GoGold boosts Q4 production by 36% as Los Ricos South in Mexico nears key decisions

Mexico-focused GoGold Resources (TSX: GGD) increased production at its Parral tailings operation by 36% last quarter, showing strong momentum as it heads into a transformative 2025.The legacy tailings-processing Parral operation, in Chihuahua state, produced 551,337 oz. of silver-equivalent in the fourth quarter, including 226,343 oz. silver, 3,213 oz. gold and 161 tonnes of zinc.GoGold’s immediate priorities include releasing a definitive feasibility study (DFS) “imminently” for its Los Ricos South project in Jalisco, an asset said to have some of the highest silver content globally. It plans to secure underground mining permits by March and finalize project financing. A construction decision is to follow soon after.Mining analysts Kevin O’Halloran of BMO Capital and Brandon Gaspar of SCP Resource Finance see these milestones as key to GoGold’s growth.“Key milestones anticipated over the next 12 months present a compelling re-rate opportunity for GoGold,” O’Halloran said in a note on Wednesday.SCP’s Gaspar called Los Ricos an “attractive development asset,” citing its high silver content in the Americas. The analyst views the asset as a potential acquisition target.Cash flowParral is a cornerstone operation, they said. It’s cash flow supports the company’s bid to decide on the $221 million Los Ricos build this year.CEO Brad Langille attributed Parral’s improved performance to the new SART zinc circuit, completed last year. It boosted precious metal recovery and raised cash reserves to C$76 million. A sulphidization, acidification, recycling and thickening circuit is a process that improves gold and silver recoveries. This is important for ores with soluble copper or other base metals.“Parral’s optimized circuit has exceeded expectations, boosting gold and silver leachability while contributing record-high zinc production,” Langille said Wednesday in a release.A May 2023 preliminary economic assessment on Los Ricos South estimated construction costs at $221 million. The study projected a 13-year mine life, an after-tax net present value of $413 million (using a 5% discount rate) and an internal rate of return of 29%. The PEA base case was completed using a price of $23 per oz. for silver and $1,800 per oz. for gold.Exploration plansLangille confirmed that exploration at Los Ricos South would continue during construction to find more resources.As of 2023, Los Ricos South hosts total measured and indicated resources of 11.1 million tonnes grading 1.4 grams gold per tonne, 151 grams silver and 0.1% copper for 511,000 oz. contained gold, 53.8 million oz. silver and 27.3 million lb. copper metal.GoGold also aims to advance Los Ricos North project, 25 km away, toward permitting. It is after the deposit’s high silver content—58% of contained metals are silver and 30% are gold. The indicated resource for Los Ricos North is 22.3 million tonnes at 122 grams silver-equivalent per tonne for 87.8 million oz. silver-equivalent metal.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com