GoGold Resources (TSX:GGD), has announced new drill findings from Los Ricos South, specifically within its Main area. Hole LRGG-23-302, among the recent discoveries, yielded an impressive high-grade intercept of 404 grams per tonne (g/t) of silver equivalent across a length of 30.2 meters. Within this, an interval of 9.7 meters demonstrated 1,110 g/t of silver equivalent, which further comprised a 0.8-meter segment that showed a significantly high-grade reading of 5,468 g/t.

The aim of the current Main area drill exercise is to more accurately identify high-grade segments of the present deposit suitable for bulk underground mining. These recently drilled holes add to the findings of 2019 and 2020, which played a crucial role in forming the initial Mineral Resource Estimate. This provided the basis for the Los Ricos South Preliminary Economic Assessment (PEA), published on January 20, 2021. The expectation is to incorporate these new holes in an updated Resource set for release by summer’s end.

Brad Langille, President and CEO, commented in a press release: “We’ve drilled an additional 100 holes in the Main zone at Los Ricos South since our initial July 2020 Mineral Resource Estimate and we believe they are proving to be quite impactful on our upcoming updated Resource and Preliminary Economic Assessment,” said Brad Langille, President and CEO. “Our team is diligently working to complete the studies expected to release before end of summer.”

GoGold Resources operates two exploratory ventures at the Los Ricos Property, situated in the state of Jalisco, Mexico. The Los Ricos South Project, initiated in March 2019, disclosed its initial Mineral Resource Estimate on July 29, 2020. The figures comprised a Measured & Indicated Mineral Resource of 63.7 million ounces of silver equivalent at a grade of 199 g/t across 10.0 million tonnes, and an Inferred Mineral Resource of 19.9 million ounces of silver equivalent at a grade of 190 g/t across 3.3 million tonnes. The project’s initial PEA, revealed on January 20, 2021, pointed towards an NPV5% of US$295M. The Eagle Concession, located next to the Main Area, was secured in October 2022.

The Los Ricos North Project, embarked upon in March 2020, publicized its initial Mineral Resource on December 7, 2021. The data included an Indicated Mineral Resource of 87.8 million ounces of silver equivalent at a grade of 122 g/t across 22.3 million tonnes, and an Inferred Mineral Resource of 73.2 million ounces of silver equivalent at a grade of 111 g/t across 20.5 million tonnes. The project’s initial PEA, declared on May 17, 2023, indicated an NPV5% of US$413M.

Highlights from the results are as follows:

Table 1: Drill Hole Intersections 

The Main area drilling campaign’s purposes is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining. These holes are in addition to those drilled in 2019 and 2020 which formed part of the initial Mineral Resource Estimate (“Resource”) upon which the Los Ricos South Preliminary Economic Assessment (“PEA”) was based upon when it was released on January 20, 2021. It is expected that these holes will be included in an updated Resource to be released by the end of the summer.

Table 2: Drill Hole Locations