Trading Symbol: TSX: GGD
Shares Outstanding: 171,376,481
HALIFAX, Oct. 12 2017 /CNW/ - GoGold Resources Inc. (TSX: GGD) ("GoGold", "the Company") announces production for the quarter ended September 30, 2017 of 353,370 silver equivalent ounces at the Parral project, a 125% increase over the same quarter the previous year and a 12% increase over the prior quarter. The quarter ended September 30th is traditionally the rainy season in Mexico which can negatively impact production. With the changes that have been made to the operating procedures the production was not negatively impacted and increased 125% over the previous year rainy season quarter. Production at Parral continues to improve with the quarter ended September 30, 2017 being the fourth consecutive quarter of production growth.
Over the past year the Company has focused on improving recovery times and has made several changes. These changes include:
- reducing the stacking height from a single 10 meter high lift to multiple 4-5 meter high lifts;
- increasing the amount of cement being added to the agglomerated material to strengthen it and improve stability and penetration of the cyanide enriched solution;
- increasing the cyanide strength for the first 60 days of irrigation;
- increasing the capacity of the Merrill Crowe; and
- increasing the curing period of agglomeration from a few days to two weeks prior to irrigation.
"The changes made at Parral in late 2016 and the first half of 2017 have now taken effect and we expect to see continued increases in production through fiscal 2018" said Brad Langille, CEO.
The above changes have made a significant improvement in the recovery times for the material stacked.
The heap leach pad is divided into 15 pads (or cells) which permit the measurement of recovered metal from each pad which allows us to track recovery rates for each specific area. The above graph shows the significant improvement in the recovery times for the more recent pads since the above referenced changes were made compared to an average of the older pads. The Company began stacking at 4-5 meter high lifts with pad 11 and continued with pads 12, 13, and 14. The final adjustment for pad 15 was allowing for a two-week cure time which had a positive impact on the recovery times. The older pads continue to recover metal daily and the Company has begun reworking material on pads 9 and 10 where the agglomeration did not meet our quality standards. The Company expects that the total recovery rates in the prefeasibility study are achievable as we did achieve full expected recovery on the oldest pad for both gold and silver.
Over the past 6 months there has been a focus on producing quality agglomerated material which resulted in an average of 3,150 tons per day stacked. Now that the recovery times have improved the Company is focusing on increasing the quality tons stacked and cost control to drive profitability and production growth going forward.
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's Parral Tailings project is one of the lowest cash cost silver producers in the world. Headquartered in Halifax, NS, GoGold is building a portfolio of low cost, high margin projects. For more information visit gogoldresources.com.
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 Santa Gertrudis 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 and Santa Gertrudis projects. 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, T: 416 855 0435, E: [email protected]