LOS RICOS
In March 2019, the Corporation acquired the Los Ricos property which is located in Jalisco state, Mexico. The property is comprised of 42 concessions, covers over 22,000 hectares, and is home to several historical mining operations. The property is located roughly 100 km northwest of the city of Gaudalajara and is easily accessible by paved road.
The property is split into two projects, the Los Ricos South project and the Los Ricos North project, which are approximately 25km apart. An initial 43-101 compliant mineral resource estimate on the Los Ricos South project was announced on July 29, 2020, and a Preliminary Economic Assessment ("PEA") was announced on January 20, 2021 which gave a base case NPV of $295 Million.
The Los Ricos South project was launched in March 2019 and includes the ‘Main’ area, which is focused on drilling around a number of historical mines including El Abra, El Troce, San Juan, and Rascadero. The Los Ricos South project also includes the Cerro Colorado, Las Lamas and East Vein targets.
The Los Ricos North project was launched in March 2020 and includes over 100 targets identified by GoGold's exploration team. A 100,000m drilling program for 2021 is underway, currently drilling at the El Favor, La Trini, Casados and El Orito targets.
MINERAL RESOURCE ESTIMATE - LOS RICOS SOUTH
See press release dated July 29, 2020 for details regarding Mineral Resource Estimate. The corresponding 43-101 compliant technical report is available for download on SEDAR and below.
Table 1: Los Ricos South Mineral Resource Estimate – Pit Constrained and Out-of-Pit(Note1-8)
| Mining Method | Category | Tonnes | Average Grade | Contained Metal | Contained Metal | Contained Metal | Contained Metal | Contained Metal | Contained Metal | Contained Metal |
|---|---|---|---|---|---|---|---|---|---|---|
| Au | Ag | AuEq | AgEq | Au | Ag | AuEq | AgEq | AgEq | AgEq | AgEq |
| (Mt) | (g/t) | (g/t) | (g/t) | (g/t) | (koz) | (koz) | (koz) | (koz) | (koz) | (koz) |
| Pit Constrained5 | Measured | 1.1 | 1.10 | 152 | 2.84 | 249 | 39 | 5,464 | 102 | 8,917 |
| Indicated | 8.7 | 0.89 | 113 | 2.18 | 191 | 247 | 31,681 | 610 | 53,330 | 53,330 |
| Measured & Indicated | 9.8 | 0.91 | 118 | 2.26 | 197 | 287 | 37,146 | 711 | 62,243 | 62,243 |
| Inferred | 2.3 | 0.75 | 73 | 1.58 | 138 | 56 | 5,421 | 118 | 10,296 | 10,296 |
| Out-of-Pit6,7 | Indicated | 0.2 | 1.23 | 185 | 3.35 | 293 | 6 | 907 | 16 | 1,434 |
| Inferred | 0.9 | 1.21 | 209 | 3.60 | 315 | 37 | 6,360 | 110 | 9,588 | 9,588 |
| Total | Measured | 1.1 | 1.10 | 152 | 2.84 | 249 | 39 | 5,464 | 102 | 8,917 |
| Indicated | 8.8 | 0.89 | 115 | 2.20 | 193 | 253 | 32,588 | 626 | 54,765 | 54,765 |
| Measured & Indicated | 10.0 | 0.91 | 119 | 2.27 | 199 | 293 | 38,053 | 728 | 63,677 | 63,677 |
| Inferred | 3.3 | 0.88 | 112 | 2.17 | 190 | 93 | 11,781 | 227 | 19,884 | 19,884 |
- Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
- The Mineral Resources in this news release were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
- Historically mined areas were depleted from the Mineral Resource model.
- The pit constrained AuEq cut-off grade of 0.43 g/t Au was derived from US$1,400/oz Au price, US$16/oz Ag price, 93% process recovery, US$18/tonne process and G&A cost. The constraining pit optimization parameters were $2.00/t mineralized mining cost, 1.50/t waste mining cost and 50-degree pit slopes.
- The out-of-pit AuEq cut-off grade of 1.4 g/t Au was derived from US$1,400/oz Au price, US$16/oz Ag price, 93% process recovery, $40/t mining cost, US$18/tonne process and G&A cost. The out-of-pit Mineral Resource grade blocks were quantified above the 1.4 g/t AuEq cut-off, below the constraining pit shell and within the constraining mineralized wireframes. Out–of-Pit Mineral Resources are restricted to the Los Ricos and Rascadero Veins, which exhibit historical continuity and reasonable potential for extraction by cut and fill and longhole mining methods.
- No out-of-pit Mineral Resources are categorized as Measured.
- AgEq and AuEq calculated at an Ag/Au ratio of 87.5:1.