GoGold Commences Construction of the Fully-Funded Los Ricos South Mine
GoGold begins construction on the fully-funded Los Ricos South project after market prices already reflected the development milestone.
GoGold Resources Inc. (GGD) has formally commenced site construction at its permitted Los Ricos South underground project in Jalisco, Mexico, according to a recent operations update. The company states it is fully financed with US$284 million in cash, zero debt, and ongoing Parral cash flow.
Underground mining contractors have been selected, and EPCM contractor M3 is on site. A construction manager has been appointed, and an earthworks contractor has mobilized to begin work at the plant site. Engineering efforts are approximately 85% complete for the detailed plant design, with the paste backfill plant design advancing. WSP is providing geotechnical support for the portal design.
All critical long-lead equipment has been ordered, including a SAG mill, crusher, tailings filter, Merrill-Crowe plant, conveyors, and pumps. A regional mitigation program has also been launched, including the planting of 20,000 trees for reforestation.
Portal construction is scheduled for the fourth quarter of 2026, with initial mine development targeted for January 2027. The first silver and gold pour is targeted for June 2028. No new production, cost, reserve, or financial results were disclosed in this release.
GoGold Resources Inc. (GGD) confirmed that construction has begun on schedule, validating its prior claims of being shovel-ready and fully funded. The company secured necessary permits in June 2026 and received board approval, setting the stage for the current execution phase.
The market appears to have already priced in the milestone. Following the Q3 earnings release, the stock closed at US$3.74 on August 12, 2026, and rose to US$4.23 by August 24, 2026, marking a 13.1% gain leading into the construction announcement. From the June 8 permit approval close of US$3.27, the stock had already appreciated approximately 29.4% prior to today’s release.
The announcement did not introduce new reserve or resource expansions, updated feasibility economics, a takeover, a first-time strategic investor, or changes to the funding structure.
GoGold Resources Inc. is a Canadian-based silver and gold producer focused on Mexico, with headquarters in Halifax, Nova Scotia. The company’s CEO is Brad Langille, and Bob Harris, P.Eng., serves as the non-independent qualified person for technical disclosure.
The company’s operating asset is the Parral tailings mine in Chihuahua, which is entering its twelfth year of operation. As of April 2026, the mine has a stated remaining life of 4 to 5 years.
In Jalisco, the Los Ricos South project is a fully permitted, board-approved development project. Construction has now begun, with a first pour targeted for June 2028. The feasibility study indicates an initial capital expenditure of US$227 million, with a prior disclosed net present value at a 5% discount rate of US$355 million. Additionally, the Los Ricos North project in Jalisco is an exploration and development project.