GoGold Resources has signed an option agreement to acquire 29 concessions for Los Ricos, a large-scale exploration project located in Jalisco state, Mexico, following a long period of due diligence and negotiations.
GoGold said that the Los Ricos property, being optioned from private Mexican owners, is made up of 29 claims, and covers over 22,000 hectares, which has witnessed several historical mining operations.
The Los Ricos property is located approximately 100km northwest of the city of Gaudalajara and is easily accessible by paved road. The site has 65 historical drill holes, where the majority of them intercepted mineralization from near surface.
The company said that it has trenched around the property over the past three months and during the five-year period, it will have exclusive rights for exploration at the Property.
GoGold is drilling at the property to verify and add to the current internal resource on the property. The Los Ricos property is known to have strong geological potential, but the development of the asset had been delayed as a result of litigation.
All samples from the drilling programs will be analyzed by the IPL Laboratories in Vancouver, for gold and silver using the fire assay.
GoGold said that the QA/QC program also included inserting commercial reference control standard materials for gold and silver along with duplicate check sampling and the results of both the standards and the check samples came out with no significant discrepancies.
GoGold president and CEO Brad Langille said: “Our team has been following this asset for over eight years and began serious negotiations almost a year ago after the sale of Santa Gertrudis to Agnico Eagle Mines Limited for total proceeds of $95m. With this new agreement in place, we can continue exploring this project and test our belief that a large-scale high grade system exists.
“The Parral mine continues to improve and we are back in the exploration development business where we have excelled. As part of our due diligence process we have reviewed historical drilling and historical mining documents which will help us focus our exploration program on the halo that exists around the historical high grade ore shoots.”