GoGold Resources (TSX: GGD) this morning announced the results of six drill holes conducted at its Los Ricos South project, with drilling taking place at three separate targets on the property. Further, the company subsequently announced that it will be conducted an accelerated warrant expiry on warrants issued just months ago at the end of February.
Highlights from the drilling conducted at Los Ricos consists of the second hole drilled at Rascadero, which yielded 16.7 metres of 368 g/t silver equivalent, which was made up of 1.32 g/t gold and 268 g/t silver. The intersect, made from 43.7 metres to 63.7 metres, includes 5.4 metres of 923 g/t silver equivalent. However, this was the only overly strong result from the latest drill results.
Drilling at Las Lamas however has at least warranted results that are interpreted as being promising, with one drill hole finding three sections of mineralization, the highlight here being 7.7 metres of 99.2 g/t silver equivalent. The three separate sections indicate that the surface structure has divided, which thus warrants further drilling to find potentially enriched areas of the overall structure.
Secondly, given the recent rise in the share price of GoGold, the company has elected to acceleration the expiry of warrants issued in February in connection with a bought deal financing. The acceleration was triggered after the company traded above a volume weighted average price of $1.20 for a period of ten consecutive days.
As a result, approximately 17.86 million warrants are expected to be exercised at a price of $0.85, bringing in an estimated US$11 million to company coffers.
GoGold Resources last traded at $1.34 on the TSX.
Information for this briefing was found via Sedar and GoGold Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.