TSX:GGD

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

Breccia Hill

Located within the company's San Diego Project, The Breccia Hill "Open Pit Target" contains multiple geological exploration targets each representing potential bulk mineable and / or underground targets. Surface and underground samples have been gathered within the area and numerous unexplored targets still remain providing excellent potential for long-term exploration upside within this area alone.

The Company has taken a total of 918 samples within the open pit target area and the arithmetic average assay of all 918 samples is 1.23 g/t gold and 13.15 g/t silver.

Initial drill results from Breccia Hill intercepted gold and silver mineralization over significant widths in a breccia that when drilled was discovered to be in a larger polymetalic stockwork zone. The polymetalic zone intercepted significant mineralization (between 20m and 447.9m of intercept length) of low grade copper and molybdenum within a large stockwork zone in the footwall of Breccia Hill. Given the discovery of the stockwork footwall zones and the wide zones of copper/molybdenum the company has concluded that the mineralized system at Breccia Hill is much larger than first thought. The company's geological team has interpreted the style of mineralization to potentially be part of a porphyry system that may be below or adjacent to Breccia Hill. The zone is open along strike and to depth below the valley floor.

See Tables Below for our most recent results:

 

Gold and Silver Results from drilling at Breccia Hill from January 17, 2012 Press Release

Drill Hole From
(m)
To
(m)
Interval
(m)
True Width
(m)
Au
(g/t)
Ag
(g/t)
Gold Equivalent*
(g/t)
GG11 49 154 106 84 1.98 20.5 2.43
Including 49 63 14 13 3.56 10.6 3.79
Including 81 154 73 55 2.18 26.8 2.77
GG10 0 62.3 62.3 40 0.2 11 0.44
GG10 330.5 338.5 8 6 0.05 25 0.6
GG9 0 129 129 70 1.18 13.5 1.47
Including 13 44 31 17 3.23 31 3.9
Including 81 113 32 23 1.21 9.5 1.41
GG8 0 29 29 20 0.15 11.2 0.39
GG7 0 50 50 40 0.76 11.1 1
Including 24.6 33 8.4 7 3.83 24 4.35
GG7 89.6 101 11.4 10.5 1.78 16.1 2.12
GG6 0 33 33 30 0.3 10.5 0.52

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

 

Gold and Silver Results from drilling at Breccia Hill from October 25, 2011 Press Release

Drill Hole From
(m)
To
(m)
Interval
(m)
True Width
(m)
Au
(g/t)
Ag
(g/t)
Gold Equivalent
(g/t)
GG1 0 56.65 56.65 54 0.16 41 1.05
Including 18 38 20 18 0.29 94.7 2.35
GG2 2.9 183.5 180.6 100 0.12 37 0.92
Including 49.7 72 22.3 14 0.4 90.3 2.36
and 108 153 45 25 0.12 68.5 1.61
GG3 0 60 60 50 0.11 18.9 0.52
GG4 0 74 74 45 0.08 8.67 0.27
and 127 152 25 15 0.07 35.3 0.84
GG5 0 106 106 95 1.22 12.1 1.48
Including 8 27 19 17 1.72 29.1 2.35
Including 38 46 8 7 1.8 10.8 2.03
Including 57 77 20 18 2.23 9.42 2.43

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

 

Copper Results

Hole From
(m)
To
(m)
Interval
(m)
Cu
(%)
GG1 0 447.9 447.9 0.09
including 18 38 20 0.4
GG2 0 237 237 0.16
and 237 436.5 199.5 0.06
GG3 16 227 211 0.1
GG4 0 272 272 0.05
including 130 154 24 0.15
GG5 0 241 241 0.08

True width is not yet determined. The chart represents core intercepts. The orientation of the mineralization is not yet determined. (Metallurgical recoveries and net smelter returns are assumed to be 100%)

 

Molybdenum Results

Hole From
(m)
To
(m)
Interval
(m)
Mo
(%)
GG1 89.05 169.15 80.1 0.01
GG2 184.5 237 52.5 0.01
and 237 436.5 199.5 0.026
GG3 122.8 158.1 35.3 0.0087
GG4 151 278.3 127.3 0.01
GG5 Awaiting Assays

True width is not yet determined. The chart represents core intercepts. The orientation of the mineralization is not yet determined. (Metallurgical recoveries and net smelter returns are assumed to be 100%)

 

Coordinates of the Initial 5 Drill Holes

HOLE_ID EAST NORTH ELEV AZ DIP DEPTH
GGS-0001 461086 2585168 1634 270 -45 447.9
GGS-0002 461086 2585168 1634 270 -75 446.2
GGS-0003 461082 2585193 1634 270 -45 224.77
GGS-0004 461082 2585193 1634 270 -75 278.3
GGS-0005 460898 2585235 1760 115 -45 253.5

 

Trenching results From July 20, 2011 Press Release

Sample True Width
(m)
Gold Equivalent
( g/t)
Gold
(g/t)
Silver
(g/t)
SDL-29 18 1.31 0.89 19.32
SDL-30 14 0.31 0.13 8.4
SDL-31 27.4 1.44 0.78 30.55
SDL-32 2 1.34 0.99 16.33
SDL-33 13.65 0.4 0.21 8.56
SDL-35 1.2 3.66 3.08 26.5
SDL-36 1.52 12 11.37 28.75
SDL-37 2.33 14.18 12.78 64.5
SDL-38 2 12.06 9.48 118.66
SDL-39 2 9.68 9.04 29.66
SDL-40 4 4.81 4.22 27.25
SDL-43 1 1.51 1.21 14
SDL-44 1 30.26 27.3 136
SDL-45 1 8.72 7.98 34
SDL-48 1 19.48 18.98 23
SDL-48 1 1.84 1.2 29.64
SDL-49 2 4.17 3.83 15.86
SDL-51 5 9.2 7.75 66.6
SDL-52 2 30.19 23.86 291.33
SDL-53 2 7.28 6.06 56
SDL-54 2 6.47 5.82 30
SDL-55 & 56 1 3.42 3.04 17.31
SDL-57 to 59 1 5.47 4.89 26.66

Note: Some samples were taken outside the Breccia Hill Open Pit Alteration Zone. SDL-34, 41, 42, 46, 47, 50, and 60 – 69 – were low-grade.
Silver/Gold ratio of 46:1 used for Gold Equivalent. (Metallurgical recoveries and net smelter returns are assumed to be 100%)

 

Sample Protocol and Trench Techniques

Samples were collected on surface and underground with hammer and chisel along a continuous line of exposed rock. Fragments or chip samples from a channel approximately 5cm or less in depth were collected in numbered plastic sample bags, and approximately 2 to 3 kg of rock was collected. Sample intervals are marked on the rock with spray paint along with the sample number. All samples collected by GoGold were supervised by Ramon Luna P.Geo. These samples were bagged, tagged and sealed at the sample site and delivered to ACTLAB in Zacatecas, Mexico.

All samples were processed by method (A.A) Atomic Absorption FAG323 and ICP14. All samples were first assayed by method FAG323 for gold and silver which has detection limits for Au of 3 g/t and Ag 5 g/t. A 30g sample was assayed by Fire Assay with an AAS finish for Au and a gravimetric finish for Ag.

Core Samples

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 split using an impact splitter with one half of the core being bagged and tagged for assay. The other half is returned to the core trays for storage.

The current drilling is sampled at 3.0 metre lengths until the stockwork beside the quartz breccia/vein is reached. The sample length is reduced to 1.5 metres when in the stockwork zone, one metre in the quartz breccia/vein section and remains at one metre to the end of the hole.

Lab Preparation

The sealed and bagged 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 (106 um). 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 core continues to arrive.

 

Mr. Ramon Luna P.Geo is the qualified person as defined by National Instrument 43-101.