR-010 intercepted 8.80 g/t gold over 37.6 metres
Hole GGDOR-011 intercepted 4.60 g/t gold over 21.8 metres

Corral Deposit
Hole GGC0R-009 intercepted 5.58 g/t gold over 6.5 metres
Hole GGC0R-011 intercepted 3.58 g/t gold over 17.2 metres

Cristina Deposit
Hole GGCR-001 intercepted 1.17 g/t gold over 37.7 metres
Hole GGCR-002 intercepted 1.04 g/t gold over 44.9 metres
Hole GGCR-004 intercepted 1.18 g/t gold over 31.4 metres

 

Table 1. Summary of Recent Santa Gertrudis Drilling Results:

Dora Deposit
Hole ID Comment From (m) To (m) Length (m) Au g/t
GGDOR-001   124 162.4 38.4 6.79
  including 124 149.2 25.3 8.07
  including 136.7 145.5 8.9 14.57
  and 151.4 165.4 14 4.09
GGDOR-004   110.8 114.8 4 3.67
  and 124.8 138 13.2 1.99
  including 124.8 127.8 3 4.27
  and 155.5 159.5 4 1.47
GGDOR-008   85.4 92.1 6.7 8.21
  including 85.4 90.1 4.7 11.5
GGDOR-009   119 135.8 16.8 1.35
GGDOR-010   118.7 156.3 37.6 8.8
  including 120.5 134.7 14.3 14.73
  including 145.5 153.5 8 9.3
GGDOR-011   117 138.8 21.8 4.6
  including 119.3 125.1 5.8 8.34
  including 133.1 138.8 5.8 6.42
  and 144.9 148 3.1 4.06

 

Corral Deposit
Hole ID Comment From (m) To (m) Length (m) Au g/t
GGCOR-003   146 158.1 12.1 1.32
  including 146 148 2 2.97
GGCOR-005   75.3 85.7 10.4 1.63
  including 77.1 79.7 2.6 5.08
GGCOR-008   177.6 183.4 5.8 3.35
GGCOR-009   80.5 89.5 9 1.26
  and 137.4 143.9 6.5 5.58
GGCOR-010   24.4 28.9 4.5 1.74
  and 49.4 53.4 4 0.98
  and 71.5 78.5 7 2.9
  including 71.5 74.5 3 5.96
GGCOR-011   41.8 43.6 1.8 2.08
  and 48.7 65.9 17.2 3.58
  including 56.8 61 4.3 10.1
GGCOR-012   64.7 66.7 2 3.21
  and 75.2 81.9 6.7 2.99
GGCOR-013   0 3 3 5.48
    108.4 112 3.6 1.19

 

Cristina Deposit
Hole ID Comment From (m) To (m) Length (m) Au g/t
GGCR-001   0 91.1 91.1 0.67
  including 52.9 90.6 37.7 1.17
GGCR-002   18.9 101.1 82.3 0.85
  including 53.1 98 44.9 1.04
GGCR-003   7.2 61.2 53 0.23
GGCR-004   0 94.7 94.7 0.88
  including 62.2 93.5 31.4 1.18
GGCR-005   0 77.6 77.6 0.59
  including 40.6 77.6 37 0.9
GGCR-006   0 51.3 51.3 0.58
  including 15.9 42.6 26.7 0.89
GGCR-007   2 29.7 27.7 0.54
  including 14.4 29.2 14.8 0.86
GGCR-008   0 20.5 20.5 0.45
GGCR-009   20.5 24.1 3.6 0.3
GGCR-010   22.3 35.7 13.4 0.42
GGCR-011   0 6.5 6.5 1.13
  and 19.3 30.3 11 0.4
GGCR-012   0 15.1 15.1 0.4
  and 19.6 31.5 11.9 0.29
GGCR-013   2.5 22.5 20 0.29
GGCR-014   2.5 39.5 37 0.49
  including 19.4 38.5 19.1 0.75
GGCR-015   2.3 10.9 8.6 0.34
GGCR-016   1 9 8 0.22
GGCR-017   12 29.2 17.2 0.38
  including 19.4 24.4 5 0.75
GGCR-019   4.6 23.6 19 0.27
  including 19.6 23.6 4 0.71
GGCR-021   54.5 57.5 3 3.1
GGCR-022   3 29 26 0.25
  and 33 111.9 78.9 0.34
  including 59 68 9 0.81
GGCR-023   61 124.5 63.5 0.5
  including 91.7 111 19.3 0.8
GGCR-024   41 84.6 43.6 0.35
  including 61.7 74.8 13.1 0.55
GGCR-025   20.6 28.9 38.4 0.52

 

Hole ID Comment From (m) To (m) Length (m) Au g/t
GGCR-026   6 43 37 0.54
  including 13.9 35.7 21.8 0.72
GGCR-027   29.6 77.4 47.8 0.24
GGCR-028   20 57.8 37.8 0.64
  including 28.2 51.8 23.7 0.74
GGCR-030   4 10.1 6.1 0.91
  and 27.9 91.8 63.9 0.67
  including 58.7 91 32.4 0.99
GGCR-031   3 9 6 0.94
  and 27 36 9 0.67
  and 53 119.6 66.6 0.44
  including 58.8 68.7 9.9 0.78
GGCR-032   22.2 49.1 27 0.57

True width has not been calculated for each individual intercept, but true width is generally estimated at 85%-95% of drilled width.  Metallurgical recoveries and net smelter returns are assumed to be 100%. GGDOR 003, 005, 006, 007, GGCOR 001, 004 & GGCR 018, 020, 021, 029 did not contain significant assays.

 

The diamond drilling programs at Dora, Corral and Cristina deposits were designed to confirm the resource and reserve models, obtain fresh material for metallurgical testwork, and obtain geotechnical information for pit slope design and crushing index testwork.  Sixty six (66) diamond drill holes totaling 6,748.3 metres of HQ size core were completed in the Phase 1 program.  Four (4) geotechnical diamond drill holes totaling 505 metres of HQ3 triple tube core with a core-orienting system to collect structural data have also been completed to date under the supervision of Golder Associates.  Eight (8) additional geotechnical holes and seven (7) PQ-size diamond drill holes for crushing index testwork remain to be drilled.

On March 2nd 2015 the company announced that it had received the environmental permit allowing development of the past producing Santa Gertrudis gold mine from the Mexican Department of Environment (Semarnat). The permit included acceptance of the environmental impact assessment for its Santa Gertrudis gold mine.

Santa Gertrudis has a resource of 810,000 oz Indicated (23.3 Mt @ 1.08 g/t Au) & 255,000 oz Inferred (7.7 Mt @ 1.02 g/t Au) A Pre-Economic Assessment (“PEA”) (See Press Release dated September 10, 2014) was completed with a pre-tax internal rate of return (“IRR”) of 54%. All in Sustaining Cash Cost per ounce of gold was calculated to be $699 for life of mine (“LOM”). The study projects an initial capital cost of only $32million USD and a LOM of 12 years with an average annual production of 57,000 ounces of gold. The mine production is planned at 7,500 tonnes per day (“tpd”) on a conventional heap leach with a sustaining capital of only $18 million over LOM. The Preliminary Economic Assessment Study was prepared by P&E Group of Canada, in accordance with the requirements of Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects”. (“NI 43-101”)

 

Table 2. Coordinates of Santa Gertrudis Drill Holes

Hole Number Easting Northing Elevation Azimuth Dip Length
GGDOR-001 543109 3387166 1378 60 -45 180
GGDOR-002 543109 3387166 1378 60 -70 184.4
GGDOR-003 543109 3387166 1378 60 -80 195
GGDOR-5A 543100 3387190 1380 60 -70 37
GGDOR-004 543100 3387190 1380 60 -50 191.7
GGDOR-005 543100 3387190 1380 60 -80 186
GGDOR-006 543076 3387262 1381 60 -75 180
GGDOR-007 543283 3387391 1379 179 -50 130.7
GGDOR-008 543283 3387391 1379 179 -65 150.3
GGDOR-009 543109 3387166 1378 60 -53 180.1
GGDOR-010 543115 3387158 1377 60 -40 160
GGDOR-011 543115 3387158 1377 60 -53 160.5
GGDOR-012 543098 3387194 1379 60 -45 160.5
GGDOR-013 543249 3387400 1390 151 -45 150.1
GGDOR-014 543249 3387400 1390 151 -45 143.45
GGDOR-015 543249 3387400 1390 151 -70 150.1
Total Meters 2246.3
GGSM-001 543965 3385226 1314 90 -45 100.6
GGSM-002 543960 3385178 1326 90 -45 67.1
GGSM-003 543825 3385056 1304 90 -45 193.95
GGSM-004 543926 3385053 1327 90 -45 100.25
GGSM-005 543971 3384950 1314 90 -45 100.35
Total Meters 562.25
GGCR-001 544206 3384308 1382 60 -80 136
GGCR-002 544159 3384327 1367 60 -75 130.5
GGCR-003 544115 3384302 1347 360 -90 187.4
GGCR-004 544118 3384352 1348 60 -60 157.4
GGCR-005 544173 3384376 1366 60 -60 105.6
GGCR-006 544212 3384399 1367 60 -60 84.1
GGCR-007 544282 3384194 1352 60 -62 71.75
GGCR-008 544312 3384207 1354 60 -60 45
GGCR-009-A 544231 3384207 1350 60 -60 44.6
GGCR-009 544231 3384207 1350 60 -60 73.45
GGCR-010 544257 3384222 1354 60 -45 69.4
GGCR-011 544243 3384416 1370 60 -60 44.15
GGCR-012 544238 3384465 1372 60 -60 60.7
GGCR-013 544264 3384480 1382 60 -60 55.05
GGCR-014 544201 3384489 1359 60 -60 52
GGCR-015 544228 3384505 1370 60 -56 45.65
GGCR-016 544150 3384507 1345 60 -61 52.15
GGCR-017 544182 3384525 1352 60 -65 40.6
GGCR-018 544100 3384523 1344 60 -61 75
GGCR-019 544173 3384566 1351 60 -61 51.9
GGCR-020 544038 3384557 1337 60 -61 95.05
GGCR-021 544077 3384580 1334 60 -60 74.5
GGCR-022 544132 3384334 1356 60 -82 128.7
GGCR-023 544178 3384246 1368 0 -90 140.5
GGCR-024 544178 3384130 1340 60 -60 100.4
GGCR-025 544242 3384167 1346 60 -60 62.7
GGCR-026 544281 3384144 1346 60 -72 66.2
GGCR-027 544197 3384095 1335 60 -74 103.95
GGCR-028 544236 3384118 1341 60 -70 73.45
GGCR-029 544233 3384000 1333 60 -60 85.95
GGCR-030 544191 3384276 1377 60 -64 122.25
GGCR-031 544171 3384288 1371 0 -90 135.5
GGCR-032 544226 3384088 1337 0 -90 85.3
Total Meters 2055.85
GGCOR-001 544197 3384095 1481 60 -45 110.4
GGCOR-002 546947 3386620 1479 130 60 136.9
GGCOR-003 546881 3386582 1468 60 -60 188.3
GGCOR-004 547013 3386572 1475 60 -55 200.85
GGCOR-005 546978 3386580 1473 60 -45 118.3
GGCOR-006 546937 3386644 1485 60 -55 173.05
GGCOR-007 546897 3386620 1474 60 -55 203
GGCOR-008 546842 3386589 1471 60 -55 247.15
GGCOR-009 546885 3386872 1483 60 -60 169.15
GGCOR-010 546926 3386695 1484 60 -60 131.5
GGCOR-011 546885 3386729 1469 60 -50 75.2
GGCOR-012 546856 3386770 1478 60 -50 130
GGCOR-013 546824 3386752 1496 60 -50 135
GGCOR-014 546564 3386885 1510 121 -45 128.05
Total Meters 1883.8

 

Core Samples

All diamond drilling was completed using HQ size drilling tools. The drilling crew boxes the core and GoGold employees transport it to the core shack where the core is geologically logged, photographed and marked for sampling. When the sample lengths are determined the core is sawn with a diamond blade core saw with one third of the core being bagged and tagged for assay. The remaining two third portion is returned to the core trays for storage and or for metallurgical test work.

 

Lab Preparation and Assay

The sealed and tagged sample bags are transported to the ActLabs facility in Zacatecas, Mexico. ActLabs crushes the samples and prepares 200-300 gram pulp samples with ninety percent passing Tyler 150 mesh (106μm). 

The pulps are assayed for gold using a 50 gram charge by fire assay (Code 1A2-50) and over limits greater than 10 grams per tonne are re-assayed using a gravimetric finish (Code 1A3-50). Silver and multi-element analysis is completed using total digestion (Code 1F2 Total Digestion ICP).

 

Quality Assurance / Quality Control and Data Verification

Quality assurance and quality control procedures include the systematic insertion of blanks, standards and duplicates into the sample strings. The results of the assaying of the QA/QC material included in each batch are tracked to ensure the integrity of the assay data.  All results stated in this announcement have passed GoGold’s quality assurance and quality control ("QA/QC") protocols.

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,
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:
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to buy of any of GoGold’s securities in the United States.

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 private placement and debt financing on GoGold and the Parral tailings project, 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.