Trading Symbol: TSX: GGD
Shares Outstanding: 171,376,481
HALIFAX, Jan. 11, 2018 /CNW/ - GoGold Resources Inc. (TSX: GGD) ("GoGold", "the Company") announces production for the quarter ended December 31, 2017 of 261,693 ounces of silver and 1,708 ounces of gold for 392,406 silver equivalent ounces at the Parral project, an 11% increase from the prior quarter. This past quarter has been the fifth consecutive quarter of production growth as the initiatives put in place in previous quarters continue to gain traction.
Over the past eighteen months the Company has focused on improving recovery times by making several changes to the process at Parral. Some of these process improvements include:
- Reduced stacking height to 5 meter high lifts from the 10 meter high lifts in previous years. This will result in multiple lifts going forward;
- Improved permeability and stability in the material by adding more cement to the agglomerated material and increased curing time;
- Fine tuned the cyanide strength at various times during the leaching cycle; and
- Increased capacity of the Merrill Crowe.
In addition to the above noted items, during the most recent quarter construction was completed on the SART (sulfidization, acidification, recycling, and thickening) plant at Parrall which will reduce cyanide consumption and generate a saleable copper sulfide product. The plant is being commissioned now and is expected to contribute cost savings and copper production in the current quarter.
On Site Lab Improvements:
During the quarter, the Company has improved and expanded its on-site lab to better assay and report production numbers from the site and how they compare to the ultimate sold ounces. In the 2017 GoGold fiscal year, the site reported production number compared to the final ounces sold, was overstated by 3.7%, or 42,000 ounces. With the improvements to our lab processes at Parral made this quarter, the variance should be = +/-1%. The Company has budgeted $200,000 for further improvement and expansion of its on-site lab in the 2018 fiscal year. This expansion will allow the Company to conduct column leach testing and additional fire assay tests. This lab expansion better positions the company for project evaluation, including additional tailings deposits.
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]