GoGold Resources (TSX: GGD; OTCQX: GLGDF) has announced the filing of an NI 43-101 preliminary economic assessment (PEA) technical report for their Los Ricos North project located in Jalisco State, Mexico. This is the company’s second PEA completed within the Los Ricos District, with an updated mineral resource estimate and PEA for Los Ricos South expected to follow this summer.
The highlights of the PEA, based on a silver price of US$23/oz. and gold price of US$1,800/oz., include an after-tax NPV of $413 million with an after-tax IRR of 29%, and a 13-year mine life producing a total of 110 million payable silver-equivalent ounces. Initial capital costs are $221 million, and average life of mine operating cash costs of $9.50/oz. silver equivalent.
GoGold president and CEO Brad Langille stated that the technical report for the Los Ricos North details strong economic potential for project. He said Los Ricos North forms a pipeline of growth after Los Ricos South and that they are well positioned to develop Los Ricos South pending the results of upcoming studies.
The PEA was prepared by independent consultants P&E Mining Consultants, with metallurgical test work completed by SGS Canada, process plant design and costing by D.E.N.M. Engineering, and environmental and permitting led by CIMA Mexico.
For more information visit www.GoGoldResources.com.
