GoGold Resources Adds to Property Position at the San Diego Project, Durango, Mexico
/NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES OF AMERICA/
|Trading Symbol:||TSX-V: GGD|
HALIFAX, Aug. 16, 2012 /CNW/ - Terry Coughlan, President and CEO of GoGold Resources Inc. ("GoGold" or the "Company") (TSXV: GGD), is pleased to announce that it has completed an option agreement through its wholly owned Mexican subsidiary Minera Durango Dorado S.A. De C.V. ("MDD"), to acquire a 100% interest in a 2,000 hectare portion of the San Diego project known as Mina La Blanca. The area includes a past producing silver mine and has never been drilled (see details below). The Company has also purchased a 100 percent interest in two (2) additional gold and silver mining concession (the "Claims") from Mexican prospectors for total cash consideration of US$90,000. These additional concessions further increase the San Diego Project land area to 71,495 hectares.
Mina La Blanca
Prior to agreeing concluding the option to acquire Mina La Blanca, the Company conducted preliminary sampling, mapping and recognisance work. Fifty-one grab samples were collected on surface and underground in numerous veins, workings and dumps within an approximate 500 square meter area and indications of several 2 - 8 meter wide high grade silver structures have been identified.
This work returned grades as high as 0.82 grams gold per tonne (g/t) and 2,615.9 grams silver per tonne (g/t). Company geologists believe this initial mapping and sampling has shown that the mineralization encountered may be related to an intrusive body mapped in the vicinity of the high grade veins. Our geological team is on site fast tracking further evaluation of the project.
The highlights of the recognisance sampling are detailed in the table below:
Selected assay results:
|Sample Name||Au g/t||Ag g/t||Geology|
|RJC-19||0.01||82.00||stockwork in andesite|
|RJC-21||0.02||220.23||dump grab sample|
|RJC-24||0.09||271.53||stockwork in andesite|
|RJC-28||0.21||176.30||stockwork in andesite|
|RJC-29||0.13||171.16||stockwork in andesite|
|RJC-30||0.17||307.24||dump grab sample|
|RJC-31||0.28||759.76||dump grab sample|
|RJC-64||0.03||381.75||dump grab sample|
|RJC-71||0.82||233.36||dump grab sample|
- Metallurgical recoveries and net smelter returns are assumed to be 100%
- The other 25 samples collected and not shown were low grade and intermingled with the samples above
Under the terms of the option agreement for the Mina La Blanca area, GoGold will have an option to acquire a 100% interest in the property in exchange for the following:
|i.||An initial payment of US$150,000,|
|ii.||a total of six additional US$100,000 payments on September 1, 2012, October 1, 2012, November 1, 2012, February 1, 2013, May 1, 2013 and August 1, 2013; and,|
|iii.||an NSR of 1% if the price of an ounce of gold is under US$1,000, 1.5% if the price is between US$1,000-$1,500 and 2% if the price is over US$1,500.|
The Claims consist of two new concessions; the Real de Guadalupe which measures 453.5 hectares and La Ardilla which measures 53.5 hectares. The agreement to acquire the Real de Guadalupe concession provides that the Company pay a minimum advance royalty of US$8,000 per annum starting in year three and ending in year eight. The total royalty is based on a payment of US$4.00 per ounce of gold equivalent NI 43-101 compliant mineable reserves ("Reserves"). Any minimum royalty payments will be applied against any final royalty payments due. MDD has agreed to pay the optionors of the Claims an ongoing royalty of US$4.00 per ounce of any future increase in Reserves. The La Ardilla concession has no further commitment.
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 of 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.
Mr. Ramon Luna P.Geo is the qualified person as defined by National Instrument 43-101 and is responsible for the geological information contained in this release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of GoGold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from GoGold's expectations are exploration risks detailed herein and from time to time in the filings made by GoGold with securities regulators.
SOURCE: GOGOLD RESOURCES INC.For further information:
Terence F. Coughlan, President and CEO,
Sean Tufford, Vice President, Corporate Development
GoGold Resources Inc.,
T: 902 482-1998
F: 902 442-1898