Make Kitco Your Homepage

GoGold delivers robust PEA for Los Ricos South with NPV of US$295M

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Today, GoGold Resources (TSX: GGD) released the results of its initial Preliminary Economic Assessment (“PEA”) at its Los Ricos South project located in Jalisco State, Mexico.

Highlights of PEA include after-tax NPV (using a discount rate of 5%) of $295 million and an after-tax IRR of 46% (base case), with a base case silver price of US$21.00/oz and gold price of US$1,550/oz.

PEA assumes a 11-year mine life producing a total of 69.6 million payable silver equivalent ounces (“AgEq”), consisting of 42.9 million silver ounces, 352,000 gold ounces and 4.5 million copper pounds.

Initial capital costs are $125 million, including $16 million in contingency costs, over an expected 18-month build, and additional sustaining capital costs of $62 million over the life of mine.

Average LOM operating cash costs are $8.65/oz AgEq, and all in sustaining costs are $11.35/oz AgEq.

“The acquisition of the Los Ricos district, only 22 months ago in March 2019, has proven to be a tremendous catalyst of growth for GoGold,” said President and CEO Brad Langille. “More importantly, this has been accomplished with the first of many targets in the Los Ricos district. This PEA demonstrates the strong economics of the district which will continue to expand as we drill additional targets,” concluded Langille.

GoGold Resources is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico. The company operates the Parral tailings mine in the state of Chihuahua and has the Los Ricos South and Los Ricos North exploration projects in the state of Jalisco.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.