Name of the Project
Los Ricos South (LRS) project.

Location
Jalisco state, Mexico.

Project Owner/s
Canada-based silver and gold producer GoGold Resources.

Project Description
A feasibility released in January 2025 envisages an underground mining operation with a 15-year mine life producing 80-million payable silver equivalent ounces comprising 41-million silver ounces, 424 000 oz of gold and 11-million pounds of copper.

Contract underground mining will be completed using the longitudinal sublevel longhole mining and cemented paste back filling of the mined-out stopes.
Average production of 7.3-million silver equivalent ounces is estimated over the first five years.

The process plant will produce saleable silver and gold doré bars and a copper precipitate, and will comprise conventional crushing and grinding followed by cyanide tank leaching. 

Back-end filtration is required to maximise water recycling (dry stack tailings), as well as a sulphidation, acidification reneutralisation and thickening (SART) circuit to recover cyanide back to the process and produce a saleable copper sulphide product.

GoGold also sees the opportunities for more near-mine exploration, with a focus on expanding more high-grade underground resources in LRS.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The feasibility study estimates a pretax net present value, at a 5% discount rate, of $555-million and an internal rate of return of 38.6%, with an after-tax payback of 2.6 years.

Capital Expenditure
$227-million, including $21-million in contingency costs.

Planned Start/End Date
The project is expected to take two years to build.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
P&E Mining Consultants (feasibility study); Ausenco Engineering Canada (design and cost estimates, and front-end engineering design); SGS Canada Lakefield (metallurgical studies); WSP (underground and openpit geotechnical studies); CIMA (environmental studies); Paterson & Cooke (paste backfill); BQE/D.E.N.M (engineering – SART circuit); and BCG (tailings geotechnical studies).

Contact Details for Project Information
GoGold Resources investor relations contact Steve Low, tel +1 416 855 0435 or email steve@gogoldresources.com.