GoGold Resources Inc. (TSX: GGD) (“GoGold”) is pleased to announce that it has drilled numerous high grade gold drill holes in the proposed open pit zones at its Santa Gertrudis Gold Mine located in Sonora state Mexico. The company is continuing to advance Santa Gertrudis to reestablish production. The drilling was designed to confirm historic mineralization and to test targets in the immediate vicinity of the open pit resource in the Pre-Economic Assessment (“PEA”) (See Press Release dated September 10, 2014). Hole GGDOR-010 (8.80 g/t gold over 37.6 metres) along with hole GGDOR-001 (6.79 g/t gold over 38.4 metres) confirm the down dip high grade extension at the Dora Pit structure and also confirms that the Oxide zone continues below the previously thought depth of the Oxide mineralization. These holes confirmed the higher grades at the Dora structure and identified the material as mostly Oxide. The past mining of the oxide material located immediately above this intercept had reported 75% recoveries on a conventional heap leach with a crush size of four inches.
Additionally, other significant holes have been drilled at the Corral zone and Cristina zone with highlights that include 17 metres of 3.58 g/t gold at Corral and 31.4 metres of 1.18 g/t gold at Cristina. These three targets have been identified as the initial pits the company could restart mining and should represent the first four years of feed. Construction is expected to commence immediately following the completion of final engineering of the heap leach pad and the processing plant design. See chart below for the full results from the new drilling at Santa Gertrudis:
Highlights from Three In Pit Deposits in the PEA:
(See Table 1. Below for Details)
Dora Deposit
Hole GGDOR-001 intercepted 6.79 g/t gold over 38.4 metres
Hole GGDOR-008 intercepted 8.21 g/t gold over 6.7 metres
Hole GGDOR-010 intercepted 8.80 g/t gold over 37.6 metres
Hole GGDOR-011 intercepted 4.60 g/t gold over 21.8 metres
Corral Deposit
Hole GGC0R-009 intercepted 5.58 g/t gold over 6.5 metres
Hole GGC0R-011 intercepted 3.58 g/t gold over 17.2 metres
Cristina Deposit
Hole GGCR-001 intercepted 1.17 g/t gold over 37.7 metres
Hole GGCR-002 intercepted 1.04 g/t gold over 44.9 metres
Hole GGCR-004 intercepted 1.18 g/t gold over 31.4 metres
Table 1. Summary of Recent Santa Gertrudis Drilling Results:
| Dora Deposit | |||||
| Hole ID | Comment | From (m) | To (m) | Length (m) | Au g/t |
| GGDOR-001 | 124 | 162.4 | 38.4 | 6.79 | |
| including | 124 | 149.2 | 25.3 | 8.07 | |
| including | 136.7 | 145.5 | 8.9 | 14.57 | |
| and | 151.4 | 165.4 | 14 | 4.09 | |
| GGDOR-004 | 110.8 | 114.8 | 4 | 3.67 | |
| and | 124.8 | 138 | 13.2 | 1.99 | |
| including | 124.8 | 127.8 | 3 | 4.27 | |
| and | 155.5 | 159.5 | 4 | 1.47 | |
| GGDOR-008 | 85.4 | 92.1 | 6.7 | 8.21 | |
| including | 85.4 | 90.1 | 4.7 | 11.5 | |
| GGDOR-009 | 119 | 135.8 | 16.8 | 1.35 | |
| GGDOR-010 | 118.7 | 156.3 | 37.6 | 8.8 | |
| including | 120.5 | 134.7 | 14.3 | 14.73 | |
| including | 145.5 | 153.5 | 8 | 9.3 | |
| GGDOR-011 | 117 | 138.8 | 21.8 | 4.6 | |
| including | 119.3 | 125.1 | 5.8 | 8.34 | |
| including | 133.1 | 138.8 | 5.8 | 6.42 | |
| and | 144.9 | 148 | 3.1 | 4.06 | |
| Corral Deposit | |||||
| Hole ID | Comment | From (m) | To (m) | Length (m) | Au g/t |
| GGCOR-003 | 146 | 158.1 | 12.1 | 1.32 | |
| including | 146 | 148 | 2 | 2.97 | |
| GGCOR-005 | 75.3 | 85.7 | 10.4 | 1.63 | |
| including | 77.1 | 79.7 | 2.6 | 5.08 | |
| GGCOR-008 | 177.6 | 183.4 | 5.8 | 3.35 | |
| GGCOR-009 | 80.5 | 89.5 | 9 | 1.26 | |
| and | 137.4 | 143.9 | 6.5 | 5.58 | |
| GGCOR-010 | 24.4 | 28.9 | 4.5 | 1.74 | |
| and | 49.4 | 53.4 | 4 | 0.98 | |
| and | 71.5 | 78.5 | 7 | 2.9 | |
| including | 71.5 | 74.5 | 3 | 5.96 | |
| GGCOR-011 | 41.8 | 43.6 | 1.8 | 2.08 | |
| and | 48.7 | 65.9 | 17.2 | 3.58 | |
| including | 56.8 | 61 | 4.3 | 10.1 | |
| GGCOR-012 | 64.7 | 66.7 | 2 | 3.21 | |
| and | 75.2 | 81.9 | 6.7 | 2.99 | |
| GGCOR-013 | 0 | 3 | 3 | 5.48 | |
| 108.4 | 112 | 3.6 | 1.19 | ||
| Cristina Deposit | |||||
| Hole ID | Comment | From (m) | To (m) | Length (m) | Au g/t |
| GGCR-001 | 0 | 91.1 | 91.1 | 0.67 | |
| including | 52.9 | 90.6 | 37.7 | 1.17 | |
| GGCR-002 | 18.9 | 101.1 | 82.3 | 0.85 | |
| including | 53.1 | 98 | 44.9 | 1.04 | |
| GGCR-003 | 7.2 | 61.2 | 53 | 0.23 | |
| GGCR-004 | 0 | 94.7 | 94.7 | 0.88 | |
| including | 62.2 | 93.5 | 31.4 | 1.18 | |
| GGCR-005 | 0 | 77.6 | 77.6 | 0.59 | |
| including | 40.6 | 77.6 | 37 | 0.9 | |
| GGCR-006 | 0 | 51.3 | 51.3 | 0.58 | |
| including | 15.9 | 42.6 | 26.7 | 0.89 | |
| GGCR-007 | 2 | 29.7 | 27.7 | 0.54 | |
| including | 14.4 | 29.2 | 14.8 | 0.86 | |
| GGCR-008 | 0 | 20.5 | 20.5 | 0.45 | |
| GGCR-009 | 20.5 | 24.1 | 3.6 | 0.3 | |
| GGCR-010 | 22.3 | 35.7 | 13.4 | 0.42 | |
| GGCR-011 | 0 | 6.5 | 6.5 | 1.13 | |
| and | 19.3 | 30.3 | 11 | 0.4 | |
| GGCR-012 | 0 | 15.1 | 15.1 | 0.4 | |
| and | 19.6 | 31.5 | 11.9 | 0.29 | |
| GGCR-013 | 2.5 | 22.5 | 20 | 0.29 | |
| GGCR-014 | 2.5 | 39.5 | 37 | 0.49 | |
| including | 19.4 | 38.5 | 19.1 | 0.75 | |
| GGCR-015 | 2.3 | 10.9 | 8.6 | 0.34 | |
| GGCR-016 | 1 | 9 | 8 | 0.22 | |
| GGCR-017 | 12 | 29.2 | 17.2 | 0.38 | |
| including | 19.4 | 24.4 | 5 | 0.75 | |
| GGCR-019 | 4.6 | 23.6 | 19 | 0.27 | |
| including | 19.6 | 23.6 | 4 | 0.71 | |
| GGCR-021 | 54.5 | 57.5 | 3 | 3.1 | |
| GGCR-022 | 3 | 29 | 26 | 0.25 | |
| and | 33 | 111.9 | 78.9 | 0.34 | |
| including | 59 | 68 | 9 | 0.81 | |
| GGCR-023 | 61 | 124.5 | 63.5 | 0.5 | |
| including | 91.7 | 111 | 19.3 | 0.8 | |
| GGCR-024 | 41 | 84.6 | 43.6 | 0.35 | |
| including | 61.7 | 74.8 | 13.1 | 0.55 | |
| GGCR-025 | 20.6 | 28.9 | 38.4 | 0.52 | |
| Hole ID | Comment | From (m) | To (m) | Length (m) | Au g/t |
| GGCR-026 | 6 | 43 | 37 | 0.54 | |
| including | 13.9 | 35.7 | 21.8 | 0.72 | |
| GGCR-027 | 29.6 | 77.4 | 47.8 | 0.24 | |
| GGCR-028 | 20 | 57.8 | 37.8 | 0.64 | |
| including | 28.2 | 51.8 | 23.7 | 0.74 | |
| GGCR-030 | 4 | 10.1 | 6.1 | 0.91 | |
| and | 27.9 | 91.8 | 63.9 | 0.67 | |
| including | 58.7 | 91 | 32.4 | 0.99 | |
| GGCR-031 | 3 | 9 | 6 | 0.94 | |
| and | 27 | 36 | 9 | 0.67 | |
| and | 53 | 119.6 | 66.6 | 0.44 | |
| including | 58.8 | 68.7 | 9.9 | 0.78 | |
| GGCR-032 | 22.2 | 49.1 | 27 | 0.57 |
True width has not been calculated for each individual intercept, but true width is generally estimated at 85%-95% of drilled width. Metallurgical recoveries and net smelter returns are assumed to be 100%. GGDOR 003, 005, 006, 007, GGCOR 001, 004 & GGCR 018, 020, 021, 029 did not contain significant assays.
The diamond drilling programs at Dora, Corral and Cristina deposits were designed to confirm the resource and reserve models, obtain fresh material for metallurgical testwork, and obtain geotechnical information for pit slope design and crushing index testwork. Sixty six (66) diamond drill holes totaling 6,748.3 metres of HQ size core were completed in the Phase 1 program. Four (4) geotechnical diamond drill holes totaling 505 metres of HQ3 triple tube core with a core-orienting system to collect structural data have also been completed to date under the supervision of Golder Associates. Eight (8) additional geotechnical holes and seven (7) PQ-size diamond drill holes for crushing index testwork remain to be drilled.
On March 2nd 2015 the company announced that it had received the environmental permit allowing development of the past producing Santa Gertrudis gold mine from the Mexican Department of Environment (Semarnat). The permit included acceptance of the environmental impact assessment for its Santa Gertrudis gold mine.
Santa Gertrudis has a resource of 810,000 oz Indicated (23.3 Mt @ 1.08 g/t Au) & 255,000 oz Inferred (7.7 Mt @ 1.02 g/t Au) A Pre-Economic Assessment (“PEA”) (See Press Release dated September 10, 2014) was completed with a pre-tax internal rate of return (“IRR”) of 54%. All in Sustaining Cash Cost per ounce of gold was calculated to be $699 for life of mine (“LOM”). The study projects an initial capital cost of only $32million USD and a LOM of 12 years with an average annual production of 57,000 ounces of gold. The mine production is planned at 7,500 tonnes per day (“tpd”) on a conventional heap leach with a sustaining capital of only $18 million over LOM. The Preliminary Economic Assessment Study was prepared by P&E Group of Canada, in accordance with the requirements of Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects”. (“NI 43-101”)
Table 2. Coordinates of Santa Gertrudis Drill Holes
| Hole Number | Easting | Northing | Elevation | Azimuth | Dip | Length |
| GGDOR-001 | 543109 | 3387166 | 1378 | 60 | -45 | 180 |
| GGDOR-002 | 543109 | 3387166 | 1378 | 60 | -70 | 184.4 |
| GGDOR-003 | 543109 | 3387166 | 1378 | 60 | -80 | 195 |
| GGDOR-5A | 543100 | 3387190 | 1380 | 60 | -70 | 37 |
| GGDOR-004 | 543100 | 3387190 | 1380 | 60 | -50 | 191.7 |
| GGDOR-005 | 543100 | 3387190 | 1380 | 60 | -80 | 186 |
| GGDOR-006 | 543076 | 3387262 | 1381 | 60 | -75 | 180 |
| GGDOR-007 | 543283 | 3387391 | 1379 | 179 | -50 | 130.7 |
| GGDOR-008 | 543283 | 3387391 | 1379 | 179 | -65 | 150.3 |
| GGDOR-009 | 543109 | 3387166 | 1378 | 60 | -53 | 180.1 |
| GGDOR-010 | 543115 | 3387158 | 1377 | 60 | -40 | 160 |
| GGDOR-011 | 543115 | 3387158 | 1377 | 60 | -53 | 160.5 |
| GGDOR-012 | 543098 | 3387194 | 1379 | 60 | -45 | 160.5 |
| GGDOR-013 | 543249 | 3387400 | 1390 | 151 | -45 | 150.1 |
| GGDOR-014 | 543249 | 3387400 | 1390 | 151 | -45 | 143.45 |
| GGDOR-015 | 543249 | 3387400 | 1390 | 151 | -70 | 150.1 |
| Total Meters | 2246.3 | |||||
| GGSM-001 | 543965 | 3385226 | 1314 | 90 | -45 | 100.6 |
| GGSM-002 | 543960 | 3385178 | 1326 | 90 | -45 | 67.1 |
| GGSM-003 | 543825 | 3385056 | 1304 | 90 | -45 | 193.95 |
| GGSM-004 | 543926 | 3385053 | 1327 | 90 | -45 | 100.25 |
| GGSM-005 | 543971 | 3384950 | 1314 | 90 | -45 | 100.35 |
| Total Meters | 562.25 | |||||
| GGCR-001 | 544206 | 3384308 | 1382 | 60 | -80 | 136 |
| GGCR-002 | 544159 | 3384327 | 1367 | 60 | -75 | 130.5 |
| GGCR-003 | 544115 | 3384302 | 1347 | 360 | -90 | 187.4 |
| GGCR-004 | 544118 | 3384352 | 1348 | 60 | -60 | 157.4 |
| GGCR-005 | 544173 | 3384376 | 1366 | 60 | -60 | 105.6 |
| GGCR-006 | 544212 | 3384399 | 1367 | 60 | -60 | 84.1 |
| GGCR-007 | 544282 | 3384194 | 1352 | 60 | -62 | 71.75 |
| GGCR-008 | 544312 | 3384207 | 1354 | 60 | -60 | 45 |
| GGCR-009-A | 544231 | 3384207 | 1350 | 60 | -60 | 44.6 |
| GGCR-009 | 544231 | 3384207 | 1350 | 60 | -60 | 73.45 |
| GGCR-010 | 544257 | 3384222 | 1354 | 60 | -45 | 69.4 |
| GGCR-011 | 544243 | 3384416 | 1370 | 60 | -60 | 44.15 |
| GGCR-012 | 544238 | 3384465 | 1372 | 60 | -60 | 60.7 |
| GGCR-013 | 544264 | 3384480 | 1382 | 60 | -60 | 55.05 |
| GGCR-014 | 544201 | 3384489 | 1359 | 60 | -60 | 52 |
| GGCR-015 | 544228 | 3384505 | 1370 | 60 | -56 | 45.65 |
| GGCR-016 | 544150 | 3384507 | 1345 | 60 | -61 | 52.15 |
| GGCR-017 | 544182 | 3384525 | 1352 | 60 | -65 | 40.6 |
| GGCR-018 | 544100 | 3384523 | 1344 | 60 | -61 | 75 |
| GGCR-019 | 544173 | 3384566 | 1351 | 60 | -61 | 51.9 |
| GGCR-020 | 544038 | 3384557 | 1337 | 60 | -61 | 95.05 |
| GGCR-021 | 544077 | 3384580 | 1334 | 60 | -60 | 74.5 |
| GGCR-022 | 544132 | 3384334 | 1356 | 60 | -82 | 128.7 |
| GGCR-023 | 544178 | 3384246 | 1368 | 0 | -90 | 140.5 |
| GGCR-024 | 544178 | 3384130 | 1340 | 60 | -60 | 100.4 |
| GGCR-025 | 544242 | 3384167 | 1346 | 60 | -60 | 62.7 |
| GGCR-026 | 544281 | 3384144 | 1346 | 60 | -72 | 66.2 |
| GGCR-027 | 544197 | 3384095 | 1335 | 60 | -74 | 103.95 |
| GGCR-028 | 544236 | 3384118 | 1341 | 60 | -70 | 73.45 |
| GGCR-029 | 544233 | 3384000 | 1333 | 60 | -60 | 85.95 |
| GGCR-030 | 544191 | 3384276 | 1377 | 60 | -64 | 122.25 |
| GGCR-031 | 544171 | 3384288 | 1371 | 0 | -90 | 135.5 |
| GGCR-032 | 544226 | 3384088 | 1337 | 0 | -90 | 85.3 |
| Total Meters | 2055.85 | |||||
| GGCOR-001 | 544197 | 3384095 | 1481 | 60 | -45 | 110.4 |
| GGCOR-002 | 546947 | 3386620 | 1479 | 130 | 60 | 136.9 |
| GGCOR-003 | 546881 | 3386582 | 1468 | 60 | -60 | 188.3 |
| GGCOR-004 | 547013 | 3386572 | 1475 | 60 | -55 | 200.85 |
| GGCOR-005 | 546978 | 3386580 | 1473 | 60 | -45 | 118.3 |
| GGCOR-006 | 546937 | 3386644 | 1485 | 60 | -55 | 173.05 |
| GGCOR-007 | 546897 | 3386620 | 1474 | 60 | -55 | 203 |
| GGCOR-008 | 546842 | 3386589 | 1471 | 60 | -55 | 247.15 |
| GGCOR-009 | 546885 | 3386872 | 1483 | 60 | -60 | 169.15 |
| GGCOR-010 | 546926 | 3386695 | 1484 | 60 | -60 | 131.5 |
| GGCOR-011 | 546885 | 3386729 | 1469 | 60 | -50 | 75.2 |
| GGCOR-012 | 546856 | 3386770 | 1478 | 60 | -50 | 130 |
| GGCOR-013 | 546824 | 3386752 | 1496 | 60 | -50 | 135 |
| GGCOR-014 | 546564 | 3386885 | 1510 | 121 | -45 | 128.05 |
| Total Meters | 1883.8 | |||||
Core Samples
All diamond drilling was completed using HQ size drilling tools. The drilling crew boxes the core and GoGold employees transport it to the core shack where the core is geologically logged, photographed and marked for sampling. When the sample lengths are determined the core is sawn with a diamond blade core saw with one third of the core being bagged and tagged for assay. The remaining two third portion is returned to the core trays for storage and or for metallurgical test work.
Lab Preparation and Assay
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).
Quality Assurance / Quality Control and Data Verification
Quality assurance and quality control procedures include the systematic insertion of blanks, standards 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 quality assurance and quality control ("QA/QC") protocols.
Mr. David R. Duncan, P. Geo., is the qualified person as defined by National Instrument 43-101 and is responsible for the geological information of this release.
For further information please contact:
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
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 informationthat 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.
