GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) is pleased to announce the release of financial results for the quarter and year ending September 30, 2019 with record revenue of $27.0 million (all amounts are in U.S. dollars) from the sale of 1,758,307 silver equivalent ounces during the year.

Financial Highlights for the year ending September 30, 2019:

• Record revenue of $27.0 million, an increase of 28% from prior year’s record, from the sale of 1,005,899 silver and 8,752 gold ounces, at a realized price of $15.33 per silver equivalent ounce
• Record production of 1,781,080 silver equivalent ounces, an increase of 37% from prior year’s record
• Net income of $8.1 million ($0.05 per share)
• All in sustaining costs of $14.82 per silver equivalent ounce, average of $13.70 over last six months
• Cash costs of $11.80 per silver equivalent ounce
• Gain on sale of Santa Gertrudis royalty of $11.8 million
• Net working capital of $13.1 million available to fund operations and future exploration at Los Ricos

“The Company is in a strong financial position with Parral operating at record levels, and the drilling results to date at Los Ricos looking exceptional.  During the year, we were able to generate a significant gain on the sale of the Santa Gertrudis royalty, which combined with the gain on the marketable securities we took as consideration for that sale, generated $15 million in income, in addition to the $53 million realized last year on the sale of Santa Gertrudis.  Our team continues to demonstrate our ability to generate value for shareholders from exploration projects.,” Brad Langille, President and CEO stated.  “Our Company generated $2 million in cash from operations, excluding working capital adjustments, in the September quarter, which is showing that Parral is the engine which will drive our exploration of Los Ricos going forward.”

GoGold generated record revenue from record production for the year end September 30, 2019, with  cash costs per silver equivalent ounce of $11.80 for the year.  Production for the year was 1,781,080 silver equivalent ounces, consisting of 1,033,365 silver and 8,673 gold ounces, an increase of 37% from the prior year record.

On August 15, 2019, the Company acquired the Los Ricos project, which consists of 29 concessions in Jalisco, Mexico from private Mexican owners.  The concessions, along with an existing 2% net smelter royalty on the property, were acquired for share consideration of $5.4 million and cash consideration of $4.5, of which $3.9 is payable over 3 years as of September 30, 2019.  In addition, the Company spent $1.8 million during the year on drilling, which produced 62 holes totaling 8,919m of HQ size drill core, with assayed results received and reported on 50 drill holes as of September 30, 2019.

The Company continues to progress on construction of the previously announced SART plant at Parral, with construction nearing completion and commissioning set to begin in January as planned.  The SART plant is expected to bring important economic and technical benefits to the Parral facility. The main economic drivers are the recovery of a high-grade saleable copper sulfide product, the re-generation of cyanide, which is the largest single operating cost at Parral, and improved leaching efficiency of the heap. 

The monetization of the sale of Santa Gertrudis was completed with the final sale of the 2% net smelter royalty for $12 million which closed on November 7, 2018. An additional $3 million gain on the value of the marketable securities received from the sale of the royalty was recorded as of September 30, 2019. The royalty sale brought the total proceeds on the disposition of Santa Gertrudis to $95 million which the Company purchased in 2014 for $11 million and invested an additional $9 million for a total investment of $20 million. 

The quarter ending September 30, 2019 generated record quarterly revenues of $9.7 million on the sale of 572,435 silver equivalent ounces, at a realized price of $16.96 per ounce.  All in sustaining costs per ounce for the quarter were $13.78 per silver equivalent ounce.  The Company generated net income of $0.8 million during the quarter, and cash flow from operations before working capital of $2.0 million.

Following are tables showing summarized financial information and key performance indicators.

Board Appointment

On December 11, 2019, Brad Langille was appointed as a board member of the Company.

This news release should be read in conjunction with the consolidated financial statements for the year ended September 30, 2019, notes to the financial statements, and management’s discussion and analysis for the year ended September 30, 2019, which have been filed on SEDAR and are available on the Company’s website. 

Technical information contained in this news release with respect to GoGold has been reviewed and approved by Mr. Bob Harris, P.Eng., who is a qualified person for the purposes of NI 43-101.