GoGold Plans to Secure Additional Tailings at Facility in Parral, Mexico

GoGold Resources Ltd. (TSX:GGD) announced that its Mexican subsidiary Grupo Coanzamex has signed a letter of intent to acquire the final processing rights to additional tailings material which would be processed at its heap leach facility in Parral, Mexico. The company expects to complete an options agreement with Promotora De La Industria Chihuahuense in March 2015.

As quoted in the press release:

For the last several months, the Company has been performing due diligence on a number of tailings piles in the vicinity of the Parral processing facility. On the Promotora tailings pile, the Company has drilled approximately 158 holes totaling 3,323 meters using a Boart Longyear Sonic Drill.  The first 144 holes were drilled on E-W trending sections that were spaced at 50 meter intervals from north to south.  Vertical holes were drilled at stations spaced at 25 meter along the sections.  The last 14 holes were angled holes drilled to test the side slopes of the tailings.

A summary of the terms of the Promotora Tailings Project Agreement, should the agreement be finalized, are as follows:

• Coanzamex agrees to pay a fee of USD$15,000 per month. The payments will continue until such time that Coanzamex decides whether or not to develop the Project;
• If Coanzamex decides not to develop the Promotora Tailings Project, then Coanzamex has no further obligation under the agreement and the payments are terminated;
• If Coanzamex decides to develop and operate the Promotora Tailings Project, the rental payments continue over the life of the Project and Promotora is also entitled to a net profits interest of 12% after the deduction of costs and capital depreciation;

Click here to read GoGold Resources Ltd. (TSX:GGD) press release