Trading Symbol: TSX: GGD
Shares Issued: 147,814,830
HALIFAX, Sept. 09, 2014 /CNW/ - GoGold Resources Ltd. (TSX: GGD), (GoGold), is pleased to provide an update on the commissioning of its Parral Tailings Project in Mexico. Commissioning of the main plant began in June 2014 and production rates have been consistently increasing as ramping up continues. As of August 31st, 2014, approximately 180,000 tonnes have been agglomerated and stacked on the lined heap leach pad and a total of 61,000 ounces of silver and 105 ounces of gold have been produced as dore. In accordance with the mine plan, the first material being treated is from Zone 3 (known as the Red Hill). The performance to date has met or exceeded expectations based on the following performance indicators:
Capex: We have essentially completed construction with a capital expenditure cost of approximately $32.5 million versus our pre-feasibility study budgeted cost of $35 million.
Head Grade: The silver head grade as measured at the plant has shown an average increase of 20% over the original resource block model grade of the Red Hill material of 69 g/t Ag ("grams per tonne") as determined in the Pre-feasibility study. The average resource grade for the mined areas of the block model from the report is 65 g/t Ag. The plant head grade as determined by the plant is currently averaging 83 g/t Ag. This represents a significant increase in recoverable metal early in the project.
Agglomerate Quality: The feed of tailings are agglomerated with cement prior to stacking. The purpose of the agglomeration is to make the material permeable to the cyanide leaching solution which is a very critical first step for metal recovery. To date, the agglomerate quality has been good and percolation through the heap is occurring within expectations.
Metal Recovery: A key performance indicator for a new heap leach startup is the grade of the leach solutions flowing from the heap. The silver solution grades have been well within the design parameters which clearly indicate the expected cyanide leaching reaction is occurring. Actual recovery calculations will be done once sufficient amounts of material have been leached and residue samples collected and assayed. As of today, all material stacked (195,000 tonnes) is currently under leach. When the plant is in full production later this fall, it is expected that 300,000 tonnes will be under leach at any given time.
Reagent Consumptions: The main reagents consumed at Parral are cement, cyanide and zinc. All reagents to date are well within the forecast consumptions for the material being treated. In particular the cyanide which is the major consumable has been well below forecasted consumption which should represent significant savings going forward. The main by-product which is leached along with the silver is copper. The amounts of copper leached have been within the expected range and have not overly impacted cyanide consumption.
Dore Quality: The dore produced to date has averaged 85% silver with minor amounts of gold, copper and zinc. The quality falls within the assay range accepted by the refineries. Dore bars totaling 41,223.34 ounces of silver and 76.46 ounces of gold have already been shipped to the refinery for treatment.
Average Cost per Tonne of Ore: Mining and processing per tonne of ore to date has averaged $6.50 - $8.50 per tonne which represents a significant reduction from the pre-feasibility study predicted cost per tonne of $12.
The operation will continue to ramp up over the coming months as the company reaches commercial production.
Belt samples are taken hourly with composites combined three times per day (for each shift). The composite samples are sealed and tagged in bags and shipped to the ActLabs 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 tested for Au/Ag by fire assays with a gravimetric finish and multi-element ICP analysis for all the other elements. This process is expected to continue as additional tailings are processed.
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.
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 impact of the private placement and debt financing on GoGold and the Parral tailings project, 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.
SOURCE: GoGold Resources Inc.
For further information: 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 : firstname.lastname@example.org, Or visit : www.gogoldresources.com