GoGold Advances Los Ricos South Project With Feasibility Study

GoGold Resources has released a feasibility study for its Los Ricos South (LRS) project in Jalisco, Mexico, detailing plans to commence construction upon the anticipated approval of permits. “This feasibility study has a very high level of detail, exceeding the normal feasibility study level of detail in the process plant design. Our expectation is that we will receive a positive outcome on our permit application for our underground mine by the end of March 2025,” said Brad Langille, President and CEO, GoGold Resources.

Langille adds that the company is in advanced discussions regarding the financing required for construction. With the study and permit ready, GoGold expects to make a construction decision and begin building the mine.

The LRS project is designed for a 15-year mine life, beginning with 12 years of underground operations before transitioning to open-pit mining in year 10. The project has a construction budget of US$227 million and its total production is estimated at 80Moz of AgEq, including 41Moz of silver, 424,000oz of gold, and 11Mlb of copper. During the first five years, average annual output is projected to reach 7.3Moz of AgEq.

The company highlighted that Ausenco’s process plant design features advanced front-end engineering to ensure a smooth transition to detailed engineering and construction. The facility, re-engineered from the 2023 preliminary economic assessment, is based on a processing capacity of 2,000t/d. The capital budget includes a US$21 million contingency, while sustaining capital is projected at US$100 million over the mine’s lifespan.

GoGold also announced plans to pursue near-mine exploration to expand high-grade underground resources at LRS and advance the Los Ricos North (LRN) project, located 25km away. A preliminary economic assessment for LRN, completed in May 2023, estimates a net present value of US$413 million.

The updated LRS mineral resource estimate comprises 11Mt of measured and indicated resources, with grades of 162g/t silver, 1.56g/t gold, and 0.12% copper. Inferred resources total 2.2Mt, grading 106g/t silver, 1.11g/t gold, and 0.27% copper. Proven and probable reserves stand at 10.2Mt, grading 145.4g/t silver, 1.39g/t gold, and 0.1% copper.