GoGold Resources (TSX: GGD) has cleared the last regulatory hurdle standing between its Los Ricos South project in Mexico and a shovel in the ground. The company said Mexico’s federal environmental authority, SEMARNAT, has granted all remaining permits and approvals needed to build the bulk-tonnage underground silver and gold mine in Jalisco State.
With permitting complete, the board has approved a construction decision and committed to building the mine. GoGold expects construction to run roughly 24 months from start to first pour.
The approval lands with the project already well into its execution phase. By early this year, GoGold had selected an underground mining contractor, advanced detailed plant design past the halfway mark, and moved to order long-lead equipment including a new grinding mill.
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The company had also locked in grid power through an agreement with Mexico’s federal electricity utility, drawing supply from the nearby La Yesca hydroelectric dam, and described the operation as shovel-ready ahead of the permit. A balance sheet carrying roughly US$250 million in cash, alongside cash flow from its producing Parral operation, has underpinned the build-out.
GoGold’s 2025 feasibility study laid out the economics now being put into motion. Under a base case of US$26.80 per ounce silver, US$2,330 per ounce gold and US$4.00 per pound copper, the study pegged the after-tax net present value at US$355 million using a 5% discount rate, with an after-tax internal rate of return of 28%.
Initial capital costs were estimated at US$227 million over a roughly two year build. The study modelled average operating cash costs of US$9.94 per ounce of silver equivalent and all in sustaining costs of US$11.19 per ounce over the first five years. Over that span, the mine is expected to produce an average of 7.3 million silver-equivalent ounces annually.
Total mine life is estimated at 15 years, with total life of mine production estimated at 80 million silver equivalent ounces.
GoGold Resources last traded at $3.03 on the TSX.
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