GoGold updates Los Ricos South PEA
GoGold Resources has released an updated preliminary economic assessment (PEA) and resource estimate for its Los Ricos South project in Jalisco, Mexico, which includes the addition of the Eagle concession, acquired in October 2022, as well as additional drilling completed in the Main Zone since the release of the January 2021 PEA.
The project would feature both open pit and underground mines, and would start with a 1,750tpd process plant which would be expanded to 4,000tpd in year three. It would produce an average of 8Moz of silver equivalent for 11 years at an all in sustaining cost of US$9.02/oz.
Overall, it would produce 47Moz of silver, 493,000oz of gold and 14Mlb of copper, or 88Moz of silver equivalent.
The project would generate an after-tax net present value (NPV) of $458 million at a 5% discount rate and an internal rate of return of 37% following an initial capital cost of $148 million using base case metal pricing of $23.75/oz silver and $1,850/oz gold. Expansion capital is estimated at $69 million and sustaining capital at $72 million.
"The projected cash flows are very substantial, especially when combined with our Los Ricos North PEA that was completed in March. …We now have a total NPV of $871 million in our Los Ricos district," said GoGold Resources chief executive Brad Langille.
A prefeasibility study is underway, which the company expects to publish later this year.
Resource
The Los Ricos South resource update included a 55% increase in measured and indicated silver equivalent ounces from the January 2021 resource and a 39% increase grade. The measured and indicated resource is now 11.1Mt grading 1.43gpt
Gold, 151gpt silver and 0.11% copper containing 511,000oz of gold, 53.8Moz of silver and 27.3Mlb of copper.
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