Parral Tailings Project Santa Gertrudis Project · gogoldresources.com Santa Gertrudis Project...

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gogoldresources.com Santa Gertrudis Project Location: 180km North of Hermosillo, Sonora, Mexico Resource: 810,000 oz Au Indicated, 255,000 oz Au Inferred 4 Status: Vat Leach Facility under construction Target Q2 2017 The original mine produced 564,000 ounces of gold at an average grade of 2.13g/t but ceased activities due to low gold prices in 2000. As a past-producer, substantial infrastructure is already in place including pre-stripped pits, haul roads, water, and housing. GoGold’s initial PEA, released in 2014, shows a substantial increase over previous resource estimates. Relatively shallow deposit depths present an opportunity for low cost mining and the majority of mineral resources are oxide and amenable to heap leaching 4 . 4 Source: GoGold Press Release #18-2014, September 10, 2014 Parral Tailings Project Location: Hidalgo del Parral, Chihuahua, Mexico Status: Commercial Production Reserves: 35 Million oz Silver Equivalent (50:1) 1 Resource (M&I): 12.6 Million oz Silver Equivalent (71:1) 2 Located in the heart of Parral and host to 20 million tonnes of tailings left over from historic mining operations. GoGold’s PFS defined a reserve of 35 million ounces of silver equivalent (20.3Mt @ 38.4 g/t Ag and 0.31 g/t Au) and a pre-tax IRR of 80%. 1 GoGold recently added an additional measured and indicated resource of 5.77 Mt at 49 g/t silver and 0.26 g/t gold for an estimated 12.6 million silver equivalent ounces (71:1) through an exclusive option to process tailings material from the nearby Promotora Tailings site 2 . 1 Mineral reserve based on a cut-off grade of 0.34 g/t AuEq and incorporates an ore loss of 0% and dilution factor of 0%. AuEq = Au + (Ag/50), AgEq = Au x 50 + Ag. Source: “National Instrument 43-101, Independent Technical Report on the Parral Tailings Project, Chihuahua, Mexico” by The MDM Group, February 20, 2013. The study is based on US$1,475/oz. gold and US$29/oz. silver. 2 Source: GoGold Press Release #03-2015 February 18, 2015 GoGold Resources is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico. Brad Langille (President & CEO) and Terry Coughlan (Co-founder & COB) are experienced mine builders having previously developed the Ocampo Mine - one of Mexico’s largest gold and silver mines. Throughput and production at Parral continues to grow after doubling stacking capacity from 5000 to 10,000 tonnes per day and construction at Santa Gertrudis commenced in Q4, 2016. GoGold has established itself as a low-cost producer that should provide ample cash flow over the coming years. JANUARY 2017 Parral production capacity doubled in 2016 One of the lowest cost producers in Mexico Exceptional cash flow at today’s metal prices Vat Leach facility expected online Q2 2017 Focus on process improvements to increase margins PROPERTIES First Dore Bar Pour, June 2014 Parral Tailings Site Vat Leach Facility Construction continued on reverse continued on reverse TSX GGD

Transcript of Parral Tailings Project Santa Gertrudis Project · gogoldresources.com Santa Gertrudis Project...

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Santa Gertrudis ProjectLocation: 180km North of Hermosillo, Sonora, MexicoResource: 810,000 oz Au Indicated, 255,000 oz Au Inferred4

Status: Vat Leach Facility under construction Target Q2 2017

The original mine produced 564,000 ounces of gold at an average grade of 2.13g/t but ceased activities due to low gold prices in 2000. As a past-producer, substantial infrastructure is already in place including pre-stripped pits, haul roads, water, and housing.GoGold’s initial PEA, released in 2014, shows a substantial increase over previous resource estimates. Relatively shallow deposit depths present an opportunity for low cost mining and the majority of mineral resources are oxide and amenable to heap leaching4.

4 Source: GoGold Press Release #18-2014, September 10, 2014

Parral Tailings ProjectLocation: Hidalgo del Parral, Chihuahua, MexicoStatus: Commercial ProductionReserves: 35 Million oz Silver Equivalent (50:1)1

Resource (M&I): 12.6 Million oz Silver Equivalent (71:1)2

Located in the heart of Parral and host to 20 million tonnes of tailings left over from historic mining operations. GoGold’s PFS defined a reserve of 35 million ounces of silver equivalent (20.3Mt @ 38.4 g/t Ag and 0.31 g/t Au) and a pre-tax IRR of 80%.1

GoGold recently added an additional measured and indicated resource of 5.77 Mt at 49 g/t silver and 0.26 g/t gold for an estimated 12.6 million silver equivalent ounces (71:1) through an exclusive option to process tailings material from the nearby Promotora Tailings site2.

1 Mineral reserve based on a cut-off grade of 0.34 g/t AuEq and incorporates an ore loss of 0% and dilution factor of 0%. AuEq = Au + (Ag/50), AgEq = Au x 50 + Ag. Source: “National Instrument 43-101, Independent Technical Report on the Parral Tailings Project, Chihuahua, Mexico” by The MDM Group, February 20, 2013. The study is based on US$1,475/oz. gold and US$29/oz. silver.

2 Source: GoGold Press Release #03-2015 February 18, 2015

GoGold Resources is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico.Brad Langille (President & CEO) and Terry Coughlan (Co-founder & COB) are experienced mine builders having previously developed the Ocampo Mine - one of Mexico’s largest gold and silver mines. Throughput and production at Parral continues to grow after doubling stacking capacity from 5000 to 10,000 tonnes per day and construction at Santa Gertrudis commenced in Q4, 2016. GoGold has established itself as a low-cost producer that should provide ample cash flow over the coming years.

JANUARY 2017

Parral production capacity doubled

in 2016

One of the lowest cost producers in

Mexico

Exceptional cash flow at today’s

metal prices

Vat Leach facility expected online

Q2 2017

Focus on process improvements to increase margins

PROPERTIES

First Dore Bar Pour, June 2014

Parral Tailings Site Vat Leach Facility Construction

continued on reversecontinued on reverse

TSXGGD

Cautionary StatementThis GoGold Resources Inc. (“GoGold”) document may contain “forward-looking information”, as defined in applicable Canadian securities legislation. Forward-looking information typically contains statements with words such as “plans”, “expects”, “anticipates”, “budgets”, “forecasts”, “strategy”, “goals”, “objectives”, “could”, “would”, “should”, “may”, “might”, “intends”, “believes”, “potential”, “target”, “targeting” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information is based on the current estimates, opinions and beliefs of GoGold, as well as various assumptions and information currently available to GoGold. Although GoGold believes the expectations expressed in such forward-looking information are based on reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with additional funding requirements, reserve and resource estimates, commodity prices, hedging activities, global economic conditions, exploration, development and operating risks, illegal miners, political and foreign risk, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, losses and write-downs, restrictions contained in future loan facilities, dependence on key employees, possible variations of ore grade or recovery rates, failure of plant, equipment or process to operate as anticipated, accidents and labour disputes. For additional information with respect to risk factors applicable to GoGold, reference should be made to GoGold’s continuous disclosure materials filed from time to time with Canadian securities regulatory authorities, including, but not limited to, GoGold’s annual and interim Management Discussion and Analysis and the “Risk Factors” section of the Annual Information Form dated December 16, 2015. Any financial outlook or future-oriented financial information in this document, as defined by applicable securities legislation, has been approved by management of GoGold as of the date of this factsheet. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such outlook or information should not be used for purposes other than for which it is disclosed in this factsheet. The forward-looking information contained in this factsheet are made as of March 24, 2016 and GoGold does not undertake to update publicly or revise the forward-looking information contained in this factsheet, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Mr. Terence F. Coughlan, P.Geo, Chairman of the Board of Directors of GoGold, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this presentation.

GoGold Resources Inc.Suite 1301 - 2000 Barrington StreetHalifax, Nova ScotiaB3J 3K1 CANADA

phone: 902.482.1998email: [email protected]: gogoldresources.com

For more information, please contact us.

Operating Highlights and Project Performance ($US)5 Resource Indicated (Au oz) 810,000 ([email protected]/t)Resource Inferred (Au oz) 255,000 ([email protected]/t)Production (Au oz / year) 56,000Life of Mine 12 YearsNet Cash Flow, after-tax $232 MillionCash Costs $622 per oz AuAll In Sustaining Cost $699 per oz AuInitial CAPEX $32 Million (incl. 20% contingency)NPV, after-tax (5% Discount) $150 MillionIRR, after-tax 58%Payback, after-tax 1.7 yearsSustaining Capital $16 MillionLow Gold Price Resilience 34% IRR @ $1000/oz Au

In February 2015, the Mexican government granted the environmental permit for the Santa Gertrudis gold mine.In May 2015, GoGold released results of its extensive drill program designed to confirm historic mineralization and test targets in the immediate vicinity of the open pit resource from the 2014 PEA. Three targets have been identified as the initial pits that the company could restart mining and should represent the first four years of feed. Construction has commenced on a Vat Leach facility and is expected to begin production in Q2 2017.

Highlights of Recent Drilling (May 2015)6

Hole Interval (m) Gold Grade (g/t)

Dora Deposit

GGDOR-001 38.4 6.79

GGDOR-008 6.7 8.21

GGDOR-010 37.6 8.80

GGD0R-011 21.8 4.60

Corral Deposit

GGCOR-009 6.5 5.58

GGCOR-011 17.2 3.58

Cristina Deposit

GGCR-001 37.7 1.17

GGCR-002 44.9 1.04

GGCR-004 31.4 1.18

5 Base case evaluation: $1,250/oz Au. The engineering and economic modelling work undertaken on the Santa Gertrudis property to date is considered to be at conceptual levels of study only. According to NI 43-101 disclosure guidelines, a Preliminary Economic Assessment is considered preliminary in nature and includes the use of Inferred resources which are considered too speculative geologically to apply economic considerations that would enable them to be categorized as mineral reserves. As such, and according to the NI 43-101 Disclosure Guidelines, it is not possible to declare a mineral reserve.

6 Source: GoGold Press Release #08-2015 May 05, 2015

Recent Performance Highlights3

Key performance indicator: Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Total tonnes stacked 375,734 332,076 538,965 631,219 332,628

Recoverable silver equivalent ounces stacked†

601,000 439,000 615,000 776,000 416,000

Gold production (oz) 733 784 1,382 2,218 1,260

Silver production (oz) 252,300 171,047 222,388 191,618 69,358

Silver equivalent production (oz)* 307,822 231,253 335,183 361,705 156,636

Cash cost (per silver equivalent oz)† $5.65 $6.54 $6.58 $6.36 $7.50

Cash cost (per silver oz)†,‡ $3.59 $4.25 $2.42 -$2.59 -$5.20

AISC (per silver equivalent oz) †,‡ $7.30 $10.23 $9.25 $9.59 $21.24

* “Silver equivalent production” includes gold ounces produced and sold converted to a silver equivalent based on a ratio of the average realized metal price for each period. The ratio for each of the periods presented was: Q4 2015 – 76, Q1 2016 – 77, Q2 2016 – 82, Q3 2016 – 74, Q4 2016 – 69

† Using Gold as a by-product credit‡ Gold is converted using actual realized prices

3 Source: GoGold MD&A for Year Ending September 30, 2016. December 14, 2016.

Parral Tailings Project (cont’d) Santa Gertrudis Project (cont’d)

San Diego - Breccia HillLocation: Durango, MexicoStatus: Exploration

Located within the company’s San Diego Project, The Breccia Hill “Open Pit Target” contains multiple geological exploration targets each representing potential bulk mineable and / or underground targets. Surface and underground samples have been gathered within the area and numerous unexplored targets still remain providing excellent potential for long-term exploration upside within this area alone.The Company has taken a total of 918 samples within the open pit target area and the arithmetic average assay of all 918 samples is 1.23 g/t gold and 13.15 g/t silver.

Gold and Silver Results from drilling at Breccia Hill7

Drill Hole From (m) To (m) True Width (m) Au(g/t) Ag(g/t) Au Eq8

GG11 49 154 84 1.98 20.5 2.43

Including 49 63 13 3.56 10.6 3.79

Including 81 154 55 2.18 26.8 2.77

GG9 0 129 70 1.18 13.5 1.47

Including 13 44 17 3.23 31 3.9

Including 81 113 23 1.21 9.5 1.41

GG7 0 50 40 0.76 11.1 1

Including 24.6 33 7 3.83 24 4.35

GG7 89.6 101 10.5 1.78 16.1 2.12

7 Source: GoGold Press Release #01-2012 January 17, 20128 Silver/Gold ratio of 46:1 used for Gold Equivalent.(Metallurgical recoveries and net smelter returns are assumed to be 100%)

GoGold Geological Team at Amelia Open Pit Site