May 30, 2019
Trading Symbol: TSX: GGD
GoGold Completes 23 Trenches Identifying Mineralization for 3.2km Along Strike and Mobilizes Additional Drill Rig
Halifax, NS – GoGold Resources Inc. (TSX: GGD) (“GoGold”, “the Company”) is pleased to report the assay results from 23 exploration trenches completed at the Los Ricos Property identifying mineralization for 1.5 km along strike to the southeast of the El Abra zone.
Brad Langille, President and CEO, states “we are very pleased to see the results from our geological mapping, sampling and trenching program has defined at least 5 new targets, where we are currently mobilizing an additional drilling rig, along strike to the south of the former Cinco Minas El Abra underground mine. The largest zone is known as Cerro Colorado and extends for a strike length of 500m. With these widths and grades at surface, we feel there is an excellent chance to discover new high-grade deposits along the Los Ricos vein system that have not been previously mined. Based on our trenching and mapping to date, the limited historical drilling in this area may have missed the mineralized zone which we have identified.”
GoGold commenced a diamond drilling program of HQ size core in conjunction with a field program of geological mapping, sampling and trenching on the property. With the drilling program testing the El Abra zone which has historical underground workings, the surface exploration program has been focused on following the mineralized Los Ricos structure along strike to the southeast towards the Cerro Colorado prospect. Gold and silver mineralization has been exposed in numerous locales along the system in surface outcrops, trenches and historical shallow pits and workings over a distance of 3.2km, with the mineralized zone widths varying between 1 and 25 metres, averaging between 10 to 15 metres, dipping west at approximately 70 degrees. A total of 930 samples varying in length between 1m to 2m have been collected and sent for gold and silver assay and multi-element ICP analysis.
The drilling results from the first 10 holes at the El Abra zone have shown excellent results as previously announced on May 14, May 1, April 24, and April 17. These drill results focused on drilling the halo around historical underground workings mined in the early 1900s. The Company has reviewed historical mining data showing that in the early 1900s the operators mined approximately 218,000 gold and 31.6 million silver ounces for 640,000 gold equivalent ounces at an average grade of approximately 10 g/t gold equivalent. The trenching results below will direct the Company’s next phase of drilling with a goal to discover high-grade deposits similar to the El Abra deposit.
Figure 1 provides a 3D view of the Los Ricos property surrounding the historical underground workings at the El Abra zone, with the location of the other zones shown.
Figure 1: Los Ricos Zones 3D View
Highlights of the trenching program at Cerro Colorado include Composite 2, at an estimated true length of 16.0m and gold equivalent grade of 5.02 g/t, and Composite 5 at a length of 18.0m and gold equivalent grade of 4.45 g/t. Full details of the trench intersections are provided in Table 1 and Figure 2 below.
Table 1: List of Trench Intersections at Cerro Colorado
|Trench Name||Length1 (m)||True Length2 (m)||Grade - Au (g/t)||Grade - Ag (g/t)||Grade – AuEq3 (g/t)|
- Not true length
- Estimated true length
- AuEq converted using a silver to gold ratio of 75:1
Figure 2: Location Map for Cerro Colorado Trenches
In addition to the strong results at Cerro Colorado, trenching was completed at other zones on the property including San Pedro which intersected 8.8m of 3.66 g/t gold equivalent, Las Lamas which intersected 1.0m of 42.60 g/t gold equivalent, and at El Abra, with results including 10.1m at 3.61 g/t gold equivalent. Details of all trench intersections are shown in Table 2 below, while Figure 1 shows the locations of each zone on the property.
Table 2: List of Other Trench Intersections
|Zone||Trench Name||Length1 (m)||True Length2 (m)||Grade - Au (g/t)||Grade - Ag (g/t)||Grade – AuEq3 (g/t)|
|Las Lamas||Composite 9||10||9.1||1.73||112.2||3.23|
|Las Lamas||Composite 10||1.5||1||29.5||986.3||42.6|
|Las Lamas||Composite 11||17.7||10.5||0.39||62.8||1.23|
|Las Lamas||Composite 12||4||3.5||1.04||66||1.92|
|Las Lamas||Composite 13||7.8||3.3||0.62||75.2||1.63|
|Las Lamas||Composite 14||1.6||1.6||1.98||272.4||5.61|
|El Abra||Composite 15||57||16||0.55||163.3||2.73|
|El Abra||Composite 16||3.3||2.9||2.41||356.3||7.16|
|El Abra||Composite 17||20.6||17.6||0.76||120.8||2.37|
|El Abra||Composite 18||12||10.1||1.42||164.5||3.61|
|San Pedro||Composite 19||12||8.8||1.95||128.6||3.66|
|San Pedro||Composite 20||5.5||1.9||3.25||389.1||8.44|
|San Pedro||Composite 21||5.8||3.7||0.26||68.7||1.18|
|San Pedro||Composite 22||3.2||1.4||0.23||55.5||0.97|
|San Pedro||Composite 23||18.9||12.6||0.24||59.4||1.03|
- Not true length
- Estimated true length
- AuEq converted using a silver to gold ratio of 75:1
Lab Preparation and Assay
The channel samples are collected from surface outcrops and exposures in hand or mechanically dug trenches. After mapping and photographing the trench, the geologists mark out the sample intervals and supervise the collection of the samples. Some of the trenches are suspended either due to talus debris or large boulders on the hillside.
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). Over limits greater than 100 grams per tonne silver are re-assayed using a gravimetric finish (Code 8-Ag FA-GRAV Ag).
Quality Assurance / Quality Control and Data Verification
Quality assurance and quality control ("QA/QC") procedures monitor the chain-of-custody of the samples and includes the systematic insertion and monitoring of appropriate reference materials (certified standards, blanks 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 QA/QC protocols.
Mr. David Duncan, P. Geo. 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 operates the Parral Tailings project in the state of Chihuahua and has the Los Ricos exploration project in the state of Jalisco. 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 Los Ricos 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 project 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.