GoGold Drills 21 Meters of 2.22 g/t Gold in Newly Discovered Zones at Santa Gertrudis

Trading Symbol: TSX: GGD
Shares Issued: 147,814,830  

HALIFAX, July 31, 2014 /CNW/ - GoGold Resources Inc. (TSX: GGD), is pleased to announce new drilling results from the Santa Gertrudis Gold Mine in Sonora, Mexico.  The new drilling is outside of the present resource that was announced on June 7th of this year and will be incorporated in the Preliminary Economic Assessment that is to be issued shortly on the project.

The drilling program was designed to follow-up previously untested structural breaks where they cross the favorable limestone beds that host many of the mined deposits on the property.  The company's geological team developed the targets after creating 3D models of the gold grade distribution of more than 100,000 blast holes from the 22 open pits on the property. Testing of the new targets began in late May with priority assigned to near surface, oxidized zones that can be easily added to the published mineral resource.

The first two areas tested added significant new gold drill intercepts in zones adjacent to some of the known deposits. Holes at the Rueben deposit hit new high grade mineralization of 21 meters of 2.22 grams per tonne ("g/t") gold and a second hole intersected 7.45 meters of 11.28 g/t gold. At the Escondida deposit, drillhole GGES-010 intercepted a new zone of 48.7 meters of 0.9 g/t gold and 45.2 g/t silver including 22.4 meters of 1.77 g/t gold and 84.5 g/t silver. Drillhole GGES-009 intercepted the same zone with 10.9 meters of 2.11 g/t gold and 41.1 g/t silver (See table 1 below for details).

Table 1: New Drill Results:

Name

Hole No.

From (m)

To (m)

Length (m)

Gold g/t

Silver g/t



Rueben

GGRU-001

90.15

93.00

2.85

1.37

1.0


Rueben

GGRU-002

79.10

100.10

21.00

2.22

1.5


Rueben

incl.

90.80

100.10

9.30

3.21

1.5


Rueben

GGRU-004

51.35

58.80

7.45

11.28

16.9










Escondida

GGES-002

56.85

65.30

8.45

1.32

7.8


Escondida

GGES-003

41.15

44.25

3.10

0.64

5.3


Escondida

and

53.00

56.90

3.90

0.47

15.3


Escondida

and

85.90

95.50

9.60

0.02

113.3


Escondida

GGES-004

90.45

95.30

4.85

1.72

6.8


Escondida

GGES-005

31.30

38.00

6.70

0.63

5.3


Escondida

GGES-006

40.00

52.20

12.20

0.31

2.5


Escondida

GGES-007

54.85

68.40

13.55

0.37

10.7


Escondida

and

75.80

79.60

3.80

1.73

10.6


Escondida

GGES-009

34.40

52.00

17.60

0.34

18.5


Escondida

and

67.50

78.40

10.90

2.11

41.4


Escondida

GGES-010

0.00

6.10

6.10

5.59

12.3


Escondida

and

22.75

34.95

12.20

0.86

14.1


Escondida

and

65.00

113.70

48.70

0.90

45.2


Escondida

incl

88.70

111.10

22.40

1.77

84.5


Escondida

GGES-012

46.45

69.57

23.12

0.93

11.6


Escondida

GGES-013

60.80

65.00

4.20

0.63

8.0










Trinidad

GGTR-002

51.60

58.60

7.00

0.78

1.3


True Widths are not yet determined. Metallurgical recoveries and net smelter returns are assumed to be 100%.  GGRU-003, GGES-001, GGES-002, GGES-008, GGES-011, and GGTR-001 intercepts were low grade.

Santa Gertrudis Past-Producing Mine

Santa Gertrudis is a past-producing gold mine that was acquired in April 2014 as part of GoGold's purchase of Animas Resources.  The original mine operated from 1991 to 2000, producing 564,000 ounces of gold at an average grade of 2.13 g/t, but ceased activities due to low gold prices. Previous operations had produced a substantial database of 2422 drill holes (250,539 metres of core and RC drilling) and more than 100,000 metres of blast holes. An historic resource estimate based on only a portion of that data suggested that a NI 43-101 compliant resource of 557,000 inferred ounces of gold remained in and around the Santa Gertrudis open pit with resources from surface to 100m depth.

In June 2014, GoGold updated the resource estimate to 609,600 ounces of gold indicated (16.4 Mt @ 1.16 g/t) and 141,400 ounces inferred (4.5 Mt @ 0.97 g/t).

Table 2. Updated Santa Gertrudis Property Mineral Resource Estimate 1,2,3,4,5



Indicated

Inferred

Type

Cutoff
(Au g/t)

kTonnes

Grade
(Au g/t)

Au
(kOz)

kTonnes

Grade
(Au g/t)

Au
(kOz)

Ox

0.23

14,576.70

1.06

496

3,790.50

0.86

104.7

Carb Ox

0.34

891

2.16

61.9

230.8

1.83

13.6

Mixed

0.34

478.7

1.7

26.1

321.5

1.49

15.4

Sulphide

0.7

216.9

2.32

16.2

Nil

nil

nil

Pads

0.3

244.3

1.2

9.4

192.5

1.24

7.7

Total


16,407.60

1.16

609.6

4,535.30

0.97

141.4

1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

2. The quantity and grade of reported Inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource, and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.

3. The mineral resources in this estimate were calculated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines as prepared by the CIM Standing Committee on Reserve Definitions, as well as the requirements of National Instrument 43-101.

4. All resources are reported within an optimized pit shell developed using the following economic parameters: Gold Price $1,300 per ounce. G&A cost $1.50 per tonne. Mining cost $2.00 per tonne. Processing cost $5.60 per tonne for oxides, carbonaceous oxides and mixed oxide/sulphide deposits, and $25.00 per tonne for sulphides. Process recoveries used are 75% for oxides and leach pad material, and 50% for carbonaceous oxides and mixed oxide/sulphide deposits, and 90% for sulphides. Optimized pit slopes are 50 degrees.

5. The mineral resource table incorporates 35 deposits and associated optimized pit shells as well as one leach pad.

Details regarding the updated resource can be found in the June 17, 2014 press release. GoGold is continuing exploration and expects the resource to grow and for additional potential high-grade targets to be identified. Our team believes they can achieve a production decision by Q3 2014 with the goal of quickly reinstating mining. As a past producer, the Santa Gertrudis property has infrastructure in place with numerous pits already stripped with haul roads and ready to start mining.

Table 3: Coordinates of the new Santa Gertrudis drill holes

Hole No.

Easting

Northing

Elev

Azimuth

Dip

Length

GGTR-001

544032

3392245

1390

20

-55

90.8

GGTR-002

544068

3392206

1390

20

-55

93.4

GGES-001

545557

3390439

1501

55

-45

78.4

GGES-002

545557

3390439

1501

55

-85

88.4

GGES-003

545581

3390341

1518

55

-75

101.6

GGES-004

545597

3390296

1534

55

-72

116.0

GGES-005

545962

3390382

1553

0

-60

130.7

GGES-006

545487

3390540

1502

55

-45

98.8

GGES-007

545476

3390473

1512

55

-60

120.3

GGES-008

545372

3390445

1480

187

-45

70.2

GGES-009

544956

3390540

1440

187

-50

140.5

GGES-010

545077

3390501

1444

187

-54

120.8

GGES-011

546090

3390346

1541

7

-45

113.6

GGES-012

546214

3390326

1540

7

-45

95.1

GGES-013

545300

3390471

1482

187

-50

78.0

GGRU-001

543958

3389063

1462

137

-50

105.2

GGRU-002

543958

3389063

1463

137

-74

124.2

GGRU-003

543921

3389038

1463

137

-55

123.5

GGRU-004

543949

3389036

1460

137

-50

112.3






Total

2001.4

Core Samples

The core was either HQ or NQ in size in the surface holes. Holes were started at the larger HQ size and reduced to NQ if necessary. The drilling crew boxes the core and GoGold employees transport it to the core shack. In the core shack the core is geologically logged with sample lengths indicated. When the sample lengths are determined the core is sawn in half with a diamond blade core saw with one half of the core being bagged and tagged for assay. The other half is returned to the core trays for storage.

Lab Preparation

The sealed and tagged sample bags are turned over to ActLabs personnel at the site who transport them to the ActLabs sample preparation facility in Zacatecas, Mexico. ActLabs crushes the samples and prepares 200-300 gram pulp samples. Ninety percent of the pulp will pass Tyler 150 mesh (106μm). The pulps are sent to ActLabs in Canada for analysis for Au/Ag fire assays with a gravimetric finish and ICP-41 for all the other elements. This process is expected to continue as additional drill core continues to arrive.

Mr. David R. Duncan, P.Geo is the qualified person as defined by National Instrument 43-101 and is responsible for the geological information of this release.

CAUTIONARY STATEMENT:
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 debt financing on GoGold and the Parral tailings project, the use of the net proceeds of the advance, 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 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 and GoGold does not undertake to update publicly or revise the forward-looking information contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. No regulatory authority has approved or disapproved the adequacy or accuracy of this news release.

 

SOURCE GoGold Resources Inc.

For further information: please contact: Terence F. Coughlan, President and CEO, or, Sean Tufford, Vice President, Corporate Development, GoGold Resources Inc., T: 902 482-1998, F: 902 442-1898; Email : sean@gogoldresources.com; Or visit : www.gogoldresources.com