Trading Symbol: TSX: GGD
Shares Outstanding: 171,376,481
HALIFAX, NS, June 20, 2019 /CNW/ - GoGold Resources Inc. (TSX: GGD) ("GoGold", "the Company") is pleased to announce that it is moving forward with the installation of a SART (Sulfidation, Acidification, Re-neuralization and thickening) plant at its Parral tailings re-processing facility. The construction is planned to be completed before the end of 2019 at a cost of approximately $2.6 million USD and commissioning will begin immediately following practical completion.
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 and the re-generation of cyanide, which is the largest single operating cost at Parral, and improve the leaching efficiency of the heap. In the first year of operation, the SART is expected to generate over $3.4 million in net cash flows from copper sales and cyanide cost savings.
The company has contracted the Canadian contractor BQE Water to design and construct the SART plant. BQE is a world-leader in SART technology and its application and has been at the Parral site on several occasions to evaluate the application of the technology. The company has previously installed and piloted a "lite" version of SART to help assess its effectiveness.
"While it is clear that this is a good deployment of our capital due to the quick payback period, implementing a full SART plant will also bring us the added benefit of providing a more efficient leaching solution. We completed the demonstration sized SART lite plant last year which proved the effectiveness of the process and have made the decision through consultation with BQE to proceed with the full size plant. Components of the demonstration plant will be re-used in the full sized SART plant," said Brad Langille, President and CEO.
Technical information contained in this news release with respect to GoGold has been reviewed and approved by Mr. Robert Harris, P.Eng., who is a qualified person for the purposes of NI 43-101.
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.
SOURCE GoGold Resources Inc.
For further information: Steve Low, Corporate Development, GoGold Resources Inc., T: 416 855 0435, Email : [email protected] Or visit : www.gogoldresources.com