Contact:
Steve Low, Corporate Development, GoGold Resources, T: 416 855 0435, E: This email address is being protected from spambots. You need JavaScript enabled to view it.
Category: Silver / Gold
- Published: 07 April 2016
- Written by Editor
GoGold Production Increase of 45% Over Previous Quarter
HALIFAX, April 7, 2016 - GoGold Resources Inc. (TSX:GGD.TO - News) ("GoGold", "the Company")reports that the Company produced 335,183 silver equivalent ounces for the second quarter ended March 31, 2016 which represents a 45 percent increase over the previous quarter. The Company sold 348,861 silver equivalent ounces during the quarter which was an increase of almost 60 percent over the previous quarter. The Parral project continues to be a low cost operation with costs averaging $6.78 per silver equivalent ounce and $2.73per silver ounce using gold as a bi-product credit.
Table 1. Key Performance Indicators
|
Key performance indicator*: |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
|
Total tonnes stacked |
405,596 |
468,287 |
375,734 |
332,076 |
538,965 |
+62% |
|
Recoverable Silver equivalent stacked |
723,077 |
801,780 |
600,508 |
439,125 |
615,121 |
+40% |
|
Gold production (oz) |
318 |
687 |
733 |
784 |
1,382 |
+76% |
|
Silver production (oz) |
292,267 |
356,617 |
252,300 |
171,047 |
222,388 |
+30% |
|
Silver equivalent production (oz)*** |
315,804 |
408,024 |
307,822 |
231,253 |
335,183 |
+45% |
|
Cash costs per Silver ounce** |
$4.98 |
$4.42 |
$3.59 |
$4.25 |
$2.73 |
-36% |
|
Cash costs per Silver equivalent ounce*** |
$5.61 |
$5.66 |
$5.65 |
$6.54 |
$6.78 |
+4% |
|
Operating costs per tonne stacked |
$8.33 |
$8.91 |
$10.60 |
$11.15 |
$8.61 |
-23% |
|
Realized silver price |
$16.03 |
$15.67 |
$14.46 |
$13.70 |
$14.57 |
+6% |
|
*Internal unaudited estimate **Using Gold as a by-product credit ***Gold is converted using actual realized prices |
Recent enhancements completed at the end of the quarter at the Parral project have increased nameplate stacking capacity from 5,000 tonnes per day (tpd) to 10,000 tpd and have also increased processing capacity at the Merrill-Crowe facility. During the second quarter ended March 31, 2016the company stacked at an average of 5,922 tonnes per day which was an increase of 64 percent over the previous quarter of 3,609 tpd. This translates into 615,121 recoverable silver equivalent ounces stacked on the heap leach pad during the quarter representing a 40 percent improvement over the previous quarter. "During the previous quarter our focus was on increasing the number of tonnes and recoverable ounces stacked on the pad," said Brad Langille, President and CEO. "Now that stacking rates have increased, shareholders can continue to expect a steady rise in production quarter over quarter for the remainder of the year."
GoGold expects to stack 800,000 to 900,000 recoverable silver equivalent ounces for the quarter ending June 30, 2016 which will translate into continued production growth for the quarter.
Mr. Robert Harris, P.Eng. is the qualified person as defined by National Instrument 43-101 and is responsible for the technical information of this release. All dollar figures have been expressed in USD.
About GoGold Resources
GoGold Resources (TSX:GGD.TO - News) is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico. The Company's Parral Tailings project is one of the lowest cash cost silver producers in the world. Headquartered in Halifax, NS, GoGold is building a portfolio of low cost, high margin projects. For more information visit gogoldresources.com.
CAUTIONARY STATEMENT:
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to buy of any of GoGold's securities in the United States.
This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the Parral tailings project, future operating margins, future production and processing, and future plans and objectives of GoGold, constitute forward looking information that involve various risks and uncertainties. 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 the continuance of GoGold and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates, and the performance of the Parral Expansion. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
Important factors that could cause actual results to differ materially from GoGold's expectations include exploration and development risks associated with GoGold's projects, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations of recovery rates, and global economic conditions. 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 securities regulators, including, but not limited to, GoGold's Annual Information Form. The forward-looking information contained in this release is made as of the date of this release.
SOURCE GoGold Resources Inc.
