GoGold Announces Filing of PEA Technical Report for Los Ricos North

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HALIFAX, NS, June 30, 2023 /PRNewswire/ - GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the Company") is pleased to announce the filing of a National Instrument 43-101 Preliminary Economic Assessment ("PEA") Technical Report (the "Report") for their Los Ricos North Project located in Jalisco State, Mexico. The highlights of the Report were previously announced in a news release dated May 17, 2023, and the effective date of the Report is May 17, 2023.

This is the Company's second PEA completed within the Los Ricos District, in addition to the Los Ricos South PEA completed in January 2021, with an updated Mineral Resource Estimate ("MRE") and PEA for Los Ricos South expected to follow this summer.

Highlights of the PEA, with a base case silver price of US$23/oz and gold price of US$1,800/oz are as follows (all figures in US dollars unless otherwise stated):

• After-Tax NPV (using a discount rate of 5%) of $413 Million with an After-Tax IRR of 29% (Base Case);
• 13-year mine life producing a total of 110.3 Million payable silver equivalent ounces ("AgEq"), consisting of 68.0 Million silver ounces, 221,700 gold ounces, 22.8 Million pounds of copper, 144.1 Million pounds of lead and 242.2 Million pounds of zinc;
• Initial capital costs of $221 Million, including $29 Million in contingency costs, over an expected 18 month build, additional expansion capital of $137 Million, and sustaining capital costs of $6 Million over the life of mine ("LOM");
• Average LOM operating cash costs of $9.50/oz AgEq, and all in sustaining costs ("AISC") of $9.68/oz AgEq
• Average annual production of 8.8 Million AgEq oz in years one through twelve;
• Approximately 3/4 of LOM production is from four open pits containing oxide mineralization and approximately 1/4 is from a separate open pit which contains only sulphide mineralization.

"We're pleased to file our technical report for the Los Ricos North PEA which provides the details of the strong economics of the project – showing average annual production of 8.8 Million AgEq oz at a first quartile AISC of $9.68/oz AgEq. Los Ricos North forms a pipeline of growth after Los Ricos South, which we see as a high grade bulk underground mine targeted to be our first deposit advanced to production," said Brad Langille, President and CEO. "The filing of the Report represents one of the milestones for the 2023 year in the Los Ricos District. The other key milestones for the 2023 year in the Los Ricos District are an updated Mineral Resource and PEA in Los Ricos South incorporating the Eagle Zone, followed by a Pre-Feasibility Study in Los Ricos South which is anticipated before year's end. With US$100 Million in cash we are well positioned to develop Los Ricos South pending the results of the upcoming studies."

PEA Summary

The PEA was prepared by independent consultants P&E Mining Consultants Inc ("P&E"), with metallurgical test work completed by SGS Canada Inc.'s Lakefield office ("SGS"), process plant design and costing by D.E.N.M. Engineering Ltd., and environmental and permitting led by CIMA Mexico.

Table 1 below shows the key economic assumptions and results of the PEA, with Table 2 showing the physical attributes, Table 3 showing a sensitivity analysis based on varying metal prices and assumptions, and Table 4 showing a sensitivity analysis based on changes to operating and capital costs.

Table 1 – Los Ricos North PEA Key Economic Assumptions and Results

Table 2 – Los Ricos North PEA Summary of Physical Attributes

Table 3 – Los Ricos North PEA Metal Price Sensitivities

Table 4 – Los Ricos North Operating Expense and Capital Expense Sensitivities

Capital and Operating Costs

The Los Ricos North Project has been envisioned as an open pit mining operation, with contract mining comprising five open pits. The first four pits contain oxide mineralization and will be mined over years one to nine of the Project, with the final pit containing sulphide mineralization which will be mined in years 10 to 13.

The processing plant is comprised of conventional crushing, grinding, cyanide tank leaching, tailings filtration (dry stack), and Merrill Crowe precipitation for the oxide mineralization. For the sulphide mineralization, processing will be completed through a flotation circuit which is included in expansion capital and will be constructed in year eight of the Project.

Water supply to the process plant will be provided by a nearby surface water source and high voltage grid power will be provided by the local utility.

Key components of the capital cost estimate are provided in Table 5 and operating costs are provided in Table 6.

Table 5 – Capital Cost Estimate

Table 6 – Operating Costs (Average LOM)

Mining

The open pit mining will be contracted and carried out by drilling and blasting followed by conventional loading and truck haulage to the waste rock storage facilities and the process plant.

Metallurgy

A preliminary metallurgical test program was carried out by SGS Lakefield of Ontario, Canada on four Los Ricos North deposit areas – Favor, Trini, Casados, and Orito. Based on the zone geology, Favor, Trini, and Casados (oxide) were designated for whole mineralized material cyanidation testing. The Orito (sulphide) sample was deemed to be flotation ideal. The subsequent oxide testing included grinding (no comminution testing) and leaching only. The sulphide testing included grinding and bulk flotation to produce a single bulk concentrate with locked cycle (LCT) testing completed. The samples were comprised of four drill core rejects representing the noted zones of the Mineral Resource. This preliminary test program estimated a gold and silver oxide recovery of 87% for both. The sulphide recovery on the Orito sample recovered 76% gold, 88% silver, 89% copper, 89% zinc, and 75% lead.

Mineral Resource Estimate

The basis for the PEA is the Mineral Resource Estimate completed by P&E in the National Instrument 43-101 Technical Report on the Initial Mineral Resource Estimate for the Los Ricos North Project located in Jalisco State, Mexico, which has an effective date of December 1, 2021. A summary of the Mineral Resource Estimate is provided in Table 7.

Table 7: Los Ricos North Mineral Resource Estimate ^(1-11)