GoGold Resources Announces Filing of Feasibility Study for Los Ricos South Project
GoGold Resources Inc. (GGD on TSX, GLGDF on OTCQX), a Canadian mining company, recently announced the filing of a National Instrument 43-101 Feasibility Study Technical Report for its Los Ricos South (LRS) Project located in Jalisco State, Mexico. The FS includes significant updates compared to the Preliminary Economic Assessment (PEA) released in September 2023.
Mineral Resource Estimate and Mine Plan
The updated Mineral Resource Estimate (MRE) in the FS reflects an increase in contained gold ounces, totaling 1.3 million ounces (Moz) Indicated and 1.6 Moz Inferred, compared to the 1.1 Moz Indicated and 1.4 Moz Inferred in the PEA. The FS also introduces a re-engineered 2,000 tonne per day (tpd) underground mine plan, an improvement from the 1,500 tpd open pit mining plan in the PEA.
Economic Analysis
The FS’s economic analysis indicates a pre-tax net present value (NPV) of $331 million and a post-tax NPV of $218 million, both at a discount rate of 5%. The internal rate of return (IRR) is estimated at 22.4% pre-tax and 14.4% post-tax. The payback period is projected at 2.5 years.
Impact on GoGold and the Mining Industry
For GoGold, the filing of the FS represents a significant step forward in the development of the LRS Project. The updated MRE and increased mining capacity will contribute to the company’s growth and potentially lead to increased investor interest. Furthermore, the successful execution of the project could set a positive trend for the mining industry in Mexico, which has seen a decline in mining investment due to regulatory challenges.
Impact on the Global Mining Sector and Economy
The successful development of the LRS Project could contribute to the global gold mining sector’s growth, which has been experiencing a decline in production due to aging mines and decreased exploration spending. The increased production from the LRS Project could help meet the global demand for gold, contributing to the stability of the gold price. Additionally, the potential increase in investor interest in GoGold could lead to increased investment in the mining sector as a whole, boosting economic growth.
Conclusion
GoGold Resources’ filing of the FS for its Los Ricos South Project marks a significant milestone in the development of the project. The updated MRE, re-engineered mine plan, and positive economic analysis position the LRS Project for success, potentially contributing to GoGold’s growth and setting a positive trend for the mining industry in Mexico. Furthermore, the successful execution of the project could have a positive impact on the global mining sector and economy by increasing gold production and attracting investment.
- GoGold Resources files FS for Los Ricos South Project
- Updated MRE: 1.3 Moz Indicated and 1.6 Moz Inferred
- Re-engineered 2,000 tpd underground mine plan
- Pre-tax NPV: $331 million; post-tax NPV: $218 million
- IRR: 22.4% pre-tax and 14.4% post-tax
- Payback period: 2.5 years
- Positive impact on GoGold, Mexican mining, and global mining sector
