TSX:GGD

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

GoGold Drills 8 Metres of 18.71 g/t Gold from Surface at its Santa Gertrudis Gold Mine Mexico and Commences Exploration on Viviana Fault

NEWS RELEASE

September 28, 2015
PR#12-2015
Trading Symbol: TSX: GGD
Shares Issued: 162,072,003


GoGold Drills 8 Metres of 18.71 g/t Gold from Surface at its Santa Gertrudis Gold Mine Mexico and Commences Exploration on Viviana Fault


GoGold Resources Inc. (TSX: GGD) (“GoGold”) is pleased to announce that Santa Gertrudis continues to deliver numerous high grade gold intercepts in the proposed open pit zones at the Santa Gertrudis Gold Mine in Sonora, Mexico. Holes reported below on the Viviana Fault structure have not been included in the previously released resource study. The company is continuing to advance Santa Gertrudis to reestablish gold production at the mine. The highlight of the new holes drilled include GGDOR-016 which intersected 17 metres of 5.35 g/t gold in the Dora Pit; GGGR-005 drilled at the Greta Ontario zone starting at surface of 8 meters of 18.71 g/t gold including 5 metres of 29 g/t gold; and GGCNW-004 in the Corral pit of 13.7 Metres of 3.22 g/t gold. The drilling was designed to confirm historic mineralization and tested targets in the immediate vicinity of the open pit resource in the PEA. See Table 1 charts below for the full results from the new drilling from Santa Gertrudis.

Table 1A: Summary of Recent Santa Gertrudis Drilling Results (Corral NW Deposit)

Hole IDCommentFrom (m)To (m)Length (m)Au (g/t)
GGCNW-001   41.8 56.0 14.3 1.53
GGCNW-003   74.7 78.7 4.0 2.42
GGCNW-004   38.0 51.7 13.7 3.22
  including 39.0 42.0 3.0 12.97
GGCNW-005   65.9 70.9 5.0 2.54
GGCNW-006   60.8 75.7 14.9 1.59
GGCNW-010   1.5 5.7 4.2 1.32
GGCNW-011   104.0 114.5 10.5 3.11
  including 105.8 108.8 3.0 6.94
GGCNW-013   89.3 92.3 3.0 1.07
GGCNW-014   91.5 94.8 3.4 2.68
  and 139.4 144.4 5.0 1.54

 

Table 1B: Summary of Recent Santa Gertrudis Drilling Results (Corral Deposit)

Hole IDCommentFrom (m)To (m)Length (m)Au (g/t)
GGCOR-017   52.1 53.1 1.0 2.38
  and 90.8 91.8 1.0 3.01
  and 150.3 154.6 4.4 0.85
GGCOR-018   87.2 88.2 1.0 14.04
  and 156.2 163.2 7.0 2.63
GGCOR-019   56.3 59.3 3.0 5.18
  and 78.3 84.2 6.0 2.03
GGCOR-020   66.4 76.6 10.2 2.42
GGCOR-021   30.4 54.2 23.8 1.50
GGCOR-022   43.0 58.7 15.7 2.64
  including 50.0 57.7 7.7 4.60

 

Table 1C: Summary of Recent Santa Gertrudis Drilling Results (Dora Deposit)

Hole IDCommentFrom (m)To (m)Length (m)Au (g/t)
GGDOR-012   133.9 140.2 6.3 1.53
GGDOR-014   142.6 153.1 10.5 3.09
GGDOR-015   100.9 109.2 8.3 2.73
GGDOR-016   129.5 146.5 17.0 5.35
  including 130.5 133.5 3.0 10.74
  including 143.5 146.5 3.0 11.41

 

Table 1D: Summary of Recent Santa Gertrudis Drilling Results (Sebastian Deposit)

Hole IDCommentFrom (m)To (m)Length (m)Au (g/t)
GGSEB-001   41.8 56.0 14.3 1.53
  including 49.8 55.0 5.3 2.61
GGSEB-002   19.4 29.2 9.8 1.06

 

Table 1E: Summary of Recent Santa Gertrudis Drilling Results (Greta Deposit)

Hole IDCommentFrom (m)To (m)Length (m)Au (g/t)
GGGR-001   1.0 6.0 5.0 3.09
  including 1.0 3.0 2.0 7.43
GGGR-002   3.6 11.6 8.1 1.57
  including 3.6 8.6 5.0 2.28
GGGR-005   0.0 8.0 8.0 18.71
  including 1.0 6.0 5.0 29.00

Note: 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%. GGGR 003, 004, GGCNW 002, 007, 008, 009, 012, GGDOR 013, did not contain significant assays.

 

Table 2: List of 2015 GoGold Drill Hole Coordinates

DepositHole IDNorthingEastingElevationAzimuthDipLength
CORRAL NW GGCNW-001 3387062.8 546628.7 1479.7 30 -45 59.2
  GGCNW-002 3387049.5 546577.4 1479.6 30 -68 100.5
  GGCNW-003 3387013.6 546574.3 1479.6 30 -56 131.8
  GGCNW-004 3387066.3 546608.3 1480.1 30 -45 80.6
  GGCNW-005 3386986.3 546608.5 1492.5 30 -59 81.0
  GGCNW-006 3387018.6 546601.5 1491.3 30 -45 98.8
  GGCNW-007 3387058.2 546556.8 1485.0 30 -60 105.5
  GGCNW-008 3387039.8 546533.6 1486.6 90 -45 60.6
  GGCNW-009 3387020.1 546515.3 1485.5 90 -45 62.3
  GGCNW-010 3387037.1 546582.4 1479.6 30 -50 120.0
  GGCNW-011 3386967.4 546570.0 1486.3 30 -56 126.2
  GGCNW-012 3386999.0 546592.7 1494.1 30 -45 130.6
  GGCNW-013 3386998.4 546592.3 1494.1 30 -61 111.4
  GGCNW-014 3386988.8 546559.8 1480.2 30 -68 171.5
               
CORRAL GGCOR-014 3386885.7 546865.6 1507.9 121 -45 128.1
  GGCOR-015 3386884.3 546918.6 1507.2 119 -45 80.4
  GGCOR-016 3386579.1 546973.3 1472.6 0 -90 151.3
  GGCOR-017 3386649.9 546855.4 1472.1 60 -57 181.8
  GGCOR-018 3386649.7 546855.1 1472.1 60 -72 200.0
  GGCOR-019 3386721.7 546933.8 1476.6 60 -45 120.3
  GGCOR-020 3386693.4 546874.0 1472.2 60 -60 160.0
  GGCOR-021 3386738.8 546902.9 1467.1 60 -45 120.1
  GGCOR-022 3386738.1 546901.6 1467.1 0 -90 100.0
               
SEBASTIAN GGSEB-001 3386490.1 546955.8 1508.6 90 -76 90.5
  GGSEB-002 3386489.9 546995.0 1504.9 90 -45 70.3
               
DORA GGDOR-012 3387198.0 543092.9 1378.7 60 -45 160.5
  GGDOR-013 3387397.4 543250.8 1389.0 151 -45 150.1
  GGDOR-014 3387401.0 543189.6 1395.7 151 -45 170.9
  GGDOR-015 3387397.9 543250.5 1389.1 151 -45 150.1
  GGDOR-016 3387405.0 543189.0 1397.0 151 -55 170.4
               
GRETA GGGR-001 3384125.0 551813.0 1695.0 0 -90 75.8
  GGGR-002 3384150.0 551823.0 1707.0 0 -90 75.0
  GGGR-003 3384096.0 551808.0 1681.0 0 -90 75.4
  GGGR-004 3384122.6 551828.6 1695.9 0 -90 23.1
  GGGR-005 3384152.5 551833.6 1708.6 0 -90 21.1

 

Exploration of the 3.8 Km Viviana Fault Zone

GoGold field teams were mobilized to map and sample the Viviana gold deposit located on the Santa Gertrudis Property.  The Viviana deposit outcrops and was evaluated by trenching along with 50 RC holes drilled in 1995/96 by Roca Roja (“the RR-series”).  High-grade oxidized gold intercepts occur in calcareous siltstones associated with the 3.8 km long, east west trending Viviana fault zone.  Roca Roja mined several thousand tonnes from the deposit before selling the property to Campbell Resources in 1999. 

In 2000, Campbell Resources drilled 20 holes (“the VV-series”) on the Viviana Norte prospect located 200 m northwest of the Viviana deposit.  These Roca Roja and Campbell drill holes were not included in the NI 43-101 resource estimate published by GoGold in September last year. Approximately mid mine life, these holes were some of the last holes released prior to ceasing operations.

President Terry Coughlan states “the high gold grades associated with the Viviana prospect make this an ideal target to define new mineral resources on the Santa Gertrudis property.  The Real Viejo and Santa Teresa gold prospects are hosted on the same stratigraphic and structural trend to northwest of Viviana deposit and will also be examined”.
These drill hole records, some of which were released in a May 2000 by Campbell, contain numerous high grade oxide gold intercepts which indicates the presence of long mineralized zones near surface along the 3.8 kilometer long east-west trending Viviana fault.

See chart below for the Highlights of some of the higher grade intercepts along the Viviana fault, Santa Gertrudis.

Table 3: Significant Gold Intersections at Viviana and Viviana Norte

Hole IDCommentFrom (m)To (m)Length (m)Au (g/t)
VV-103 Campbell 82.5 87.0 4.5 1.59
VV-106 Campbell 72.0 88.5 16.5 8.84
VV-107 Campbell 85.5 93.0 7.5 2.21
VV-109 Campbell 63.0 69.0 6.0 2.45
VV-103 Campbell 162.0 168.0 6.0 2.44
RR-192 RocaRoja 75.3 89.5 14.2 3.33
RR-135 RocaRoja 44.8 53.9 9.2 14.23
RR-146 RocaRoja 44.8 54.9 10.2 4.73
RR-149 RocaRoja 37.6 47.8 10.2 11.19
RR-166 RocaRoja 25.4 42.7 17.3 5.21
RR-172 RocaRoja 25.4 37.6 12.2 13.08
RR-175 RocaRoja 39.7 51.9 12.2 5.41
RR-190 RocaRoja 31.5 48.8 17.3 6.77
RR-191 RocaRoja 43.7 50.9 7.1 10.66
RR-201 RocaRoja 29.5 41.7 12.2 6.00

Note: 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%.

The company expects the current resource to increase as the geological team continues to identify other highly prospective areas within claim boundaries.

The company is continuing to advance Santa Gertrudis to reestablish gold production at the mine. On March 2, 2015 the company announced that it has received the environmental permit allowing development of the Santa Gertrudis gold mine from the Mexican Department of Environment (Semarnat). The permit includes 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 (Preliminary 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 $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 $18 million over LOM. The Preliminary Economic Assessment Study was prepared by P&E Mining Consultants of Canada, in accordance with the requirements of Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”).

Core Samples

All GoGold 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.

Campbell shipped samples from the Viviana Norte drilling (VV-series) to Inspectorate’s Rocky Mountain Geochemical (“RMG”) in Sparks, Nevada.  RMG used a standard sample prep to crush, split and then pulverize a subsample to 150 mesh.  RMG completed a regular Fire Assay with Atomic Absorption finish for gold on all samples. 

Campbell selected Chemex Labs S.A. de C.V. from Guadalajara, Mexico to carry out a check assay using a standard sample preparation to pulverize to approximately 150 mesh (Code 205) and a routine FIRE ASSAY on a 30 gram sample with an AA finish (Code 983) or Gravimetric finish (Code 997). Campbell also carried out a gold analysis on hole VV-106 using the Santa Gertrudis Mine Laboratory using 3 methods; Aqua Regia, Fire Assay and Hot CN.  Results from all 5 methods are in good agreement.

Samples from the Roca Roja RC holes drilled in 1996 (RR-series) on the Viviana structure were sent for Fire Assay (FA50) and Cyanide Extraction (CY210) to SGS-Xral Laboratories in Hermosillo, Mexico.  Roca Roja also completed gold analysis using the Hot CN method at their onsite Mine Assay office.

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.