Trading Symbol:TSX: GGD
Shares Issued: 139,918,074
HALIFAX, May 07, 2014 /CNW/ - GoGold Resources Ltd. (TSX: GGD), (GoGold), is pleased to announce that the Parral heap leach project in Chihuahua, Mexico has reached a major milestone with the start of commissioning of agglomeration and ore stacking on the heap leach pad. It is anticipated that the first silver/gold Dore pour will occur near the end of this month. The company has been delivering ore to the heap leach facility since late April. The phase one leach pad is nearing completion and will accommodate the first two years of commercial production. Construction of the front end agglomeration circuit is complete and commissioning has begun. The processing is expected to gradually increase to 5,000 tpd over the next three months. The entire processing facility is approximately 90% complete with the remainder to be finished within the month and the project is on budget.
Visit our web site to view up to date photos of the plant and heap facility at www.gogoldresources.com.
Santa Gertrudis Gold Mine Update
GoGold contracted P&E Mining Consultants Inc. ("P&E") to complete a new 43-101 resource study and a Preliminary Economic Assessment (PEA) on its Santa Gertrudis gold mine located 180km north of Hermosillo, Sonora, Mexico. P&E has been working on the studies for a number of months with the NI 43-101 resource expected to be announced in late May 2014, followed by a PEA announcement in early July.
Currently, the project has a NI 43-101 Inferred resource of 557,000 ounces of gold in 13.5 M tonnes with an overall grade of 1.28 g/t. (Source: Ore Resources Engineering 2010) The current resource incorporated only 654 of the 2422 drill holes on the property. Over the last several months, GoGold and P&E have completed an extensive review of the remaining drill hole data, 200,000 assayed blast holes (digitized for modeling by GoGold), as well as a large database of metallurgical, geological, geotechnical, and geochemical data. This extensive review of the 20 years of exploration and production data is expected to increase and reclassify the resource. The company is advancing the project with additional confirmation drilling and environmental studies, targeting a restart of gold production during 2015.
About the Santa Gertrudis Mine
The Santa Gertrudis mine was discovered by Phelps Dodge in 1986 and advanced to open pit heap leach production in 1991. From May 1991 to October 2000, the Santa Gertrudis Gold Mine produced 564,000 ounces of gold with 75% recovery, required minimal crushing and had an average grade of 2.13 grams per tonne which is a high grade for an open pit heap leach mine in Mexico. Phelps Dodge sold part of the Santa Gertrudis Gold Mine to Campbell Resources in 1994. Campbell Resources later ceased operations mid mine life due to low gold prices during the late 1990's.
About P&E Mining Consultants Inc.:
P&E Mining Consultants Inc. is an established geological and mine engineering consulting firm specializing in the area NI 43-101 geological reports and have undertaken over 200 mineral industry projects worldwide including resource estimates, scoping studies, prefeasibility studies and has jointly collaborated with major consulting firms on feasibility studies.
Qualified Persons
Mr. Robert Harris P.Eng is the qualified person as defined by National Instrument 43-101 and is responsible for the information regarding the Parral project.
Mr. Ramon Luna P.Geo is the qualified person as defined by National Instrument 43-101 and is responsible for the geological information pertaining to the Santa Gertrudis portion of this release.
Technical Report and Resource Estimate on the Santa Gertrudis Gold Project, Sonora, Mexico, prepared for Animas Resources Ltd. dated December 31, 2010 by Alan Noble, Ore Reserves Engineer and Professional Engineer.
CAUTIONARY STATEMENT:
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 : [email protected], Or visit : www.gogoldresources.com
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