Canada-based mining company GoGold Resources Inc. published the figures for the first quarter of fiscal year 2022. While there was a slight decline in revenue compared to the same period last year, the company’s projects are still quite young and, most importantly, Gold Resources is going its very own way to build its own mine.
GoGold operates as a silver and gold producer with two projects in Mexico. While gold and silver production is already taking place at Parral, the Los Ricos property is currently purely an exploration and development area.
The unusual way to own silver mine
The Canadian mining company specializes in project areas in Mexico and sees the core of its business in turning properties into profitable producing mines.
To achieve this goal, GoGold, on the one hand, follows the path of any exploration company and acquires a project area with the necessary concessions to profitably discover and develop resources.
However, to generate the necessary capital, GoGold Resources went its own way and is producing silver from the tailings in the Parral project area. The company uses the money generated in this way to build up its own silver mine in Los Ricos.
The Parral Project
Parral is located about 1300 kilometers northwest of the Mexican capital Mexico City. The Parral area was already known for its silver deposits from the 16th century. Therefore, numerous Spanish fortune seekers moved to Parral to find their fortune.
For more than 350 years, the silver miners dug holes and entire tunnels into the rock, creating huge spoil heaps in which plenty of silver remained.
In 2012, GoGold Resources acquired the rights to mine the forgotten silver from the tailings in the Parral region. At the start of mining, it was estimated that approximately 20 million tonnes of overburden contained about 38 grams of silver and 31 grams of gold per tonne.
GoGold Resources has now been mining the precious metals lying dormant there since 2012. On average, the company achieves around 2 million ounces of silver per year. Mining is carried out in a heap leaching process and in a modern processing plant. This provides GoGold with ongoing cash flow to finance other projects.
The Los Ricos Silver Project
After GoGold got silver production up and running at Parral, the company first bought the Santa Gertrudes project in northern Mexico. However, GoGold sold this to Canadian mining company Agnico Eagle for around US$100 million and eventually bought the Los Ricos Silver Project in 2019.
There, GoGold started exploration and expects to start silver mining in 2023 after good metallurgical results and promising drill results. Mining is initially estimated at around 6 million ounces per year, so the share price could multiply.