HALIFAX, Aug. 15, 2013 /CNW/ – GoGold Resources Inc. (TSX: GGD) (“GoGold”) is pleased to announce that it has received the environmental permits for mine construction from the Mexican Department of Environment (Semarnat). The permit includes acceptance of the environmental impact assessment and the change of land use permit, for its Parral Tailings Project in Chihuahua State Mexico. The Parral Tailings Project construction is expected to start imminently with commissioning taking place during the first quarter of 2014.
Terry Coughlan, president and chief executive officer of GoGold, states: “This is yet another milestone for GoGold in the development of the company. Final design, engineering, and permitting are now completed. It is anticipated that the construction phase will take approximately seven months. We look forward to building a high-quality project that should deliver significant economic benefit to our shareholders.”
Parral has a reserve of 35 million silver equivalent ounces and a pre-tax internal rate of return (“IRR”) of 80%. The study projects an initial capital cost of $35 million and a life of mine (“LOM”) of 12 years with an average annual production of 1.8 million silver equivalent ounces* (1.2 million ounces of silver and 11,000 ounces of gold). The mine production is planned at 5,000 tonnes per day (“tpd”) on a conventional heap leach with a sustaining capital of $27.5 million over LOM. The Pre-Feasibility Study on the Parral Tailings Project in Chihuahua, Mexico was prepared by The MDM Group of South Africa, in accordance with the requirements of Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects”. (“NI 43-101”)
The study includes a LOM reserve average silver grade of 38.4 grams per tonne (“g/t”) silver and 0.31 g/t gold and a recovery of 58% for silver and 64% for gold. Cash operating cost for silver of $6.48 an ounce using gold as a by-product credit. This project as outlined in the Pre-Feasibility Study has a pre-tax IRR of 80%, with pre-tax Net Cash Flow of $230 million and a pre-tax Net Present Value (“NPV”) of $159 million using a 5% discount rate. The study is based on a gold and silver price of US$1,475/oz. gold and US$29/oz. silver. Payback for the project is expected in the first 16 months of production.
Mr. Terence Coughlan, P.Geo, is a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects and has approved the scientific and technical information in this release.
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 potential mineralization and reserves, exploration results, and future plans and objectives of GoGold, 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, and the accuracy of mineral resource estimates. 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 risks detailed herein, 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 are made as of the date of this release and GoGold does not undertake to update publicly or revise the forward-looking information contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
No regulatory authority has approved or disapproved the adequacy or accuracy of this news release.
SOURCE GOGOLD RESOURCES INC.For further information:
Terence F. Coughlan, President and CEO,
Sean Tufford, Vice President, Corporate Development
GoGold Resources Inc.,
T: 902 482-1998
F: 902 442-1898