HALIFAX, NS, June 9, 2021 /CNW/ - GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the Company") is pleased to release the results of 12 diamond drill holes from the El Orito area in its Los Ricos North project. Hole LRGO-21-041 intersected 4.2m of 1,007 g/t silver equivalent ("AgEq") contained within 58.0m of 168 g/t AgEq (See Table 1 for details including breakdown of zinc, silver and gold values).
Figure 4: Favor-Orito Long Section (CNW Group/GoGold Resources Inc.)
After seeing the amount and types of sulphide minerals present in the first drill holes through the El Orito deposit, the company initiated an Induced Polarization ("IP") survey to map out the sulphide rich zone along strike and down dip. The IP survey is mapping a strong chargeability anomaly over the mineralization, and it is thought to be related to the pyrite and chalcopyrite content in the zone. The survey is continuing eastwards into the El Favor deposit (see Figure 2).
"These new drilling results are continuing to expand the size of the El Orito deposit," said Brad Langille, President and CEO. "The mineralization at both the El Orito and El Favor deposits can be identified and followed with the IP survey and I believe will help to locate and define the next series of deposits on our Los Ricos North properties. We expect more results over the coming weeks to develop out of this additional tool we are using in our exploration efforts. We believe the Los Ricos district is becoming very significant in the silver space."
Table 1: Drill Hole Intersections
Hole ID
Area
From
To
Length1
Ag
Au
Cu
Pb
Zn
AgEq2
(m)
(m)
(m)
(g/t)
(g/t)
(%)
(%)
(%)
(g/t)
LRGO-21-028
El Orito
126.0
135.5
9.5
20.2
0.03
0.10
0.35
0.73
63.8
and
187.5
189.3
1.8
17.9
0.04
0.25
0.48
2.53
139.7
LRGO-21-029
El Orito
219.8
232.1
12.4
38.2
0.08
0.23
2.11
3.79
221.2
including
227.8
230.3
2.6
92.6
0.09
0.61
5.32
9.90
536.5
and
246.9
249.6
2.8
22.5
0.02
0.05
0.73
1.72
102.5
LRGO-21-030
El Orito
62.9
66.5
3.7
49.2
0.12
0.07
1.01
1.22
129.3
including
63.7
65.1
1.3
121.0
0.32
0.13
2.36
1.51
263.1
and
74.5
75.8
1.3
28.0
0.02
0.20
1.26
0.97
110.9
and
83.8
97.2
13.4
64.0
0.44
0.12
0.86
0.20
135.3
including
92.9
95.8
3.0
222.2
1.93
0.29
2.72
0.14
464.4
and
109.0
153.2
44.3
23.3
0.04
0.08
0.66
1.23
90.5
including
144.7
149.6
4.9
43.9
0.16
0.16
2.48
3.50
246.4
LRGO-21-031
El Orito
95.0
121.6
26.6
13.7
0.04
0.07
1.13
1.29
93.6
including
101.0
106.1
5.1
38.2
0.17
0.20
4.55
1.95
242.7
including
101.0
102.4
1.4
87.4
0.55
0.23
10.67
0.10
407.4
LRGO-21-032
El Orito
196.8
206.8
10.0
56.2
0.11
0.06
1.21
0.61
119.8
including
198.4
199.9
1.4
273.1
0.49
0.02
1.56
0.09
351.9
and
215.7
245.0
29.4
35.7
0.06
0.23
2.16
4.15
250.8
including
228.3
245.0
16.8
51.3
0.07
0.36
3.33
6.45
383.8
including
237.1
243.3
6.3
90.3
0.09
0.65
5.16
9.55
598.6
and
291.8
294.6
2.8
32.1
0.08
0.22
1.89
3.12
208.1
LRGO-21-033
El Orito
141.1
142.7
1.6
76.8
0.20
0.02
0.14
0.21
103.4
and
217.5
221.2
3.8
32.9
0.09
0.13
0.31
2.43
140.0
LRGO-21-034
El Orito
133.0
137.0
4.0
28.2
0.03
0.08
0.52
0.51
66.9
and
198.5
203.0
4.5
14.7
0.02
0.04
0.33
1.21
67.9
and
223.1
224.8
1.7
15.9
0.03
0.04
0.93
1.60
97.2
LRGO-21-035
El Orito
68.2
70.9
2.8
100.6
0.30
0.01
0.07
0.02
126.0
and
142.0
143.5
1.6
32.4
0.27
0.05
0.20
0.51
79.0
LRGO-21-036
El Orito
206.4
207.9
1.5
528.3
0.03
0.12
0.00
0.01
542.1
and
232.4
350.3
117.9
6.3
0.02
0.02
0.19
1.33
58.2
including
245.2
248.4
3.3
37.2
0.20
0.05
0.63
3.81
198.8
including
259.0
262.7
3.7
22.2
0.02
0.10
1.69
3.09
175.9
including
268.5
270.8
2.3
7.0
0.01
0.06
0.27
8.40
298.1
LRGO-21-037
El Orito
240.5
243.5
3.0
28.5
0.03
0.16
1.15
1.52
124.2
LRGO-21-040
El Orito
200.2
206.0
5.8
9.2
0.01
0.08
0.32
1.53
75.4
including
201.0
203.0
2.0
16.7
0.01
0.13
0.66
3.12
149.0
LRGO-21-041
El Orito
182.1
240.1
58.0
30.8
0.04
0.19
1.25
2.59
168.0
including
206.0
229.0
23.0
60.7
0.08
0.40
2.43
4.88
325.0
including
217.8
229.0
11.3
95.6
0.13
0.69
3.33
7.52
500.3
including
217.8
221.9
4.2
185.7
0.22
1.46
6.87
15.12
1,007.2
1.
Not true width.
2.
AqEq converted using a silver to gold ratio of 75:1. Copper, Lead and Zinc converted using $3.66/lb, $0.90/lb and $1.26/lb at 100% recoveries based on a silver price of $26.00/oz.
3.
Hole LRGO-21-039 did not intercept significant mineralization. Hole LRGO-21-038 assays are pending.
The holes that the Company has drilled to date at El Orito have shown mineralization averaging approximately 30m in width for more than 700m in strike length and up to approximately 300m in vertical depth from surface and is open in all directions. The El Orito deposit is located about 1,000 meters to the west along strike from the El Favor deposit. The Company's exploration team is mapping, sampling, and surveying with IP geophysics to potentially connect the two deposits. The El Orito deposit may be unique in the Los Ricos district as it is the deeper part of the system where silver and base metals are present, while the other targets in the system to date have shown primarily silver and gold mineralization.
The known strike length of the El Orito – El Favor structure is now approaching 2,500 meters and is still open in both directions. The surface topography at El Orito is 400 to 500m lower compared to El Favor and is allowing the exploration team to see this large, mineralized structure over a vertical height of 750 meters when measured from the surface outcrops at El Favor to the intersections in the El Orito drill holes.
Table 2: Drill Hole Locations
Hole ID
Easting
Northing
Elevation
Azimuth
Dip
Length
LRGO-21-028
583511
2336727
822
210
-55
284.0
LRGO-21-029
583578
2336995
851
210
-65
330.9
LRGO-21-030
583867
2336663
868
30
-45
221.0
LRGO-21-031
583522
2336720
824
210
-45
238.0
LRGO-21-032
583685
2336968
895
210
-50
322.0
LRGO-21-033
583867
2336663
868
30
-60
284.9
LRGO-21-034
583563
2336713
825
210
-50
401.0
LRGO-21-035
583601
2336933
891
210
-50
385.0
LRGO-21-036
583920
2336839
974
210
-70
419.4
LRGO-21-037
583602
2337020
843
210
-65
334.5
LRGO-21-038
583571
2336749
841
210
-55
309.0
LRGO-21-039
583960
2336886
999
210
-75
525.3
LRGO-21-040
583502
2336786
811
210
-55
275.0
LRGO-21-041
583607
2336982
865
210
-55
277.0
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The Company's two exploration projects at its Los Ricos property are in Jalisco state, Mexico. The Los Ricos South Project began in March 2019 and an initial resource was announced on July 29, 2020 which indicated a Measured & Indicated Mineral Resource of 63.7 million ounces AgEq grading 199 g/t AgEq contained in 10.0 million tonnes, and an Inferred Resource of 19.9 million ounces AgEq grading 190 g/t AgEq contained in 3.3 million tonnes. An initial PEA on the project was announced on January 20, 2021 indicating an NPV5% of US$295M.
The Los Ricos North Project was launched in March 2020 and includes drilling at the El Favor, La Trini, Casados and El Orito targets. During 2020, GoGold's exploration team identified over 100 targets on the Los Ricos North properties, demonstrating the significant exploration potential. The Company plans to drill 10 of these targets as part of its 2021 drilling program which is planned to exceed 100,000 metres of drilling and will be one of the largest in Mexico.
Procedure, Quality Assurance / Quality Control and Data Verification
The diamond drill core (HQ size) is geologically logged, photographed and marked for sampling. When the sample lengths are determined, the full core is sawn with a diamond blade core saw with one half of the core being bagged and tagged for assay. The remaining half portion is returned to the core trays for storage and/or for metallurgical test work.
The sealed and tagged sample bags are transported to the ActLabs facility in Zacatecas, Mexico. ActLabs crushes the samples and prepares 200-300 gram pulp samples with ninety percent passing Tyler 150 mesh (106μm). The pulps are assayed for gold using a 50-gram charge by fire assay (Code 1A2-50) and over limits greater than 10 grams per tonne are re-assayed using a gravimetric finish (Code 1A3-50). Silver and multi-element analysis is completed using total digestion (Code 1F2 Total Digestion ICP). Over limits greater than 100 grams per tonne silver are re-assayed using a gravimetric finish (Code 8-Ag FA-GRAV Ag).
Quality assurance and quality control ("QA/QC") procedures monitor the chain-of-custody of the samples and includes the systematic insertion and monitoring of appropriate reference materials (certified standards, blanks and duplicates) into the sample strings. The results of the assaying of the QA/QC material included in each batch are tracked to ensure the integrity of the assay data. All results stated in this announcement have passed GoGold's QA/QC protocols.
Mr. David Duncan, P. Geo. 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 operates the Parral Tailings mine in the state of Chihuahua and has the Los Ricos South and Los Ricos North exploration projects in the state of Jalisco. Headquartered in Halifax, NS, GoGold is building a portfolio of low cost, high margin projects. For more information visit gogoldresources.com.
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 Los Ricos South and North projects, and future plans and objectives of GoGold, including the intention to undertake further exploration at Los Ricos North, and the prospect of further discoveries there, 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 please contact: Steve Low, Corporate Development, GoGold Resources, T: 416 855 0435, E: [email protected]
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