GoGold moves Los Ricos South toward build

Executive Summary

• GoGold Resources Inc. has advanced its Los Ricos South project in Jalisco, Mexico, to the execution phase, initiating detailed design activities and ordering long-lead items.
• The company has selected an underground mining contractor (Cominvi S.A. de C.V.) and achieved significant progress in the detailed design of the underground mine, plant, and SART facility.
• CEO Brad Langille stated the project is "shovel ready" pending permit issuance, supported by approximately $250 million in cash and cash flow from the Parral operation.

Key Details

• Project Phase: Advanced to execution phase for Los Ricos South project (Jalisco, Mexico).
• Contractors:
  • Underground Mexican mining contractor selected: Cominvi S.A. de C.V.
  • Detailed plant design by M3 Mexicana S de RL de CV.
  • Contract issued for detailed design of the paste plant.
• Design Progress:
  • Detailed underground mine design and planning: Advanced.
  • Detailed plant design: 55% complete.
  • Detailed SART (sulphidization, acidification, recycling and thickening) plant design: 70% complete.
  • Design of DSTF (dry stack tailings facilities): Advanced.
• Procurement & Equipment:
  • Identified suppliers and preparing to order a new SAG grinding mill in the coming weeks.
• Infrastructure & Utilities:
  • Supply contract reached with Comision Federal de Electricidad (CFE) for project grid power supply from the Yesca Hydro dam.
  • Engineering of the power line is in progress with local electrical company Sistema; most routing will use existing CFE easements/right of ways.
  • Water supply assessments (surface and ground) are well advanced.
• Geotechnical: All site geotech work to support design programs has been completed.
• Financial Position: Approximately $250 million (U.S.) in cash on hand.
• Operational Context: Cash flow from the Parral operation is supporting the development.

Notable Quotes

• "The advancement of the Los Ricos underground project marks an important milestone in the growth of the company... The progress to date will ensure a quick launching of site construction once the permit is issued, we are shovel ready. We have assembled a strong Mexican team to construct, commission and ramp up production. With approximately $250-million (U.S.) in the bank and the cash flow that our Parral operation is generating, we look forward to getting under way in Los Ricos to the benefit of the local community and all the stakeholders." — Brad Langille, President and CEO