HALIFAX, NS, July 28, 2021 /PRNewswire/ - GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the Company") is pleased to release the results of 5 new drill holes from the El Favor deposit in the Los Ricos North project. Drill hole LRGF-21-052 intersected 51.3m of 136 g/t silver equivalent ("AgEq"), including 0.9m of 1,576 g/t AgEq in the newly discovered El Favor East zone. See Table 1 for breakdown of silver and gold values, and Figure 2 for El Favor East map.
Figure 2: El Favor East (CNW Group/GoGold Resources Inc.)
Figure 3: Favor-Orito Long Section (CNW Group/GoGold Resources Inc.)
Figure 4: Plan View – La Trini to El Favor Area of Los Ricos North (CNW Group/GoGold Resources Inc.)
The exploration team has been moving east with drilling in 25m stepouts in the eastern end of El Favor, beginning with discovery hole 48, and continuing to intersect wide strong mineralization. This area is known as the El Favor East zone and in addition to these drill holes, additional drill holes further to the east are pending assays. The mapping program at El Favor East has extended the presence of mineralization 900m to the east of hole 48 (El Favor East zone discovery hole).
"We're pleased to see strong results such as hole LRGF-21-052 in our new El Favor East zone discovery and are excited to see the results of more holes farther east which are pending assays and look very promising," said Brad Langille, President and CEO. "We believe extending the strike length at the eastern end of El Favor at these grades will contribute greatly to the upcoming resource."
Table 1: Drill Hole Intersections
Hold ID
Area/Vein
From
To
Length1
Au
Ag
AuEq2
AgEq2
(m)
(m)
(g/t)
(g/t)
(g/t)
(g/t)
(g/t)
LRGF-21-052
El Favor East
21.9
73.2
51.3
0.31
112.8
1.82
136.3
including
26.4
37.8
11.4
0.96
235.2
4.10
307.3
including
26.4
27.3
0.9
2.78
1,367.2
21.01
1,576.0
including
34.8
37.8
3.0
2.65
335.6
7.13
534.7
including
34.8
35.5
0.7
9.63
654.6
18.35
1,376.5
and
235.7
237.2
1.5
0.18
169.3
2.44
182.7
LRGF-21-053
El Favor
66.5
78.5
12.0
0.36
124.0
2.02
151.1
including
71.6
76.3
4.7
0.89
270.4
4.50
337.2
LRGF-21-054
El Favor East
41.9
105.5
63.6
0.20
77.4
1.24
92.7
including
41.9
47.5
5.6
1.10
401.4
6.46
484.3
including
42.7
46.7
4.0
1.52
539.5
8.71
653.3
including
42.7
43.7
1.0
1.96
783.9
12.41
930.7
LRGF-21-056
El Favor East
35.0
87.4
52.4
0.23
80.3
1.30
97.7
including
71.7
87.4
15.7
0.44
137.0
2.27
170.2
including
71.7
76.2
4.5
0.61
252.7
3.98
298.3
and
126.5
131.2
4.7
0.35
101.6
1.70
127.8
1.
Not true width
2.
AqEq converted using a silver to gold ratio of 75:1 at recoveries of 100%
3.
Hole LRGF-21-055 did not intercept significant mineralization
Figure 1: El Favor Drill Hole Locations
Figure 2: El Favor East
The Eastern end of the El Orito deposit (as presently defined) is located about 800 metres along strike to the west of the Hundido Pit (see Figure 3). Wide zones of precious and base metal mineralization were cut by drill holes at El Orito at elevations between 600 to 800m. Geological mapping, sampling and Induced Polarization ("IP") surveying programs in the area between El Orito and El Favor are underway.
Three of the four major veins (Salomon, Guitarrillas and Los Chivos) appear to converge into a 100m wide zone at the western end of the El Favor deposit in the vicinity of the Hundido Pit at an elevation of 1300m. The wallrock in between the veins is strongly silicified, altered and mineralized. The merging of these veins continue to provide significant widths of good grade which could be potentially amenable to bulk mining.
Figure 3: Favor-Orito Long Section
Table 2: Drill Hole Locations
Hole ID
Easting
Northing
Elevation
Azimuth
Dip
Length
LRGF-21-052
585895
2336754
1211
180
-45
262.3
LRGF-21-053
585076
2336491
1264
180
-45
204.4
LRGF-21-054
585903
2336789
1203
180
-45
298.9
LRGF-21-055
585035
2336497
1245
180
-45
393.0
LRGF-21-056
585925
2336760
1220
180
-45
200.1
Figure 4: Plan View – La Trini to El Favor Area of Los Ricos North
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Los Ricos District Exploration Projects 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.
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