GoGold Advances Los Ricos South Construction
GoGold outlines funding, construction status and key milestones as Los Ricos South advances toward an expected first silver pour in Q2 2028.
Rhea-AI Summary
GoGold Resources (GLGDF) reported on-schedule construction progress at its Los Ricos South silver-gold project in Jalisco, Mexico, with first silver pour reiterated for Q2 2028.
The company has US$284 million in cash and states the project is fully funded with no debt or additional equity required, supported by cash flow from the Parral mine. Internal estimates, based on US$60/oz silver and US$4,200/oz gold, forecast peak cash outlay in Q3 2027 while maintaining at least US$130 million in cash during construction. GoGold has spent US$15 million to date, has over 150 contractors on site, all long-lead equipment ordered, plant design 90% complete, and an underground mining contractor (Cominvi) selected to mobilize in Q4 2026.
Positive
- Project fully funded with US$284 million cash and no debt
- Construction spend to date of US$15 million with schedule maintained
- Internal plan maintains minimum US$130 million cash through construction
- Over 150 contractors on site and all long-lead orders placed
- Plant design reported at 90% completion
- Internal model includes US$67.5 million warrant proceeds in November 2028
Negative
- First silver pour not expected until Q2 2028
- Funding model based on US$60/oz silver and US$4,200/oz gold
News Explained
The update adds that Los Ricos South construction remains on schedule, with earthworks and underground mine-plan optimization commenced in
AI-generated analysis. How Rhea-AI works. Not financial advice.
Halifax, Nova Scotia--(Newsfile Corp. - September 22, 2026) - GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the Company") is pleased to provide an update on construction at its Los Ricos South project in Jalisco, Mexico, following the commencement announced on August 25, 2026. The project is progressing on schedule, and the Company reiterates first silver pour in the second quarter of 2028.
"Construction at Los Ricos South is moving ahead at full steam. Site clearing is well advanced, with more than 150 contractors on site, and all long-lead equipment orders have been placed," said Brad Langille, President and CEO. "With US
Los Ricos South Construction Highlights
Active site works - Site clearing and earthworks advancing at the process plant site with more than 150 contractors on site.
All long-lead orders placed - All long-lead equipment orders have been placed, with procurement continuing on schedule. The long-lead orders include the SAG mill, tailings filter, crusher, electrical switchgear, Merrill-Crowe plant, conveyors, slurry pumps, hydrocyclones, feeders and screens.
Plant design - the design by M3 and DENM Engineering is at
90% completeUnderground mining contractor selected - Cominvi planned to mobilize to site in Q4 2026.
Schedule maintained - Construction and procurement remain on schedule, with first silver pour reiterated for Q2 2028.
To date, the Company has spent US
Los Ricos South Key Schedule Milestones
- Earthworks commenced - August 2026
- Underground mine plan optimization commenced - August 2026
- Start of powerline installation - November 2026
- Concrete foundation pouring - January 2027
- Portal development / ramp blasting - January 2027
- Paste plant construction begins - January 2027
- Hill-slope stabilization / mining - Main/Abra zone - March 2027
- SAG mill delivery to site - May 2027
- Plant commissioning begins - January 2028
Figure 1 - Los Ricos South Quarterly Capital Spend vs Cash Balance
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1683/315349_a0bd6de454a4cae7_001full.jpg
- Based on current internal estimates using
- Includes exercise of 27.5 million outstanding warrants in November 2028 at C
Picture 1 - Los Ricos South Current Status Compared to Detailed Engineering
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1683/315349_a0bd6de454a4cae7_002full.jpg
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 non-independent qualified person for the purposes of NI 43-101.
About GoGold Resources
GoGold Resources (TSX: GGD) is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico. The Company operates the Parral Tailings mine in the state of Chihuahua and has the Los Ricos South project, which is in development with a construction decision approved by the Board, and Los Ricos North exploration and development project, both in the state of Jalisco. Headquartered in Halifax, NS, GoGold is building a portfolio of low cost, high margin projects. For more information visit gogoldresources.com.
For further information please contact:
Steve Low
Corporate Development
GoGold Resources
T: 416 855 0435
E: steve@gogoldresources.com
CAUTIONARY STATEMENT:
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to buy of any of GoGold's securities in the United States.
This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the Parral tailings mine, the Los Ricos projects, future operating margins, future production and processing, construction timelines and future plans and objectives of GoGold, constitute forward looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of GoGold and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates, and the performance of the Parral tailings mine. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
Important factors that could cause actual results to differ materially from GoGold's expectations include exploration and development risks associated with the GoGold's projects, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations of recovery rates, and global economic conditions. For additional information with respect to risk factors applicable to GoGold, reference should be made to GoGold's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, GoGold's Annual Information Form. The forward-looking information contained in this release is made as of the date of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/315349
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What are the key upcoming construction and development milestones at Los Ricos South?
Key milestones include earthworks and underground mine plan optimization that commenced in August 2026, start of powerline installation in November 2026, concrete foundation pouring, portal development and ramp blasting, and start of paste plant construction in January 2027. Hill-slope stabilization and mining at the Main/Abra zone are scheduled for March 2027, SAG mill delivery to site in May 2027, and plant commissioning is planned to begin in January 2028.
What major equipment and infrastructure orders have been placed for the project?
All long-lead equipment orders have been placed, including the SAG mill, tailings filter, crusher, electrical switchgear, Merrill-Crowe plant, conveyors, slurry pumps, hydrocyclones, feeders and screens. Procurement is reported to be continuing on schedule.
Who is the underground mining contractor and when will they mobilize?
Cominvi has been selected as the underground mining contractor for Los Ricos South, with mobilization to site planned for the fourth quarter of 2026.
How many workers are currently active on the Los Ricos South site?
Site clearing and earthworks at the process plant area are underway with more than 150 contractors currently working on site.
What financial assumptions are used in GoGold’s internal estimates for project funding?
The internal estimates use metal prices of US$60 per ounce of silver and US$4,200 per ounce of gold, and include the exercise of 27.5 million outstanding warrants in November 2028 at C$3.50 per warrant, which is stated to provide approximately US$67.5 million in net proceeds.
Who reviewed and approved the technical information in this update?
The technical information relating to GoGold in this update was reviewed and approved by Mr. Bob Harris, P.Eng., who is identified as a non-independent qualified person for the purposes of NI 43-101.