GoGold Resources anticipates issuing of underground permit in Mexico

Halifax, Nova Scotia-based GoGold Resources anticipates the issuance of the environmental permit for the US$148mn Los Ricos South (LRS) underground project in Mexico’s Jalisco state as final engineering is being completed.

At LRS, the Mexico-focused miner intends to advance the permitting process before making a construction decision.

In September, GoGold reported that it was in the final phases of completing a definitive feasibility study for LRS. The most significant change from the preliminary economic assessment is reworking the plan to focus on underground mining. 

The mine plan has now been re-engineered into an underground operation with a life of 12 years. 

“As we complete final engineering and anticipate the issuance of our permit for the Los Ricos South underground mine, we see Parral adding meaningfully to our cash flow on a go-forward basis,” CEO Brad Langille said in a release.

GoGold has the Parral tailings operation in Chihuahua and also the Los Ricos North exploration project in Jalisco. 

The Canadian company reported production of 406,150 silver equivalent ounces in Q3, consisting of 167,001oz of silver, 2,232oz of gold, 132t of copper and 100t of zinc.     

“The quarter yielded continuing production growth, and more importantly we saw a substantial increase in production in the month of September where the heap achieved equilibrium at a level generating significant free cash flow for that month,” GoGold said. 

“The addition of the zinc circuit, along with other optimizations, has not only paid off in a saleable zinc product and recycling of the associated cyanide, but also it appears that it has improved the leaching of gold and silver.”

Los Ricos North’s prefeasibility study and engineering reports will follow after Los Ricos South, it added.