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GoGold reports NPV of $413M for Los Ricos North initial PEA

Kitco Media
By Vladimir Basov
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(Kitco News) - GoGold Resources (TSX: GGD) today released the results of its initial preliminary economic assessment (PEA) at its Los Ricos North project located in Jalisco State, Mexico.

Highlights of the PEA, with a base case silver price of US$23/oz and gold price of US$1,800/oz, include an after-tax NPV (using a discount rate of 5%) of $413 million with an after-tax IRR of 29%.

The project, which has been envisioned as an open pit mining operation, has a 13-year mine life producing a total of 110.3 million payable silver equivalent ounces, consisting of 68.0 million silver ounces, 221,700 gold ounces, 22.8 million pounds of copper, 144.1 million pounds of lead and 242.2 million pounds of zinc.

The project’s initial capital costs amounted to $221 million, including $29 million in contingency costs, over an expected 18 month build, with additional expansion capital of $137 million and sustaining capital costs of $6 million over the life of mine.

Average LOM operating cash cost is $9.50/oz AgEq, and all-in sustaining cost (AISC) is $9.68/oz AgEq. Average annual production is 8.8 million AgEq oz in years one through twelve.

"This is a first look at the strong economics around our Los Ricos North mineral resource with average annual production of 8.8 million AgEq oz at a first quartile AISC of $9.68/oz AgEq. Los Ricos North forms a pipeline of growth after the construction of Los Ricos South, which we see as a high grade bulk underground mine targeted to be our first deposit advanced to production. We look forward to the updated Los Ricos South mineral resource including the Eagle Zone and an updated PEA to be completed this summer," said President and CEO Brad 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.

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Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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