Halifax, NS – GoGold Resources Inc. (TSX: GGD) (“GoGold”, “the Company”) announces the release of financial results for the quarter ending June 30, 2017. Revenue attributed to the Parral tailings project (“Parral”) was $4.65 million (of total revenue of $5.02 million) on the sale of 286,063 silver equivalent ounces at a cash cost of $9.61 per silver equivalent ounce (including Santa Gertrudis high-grade, total sales were 310,833 silver equivalent ounces at a cash cost of $16.20 per ounce) (all amounts are in U.S. dollars).
Financial highlights for the quarter ending June 30, 2017:
- Production growth of 13% at Parral over previous quarter
- Revenue of $5.02 million from the sale of 310,833 silver equivalent ounces, a realized price of $16.15 per silver equivalent ounce
- Parral cash cost per silver equivalent ounce of $9.61
- Parral demonstrated its fourth consecutive quarter of production growth
- Operating loss of $2.1 million, mainly due to slowed operation at Santa Gertrudis High Grade Material (“HGM”) project
GoGold produced 2,557 gold ounces and 151,442 silver ounces for a total of 339,730 silver equivalent ounces in the quarter ending June 30, 2017.
The Company’s Parral project contributed 2,237 gold and 151,422 silver ounces for a total of 314,910 silver equivalent ounces, which is a 13% increase over the 278,230 silver equivalent ounces produced in the previous quarter. Parral production increased for the fourth consecutive quarter and management has implemented changes to mitigate any potential effects of the rainy season for the upcoming quarter, including the construction of an additional overflow pond to aide in diverting heavy rains. The Company expects to see a continued increase in production at Parral.
The Santa Gertrudis HGM project produced 320 ounces of gold (24,820 silver equivalent ounces) which was a decrease over Q2 2017 due to increased stripping of lower grade material required to access the high-grade ore which could be economically trucked to the off-site process plant. This resulted in lower production and increased costs for the quarter. Mining at HGM has been put on hold pending completion of a mine plan and evaluation of next steps.