TSX-listed GoGold Resources has released the results of a feasibility study for its Los Ricos South (LRS) project in Jalisco state, Mexico, outlining a plan for a mine that will operate over 15 years producing gold, silver and copper.

The study, which also includes a front-end engineering design component, calculates that the LRS project will produce 80-million payable silver equivalent ounces (SEOs), comprisng 41-million silver ounces, 434 000 oz of gold and 11-million pounds of copper.

LRS is projected to have an after-tax net present value (NPV) of $355-million, at a 5% discount rate, and an after-tax internal rate of return (IRR) of 28% under base case metal prices. The project’s economics improve further at higher metal prices, with an NPV of $469-million and an IRR of 34% based on spot prices of $30/oz silver and $2 608/oz gold.

The feasibility includes a re-engineered 2 000-t/d underground mine plan, focusing on bulk mining methods with an average underground mining width of 11 m. The study has successfully converted resources into proven and probable reserves of 10.2-million tonnes grading 276 g/t silver equivalent, containing 91-million SEOs.

Key metrics include initial capital costs of $227-million, with a two-year construction timeline and sustaining costs of $100-million over the life-of-mine (LoM). Average operating costs of $9.94/oz silver-equivalent and an all-in sustaining cost of $11.19/oz silver-equivalent over the first five years, rising to $12.32/oz over the LoM.

GoGold president and CEO Brad Langille said the company was ready to move forward. “This feasibility study has a very high level of detail, exceeding the normal feasibility study level of detail in the process plant design. Our expectation is that we will receive a positive outcome on our permit application for our underground mine by the end of March 2025,” he said.

GoGold has secured strong local community backing and is in advanced discussions with lenders to finalise project financing. The company is building its mining and technical services team in anticipation of construction, which will begin upon receiving the necessary permits.

Looking ahead, GoGold sees additional opportunities at Los Ricos South, focusing on expanding high-grade underground resources, while exploration at Los Ricos North is expected to gain momentum in 2025.