Mining News
GoGold delivers robust PEA for Los Ricos South with NPV of US$295M
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(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.
