GoGold Resources Inc. (TSX: GGD) is a Canadian-based, mineral resource company with active development and exploration properties in Mexico.
The company’s development property, The Parral Tailings Project, is in Chihuahua State, Mexico and is currently fully funded and permitted and in construction of a heap leach facility that will process the tailings.
The Parral Tailings Project
The Parral Tailings Project is located in the heart of the Mexican silver belt. This 141 hectare property is host to a large tailings repository left over from over 300 years of operations at the historical Mina La Prieta silver and base metal mine. Inefficiencies in older recovery methods have left significant amounts of gold and silver in the 21.3 million tonnes of tailings which GoGold plans to recover.
The completion of a Pre-Feasibility Study on its Parral Tailings project in Chihuahua State, Mexico defined a reserve of 35 million Silver Equivalent Ounces and a pre-tax internal rate of return (“IRR”) of 80%. The study projects an initial capital cost of $35 million and a life of mine (“LOM”) of 12 years with an average annual production of 1.8 million Silver Equivalent Ounces* (1.2 million ounces of silver and 11,000 ounces of gold). The mine production is planned at 5,000 tonnes per day (“tpd”) on a conventional heap leach with a sustaining capital of $27.5 million over LOM. The Pre-Feasibility Study on the Parral Tailings Project in Chihuahua, Mexico was prepared by The MDM Group of South Africa, in accordance with the requirements of Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects”. (“NI 43-101”) (*50:1 used for Silver Equivalent Calculation)
Parral Pre-feasibility Highlights
|Reserves (Silver Equivalent Ounces – 50:1)||35 Million|
|Capital Cost||$35 Million|
|Sustaining Capital||$27 Million|
|Silver Eq Oz. / Per Year||1.8 Million|
|Cost per Oz. Ag (Au as by-product)||$6.48|
|Net cash flow, pre-tax (LOM)||$230 Million|
|Pre-tax NPV (5% Discount)||$159 Million|
|Payback Period||16 Months|
|Life of Mine||12 Years|
The study includes a LOM reserve average silver grade of 38.4 grams per tonne (“g/t”) silver and 0.31 g/t gold and a recovery of 58% for silver and 64% for gold. Cash operating cost for silver of $6.48 an ounce using gold as a by-product credit. This project as outlined in the Pre-Feasibility Study has a pre-tax IRR of 80%, with pre-tax Net Cash Flow of $230 million and a pre-tax Net Present Value (“NPV”) of $159 million using a 5% discount rate. The study is based on a gold and silver price of US$1,475/oz. gold and US$29/oz. silver. Payback for the project is expected in the first 16 months of production. Investors are cautioned that the Pre Feasibility Study is considered preliminary in nature and there is no certainty that the pre feasibility will be realized.
San Diego Project
The massive 71,495 hectare San Diego property is part of the Sierra Madre Occidental Gold-Silver Belt, one of the largest epithermal precious metal regions in the world and host to the majority of Mexico’s gold and silver deposits.
The San Diego area contains an epithermal gold/silver system that extends for more than 35 kilometres. Widespread gold in quartz veins, breccias and stockworks occurs over the length of the system. Gold and silver are exposed at the surface and the hillsides are punctuated with dozens of small hand dug mines. Although the district has been mined on a small scale since the 1700s there has been very little modern exploration until now.
The property was assembled over a two-year period by working with local officials, geologists, contractors and inhabitants to negotiate and consolidate more than 20 individually attractive claims. Exploration work during that time included recognisance sampling which identified gold and silver in veins and in large disseminated alteration zones along the entire strike of the system.
The property contains multiple geological exploration targets, each representing potentially impressive bulk mineable and/or underground operations. To date, over 10,000 gold, silver, and copper samples have been gathered from just a few exploration targets within the property. Numerous unexplored targets still remain, providing excellent potential for long-term exploration upside.
This well-established mining region features supportive local inhabitants, cooperative local and district governments, and existing infrastructure including local workforce, power to property, road access, accommodations and water. In addition, a new highway is scheduled to be completed shortly.
Management & Directors
Mr. Terence F. Coughlan, P.Geo
President, CEO, and Director
Mr. Coughlan, of Dartmouth, Nova Scotia, holds a B.Sc. (Geology) degree from Saint Mary’s University (1987) and has been actively involved in the mineral resource industry since 1984. Mr. Coughlan was director of Gammon Gold Inc., a mineral exploration company which traded on the TSX and NY Stock exchanges, and served as Vice President and Director of that company from 1997 to December 2003. Mr. Coughlan was Vice President of Acadian Mining Corporation from 2003 to February, 2010 and a director of Acadian Mining Corporation from 2003 until November, 2009. Mr. Coughlan was a Director of Royal Roads Corp. from August, 2008 to February, 2010 and is a qualified person as defined by National Instrument 43-101.
Mr. Bradley Langille
Mr. Langille was the co-founder of both Gammon Gold Inc. and Mexgold Resources Inc. and served as a Director and Chief Executive Officer of both companies. Mr. Langille successfully developed both company’s projects from grass roots to commercial production in Mexico, raising in excess of $500 million for the development and construction of both mines. Mr. Langille was an integral part of the growth and success of Gammon Gold Inc., and Mexgold Resources Inc.. Mr. Langille directed the growth and development of the Ocampo mine and the El Cubo mine from 1999 through 2007. Mr. Langille was Strategic Advisor for Nayarit Gold Inc. from 2007 to 2010 and with his guidance developed the Orion Project from initial stages through scoping study and was instrumental in the company being acquired by Capital Gold in 2010.
Mr. Dana M. Hatfield CA
Chief Financial Officer and Director
Mr. Hatfield, of Halifax, Nova Scotia, has over 15 years of financial leadership in increasingly senior roles. Prior to joining GoGold Resources Inc., Mr. Hatfield served as CFO for Brigus Gold Corp., Senior Vice President Finance for AuRico Gold Inc., and Director of Finance with the Eastern Canada division of Sysco Corporation where Mr. Hatfield oversaw financial reporting, internal controls, budgeting and planning, equity and debt financings, and all operational finance functions. Proir to this, he was a Senior Manager with an international accounting firm advising various public companies on Canadian and US stock exchange regulations, equity financings, and general financial management. Mr. Hatfield is a Chartered Accountant and has a Bachelor of Commerce degree from Dalhousie University in Halifax, Nova Scotia.
Mr. Daniel Davies Whittaker, MBA, CFA
Executive VP, Chief Administrative Officer, and Corporate Secretary
Mr. Whittaker, of Halifax, Nova Scotia, served as the President and CEO, Chief Financial Officer, Chairman and/or Director of Ucore Uranium Inc., a Canadian mining company and its predecessor company, Birchpoint Capital Inc., a capital pool company from January 2006 to March 2008. He also served on the board of directors of Merrex Gold Inc., a Canadian mining company from June 2006 to January 2009. He also served as the President and CEO, Chief Financial Officer, VP, Secretary and/or a director of Jilbey Gold Exploration Ltd., a Canadian mining company from 1995 to August, 2005 when Jilbey was merged with a wholly-owned subsidiary of High River Gold Mines Ltd. by plan of arrangement. He holds a Bachelor of Arts (Economics) Degree and a Masters of Business Administration from the Richard Ivey School of Business at the University of Western Ontario obtained in 1981 and 1983 respectively. He also holds the Chartered Financial Analyst designation from the CFA Institute obtained in 1995.
Robert Harris, P. Eng.
Chief Operating Officer
Mr. Harris brings over 20 years of experience in project evaluation, feasibility assessments and project development to the Company. Mr. Harris was responsible for the development of the Youga open pit gold mine, which is currently in production in Burkina Faso at a rate of 85,000 ounces per year. He was also responsible for the feasibility evaluation and initial development of the Samira Hill Open pit mine in Africa which has been in production since 2004. He spent 12 years with Etruscan Resources Inc. in the capacity of Technical Director and then Vice President Operations, where he was responsible for many feasibility studies and project developments mainly in Africa. Since 2010 he has been a consultant to the mining industry on feasibility and development matters.
Mr. Harris is a member of the Association of Professional Engineers of Nova Scotia. He holds a Bachelor (Honors) Degree in Science and a Masters in Science in Engineering from the University of New Brunswick, and a business diploma from Saint Mary’s University.
Mr. Sean A. Tufford
Vice President, Corporate Development
Mr. Tufford, of Dartmouth, Nova Scotia has been actively involved in the mineral resource industry since 2009 having held the position of Director of Investor Relations for Linear Gold Corp, and following the successful merger with Apollo Gold Corporation in 2010, held the same position for Brigus Gold Corp. Mr. Tufford was also involved with shareholder communications for Linear Metals Corporation. Prior to entering the mining industry, Mr. Tufford held executive level marketing positions for companies including M5 Marketing Communications and Provincial Airlines Limited. Mr. Tufford brings energy and an international roster of industry contacts to his position with GoGold Resources Inc. with an extensive list of government, financial, institutional and retail connections. In August 2012, Mr. Tufford was appointed Chairman of the Board of Bridgeway Academy a well-respected school for children with learning disabilities. Mr. Tufford is a registered prospector in the Province of Nova Scotia.
Mr. Phillip Gaunce, CA
Since 1990, Mr. Gaunce has been the President of Alfred J. Bell and Grant Limited, a Nova Scotia based insurance brokerage. Mr. Gaunce has been a past board member and audit committee member at the IWK Health Centre from September, 2001 to September, 2007. He served on the Audit Committee at the IWK Health Centre from April, 2003 until September, 2007. Mr. Gaunce has been a member of the Audit Committee for the IWK Foundation since October, 2008. Mr. Gaunce has been a board member and audit committee member for RediShred Capital Corp since October, 2006. Mr Gaunce received his Bachelor of Commerce degree from Saint Mary’s University in 1984 and his CA designation in 1986.
Mr. George F. Waye, FCA
Mr. Waye is a resident of Halifax, Nova Scotia and is a retired partner of Ernst & Young LLP, where he worked for 39 years in Montreal and then in Halifax. Mr. Waye during his career served private and public sector clients in various industries headquartered throughout Canada, the United States, the Caribbean, the United Kingdom and Europe. Mr. Waye obtained his Bachelor of Commerce from Dalhousie University in 1970 and his CA designation in 1972. Mr. Waye is a Trustee of The YMCA of Greater Halifax/Dartmouth, previously serving as the Chairperson of its Board of Directors.
Mr. Terrence R. Cooper, Q.C.
Mr. Cooper has been practicing law in Nova Scotia for the past forty years. He served as a solicitor with the Nova Scotia Department of the Attorney General prior to co-founding the law firm of Cooper & McDonald in Halifax. He is currently a lawyer with the law firm of Boyne Clarke in Dartmouth, Nova Scotia and also acts as a per diem Crown Attorney. Mr. Cooper holds a B.A. from Saint Mary’s University and his B.Ed. and LL.B. from Dalhousie University. He is a former member of the Canadian Bar Association and the American Trial Lawyers’ Association.
Mr. Cooper served as an independent director of AuRico Gold Inc. from April 27, 2009 until October 26, 2011. During his tenure with AuRico Gold, Mr. Cooper served as Chairman of the Nominating & Corporate Governance Committee and as a member of the Audit Committee.
GoGold Resources Inc.
Suite 1301, 2000 Barrington Street
Halifax, Nova Scotia B3J 3K1
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