October 9, 2019
Trading Symbol: TSX: GGD
Shares Outstanding: 185,823,461
GoGold Reports Record Quarterly Production of 580,711 Silver Equivalent Ounces, Exceeding Previous Record by 29%
Halifax, NS – GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) (“GoGold”, “the Company”) is pleased to report record production for the quarter ending September 30, 2019 of 580,711 silver equivalent ounces, consisting of 326,625 silver ounces and 2,921 gold ounces, representing an increase of 29% from the previous quarter and previous record of 451,011 silver equivalent ounces.
Production for the fiscal year ending September 30, 2019 was 1,846,835 silver equivalent ounces, consisting of 1,059,438 silver ounces and 9,149 gold ounces. This represents an annual record and is an increase over the prior year record of 42%, or 547,421 silver equivalent ounces.
“This marks the third consecutive quarter where we’ve set a production record, with a substantial increase this quarter of 130,000 ounces from the past quarter, in what has typically been our weakest quarter of the year due to the rainy season,” said Brad Langille, President and CEO. “This has been by far our strongest year at Parral, with production of 1.85 million ounces, over 500,000 ounces higher than last year. With Parral running at these rates, the exceptional results that we’re seeing at our Los Ricos project, and the strengthening of the gold and silver markets, it’s an exciting time for us as we work to build value for our shareholders.”
Construction on the SART continues to be on schedule, with the foundation and significant concrete work completed, and many key components being installed. Construction is scheduled to be completed prior to the end of 2019. The SART plant is expected to bring important economic and technical benefits to the Parral facility. The main economic drivers are the recovery of a high-grade saleable copper sulfide product, the re-generation of cyanide, which is the largest single operating cost at Parral, and the improvement of the leaching efficiency of the heap.
Table 1: Quarterly Production Summary
|Quarter Ended||Sep 2018||Dec 2018||Mar 2019||Jun 2019||Sep 2019|
|Silver Production (oz)||105,623||167,974||288,693||250,073||326,625|
|Gold Production (oz)||1,665||1,858||1,613||2,281||2,921|
|Silver Equivalent Production (oz)1||240,939||325,148||424,210||451,011||580,711|
- “Silver equivalent production” include gold ounces produced and sold converted to a silver equivalent based on a ratio of the average market metal price for each period. The ratio for each of the periods presented was: Sep 2018 – 81, Dec 2018 – 85, Mar 2019 – 84, Jun 2019 – 88, Sep 2019 – 87.
Table 2: Annual Production Summary
|Year Ended||Sep 2017||Sep 2018||Sep 2019|
|Silver Production (oz)||568,306||774,600||1,059,438|
|Gold Production (oz)||7,961||6,650||9,149|
|Silver Equivalent Production (oz)1||1,146,574||1,300,414||1,847,835|
- “Silver equivalent production” include gold ounces produced and sold converted to a silver equivalent based on a ratio of the average market metal price for each period. The ratio for each of the periods presented was: Sep 2017 – 73, Sep 2018 – 79, Sep 2019 – 86.
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 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.