November 10, 2014
Trading Symbol: TSX:GGD
GoGold Provides Commissioning Update on the Parral Tailings Operation
GoGold Resources Ltd. (TSX: GGD), (GoGold), is pleased to provide an update on the commissioning of its Parral Tailings Project in Mexico. The initial construction is complete with total costs of approximately $32.5 million which favorably compares to the $35 million in the pre-feasibility study (PFS). Commissioning of the main plant began in June 2014 and production rates have consistently increased during the commissioning period. Key performance indicators at the mine during the quarter are as follows:
Table 1. Key Performance Indicators
|Key performance indicator*:||July||August||September|
|Total tonnes placed||68,289||76,990||84,858|
|Gold production (oz)||31||66||69|
|Silver production (oz)||17,138||40,788||46,518|
|Silver equivalent production (oz)||19,107||45,119||51,440|
|Cash costs per Silver ounce**||$5.33||$5.38||$4.92|
|Cash costs per Silver Equivalent ounce***||$6.91||$6.73||$6.05|
|Realized silver price||$20.69||$19.49||$16.73|
|Mine Site EBITDA||$251,397||$549,180||$523,547|
|Mine Site free cash flow||-$10,601||$237,534||$196,909|
* Internal unaudited ** Using Gold as a bi-product credit *** Gold is converted using actual realized prices
As anticipated in the PFS, the commissioning phase is expected to take six months with Commercial Production projected to be declared by the end of calendar 2014. As noted in Table 1 above, the key metrics have continued to improve in accordance with the PFS. In August and September 2014, the Parral Project generated free operating cash flow and should increase over the next quarter. Cash costs are significantly lower than the PFS as indicated in the chart and as guided by the Company in the press release dated September 9, 2014. Although commissioning has been carried out during one of the most severe rainy seasons in recent history, recovery rates are in line with expectations.
Mr. Terence Coughlan, P.Geo is the qualified person as defined by National Instrument 43-101 and has reviewed 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
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.