GoGold Announces New Plans for 2021By Paloma Duran | Wed, 12/30/2020 - 14:12
GoGold Resources provided an outlook of its two projects in Jalisco for 2021. For the Los Ricos South project, the company will carry out a Preliminary Economic Assessment (PEA) in January. Meanwhile, for the Los Ricos North project, it will execute an aggressive drill program and an initial mineral resource in the summer, said the company in a statement.
The Los Ricos property is located in Jalisco and includes the Los Ricos South and the Los Ricos North project, which are 25km apart. Since the acquisition of the Los Ricos properties in 2019, GoGold has acquired two new concessions in the South and 11 in the North. Currently, there are 13 concessions at Los Ricos South and 29 at Los Ricos North, for a total of 42 concessions.
The Los Ricos South project was launched in March 2019. It has the ‘Main’ area that is focused on drilling operations and includes the Cerro Colorado, Las Lamas and East Vein targets. Meanwhile, the Los Ricos North project was launched in March 2020 and includes the Salomon-Favor, La Trini and Mololoa targets. In a press release, Brad Langille, President and CEO of GoGold, said the company seeks to unlock the potential of the Los Ricos property to create value for the shareholders. Moreover, these plans are key for the company’s performance in 2021.
Langille explained that GoGold’s Parral project generates strong cash flow, which is sufficient to fund its operations and allows the company to be a self-funding junior in one of the largest exploration drill programs in Mexico. Languille added that the company’s balance sheet exceeds US$55 million in cash, which allows to unlock the true value of the Los Ricos.
According to the press release, a PEA of the South project is in its final stages and is expected to be released in January 2021. In July 2020, GoGold released an initial Mineral Resource Estimate, which showed an M&I mineral resource of 63.7Moz silver and an Inferred resource of 19.9Moz.
Meanwhile, in 2020, at the Los Ricos North project, GoGold identified more than 100 targets, demonstrating its potential. For 2021, the company plans to drill 10 of these targets as part of its drilling program, which is planned to exceed 100,000m of drilling and will be one of the largest in Mexico. Additionally, GoGold is completing an Initial Mineral Resource Estimate at Los Ricos North, which will be released in 2021.
GoGold announced that the company received a Socially Responsible Company (ESR) designation for its Environmental, Social and Governance (ESG) processes and procedures at the Parral property. The company also seeks to comply with these objectives at its Los Ricos property and it is working with key shareholders and multiple ejidos with the necessary rights of way.
In 2020, GoGold signed agreements with two ejidos, which ensure that the economic benefits of the projects will be shared with these communities. The company is currently completing an ESG report, which will be available in 2021.