October 23, 2018
Trading Symbol: TSX: GGD
GoGold Reports Parral Production and Sales for Quarter ending September 30, 2018
Halifax, NS – GoGold Resources Inc. (TSX: GGD) (“GoGold”, “the Company”) announces sales of 241,774 silver equivalent ounces and produced 105,623 ounces of silver and 1,665 ounces of gold for 240,939 silver equivalent ounces at the Parral project during the quarter ended September 30, 2018.
Santa Gertrudis Royalty Sale
The Santa Gertrudis royalty sale to Metalla Royalty & Streaming Ltd. continues to move forward with a closing expected in the current quarter. This will add an additional $12 million to the Company’s already strong balance sheet. The Company continues to have a strong balance sheet, no debt, and a fully constructed operation with a ten year mine life.
In April 2018 the Company began irrigating the second lift on a non-compacted first lift to test whether compaction of the first lift is required. The results of this test concluded that compaction of the first lift will be required as without compaction, there is a delay in the recovery of metal from the material processed above on the second lift. During the quarter, the Company began compacting the first lift and placed drainage pipes on top before the second lift is placed. This will replicate single lift leaching, which has been proven to perform well.
The Company will continue stacking on the first lift or above a compacted lower lift with additional drainage between lifts which will cause production to increase back to normal levels. This second quarter of lower production was expected due to both the test results noted above and the rainy season in Mexico. Now that the final test is concluded, and rainy season is winding down, we expect to see production increases in future quarters going forward.
Mr. Robert Harris, P.Eng. is the qualified person as defined by National Instrument 43-101 and is responsible for the technical information of this release.
About GoGold Resources
GoGold Resources (TSX: GGD) is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico. The Company’s Parral Tailings project is one of the lowest cash cost silver producers in the world. Headquartered in Halifax, NS, GoGold is building a portfolio of low cost, high margin projects. For more information visit gogoldresources.com.
For further information please contact:
T: 416 855 0435
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 Parral tailings project, the Santa Gertrudis project, future operating margins, future production and processing, and future plans and objectives of GoGold, constitute forward looking information that 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 performance of the Parral and Santa Gertrudis projects. 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 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.