Please disable any adblockers if the video is not showing below.

GoGold Resources

View Company Profile

September 17, 2024 at 9:50 AM (MDT)|Broadmoor Hotel & Resort

Brad Langille

President & CEO, Director

Mr. Langille was the co-founder of both Gammon Gold Inc. and Mexgold Resources Inc. and served as a Director and Chief Executive Officer of both companies. Mr. Langille successfully developed both company's projects from grass roots to commercial production in Mexico, raising in excess of $500 million for the development and construction of both mines. Mr. Langille was an integral part of the growth and success of Gammon Gold Inc., and Mexgold Resources Inc.. Mr. Langille directed the growth and development of the Ocampo mine and the El Cubo mine from 1999 through 2007. Mr. Langille was Strategic Advisor for Nayarit Gold Inc. from 2007 to 2010 and with his guidance developed the Orion Project from initial stages through scoping study and was instrumental in the company being acquired by Capital Gold in 2010.

This is an automatically generated transcript. Denver Gold Group cannot accept responsibility for mistakes, errors, omissions, or any action taken in reliance thereon. Use of this transcript is governed by Denver Gold Group’s Terms of Use.

Update on Gogol's Mexican assets, right? Oh, great. And good morning and thank you for your interest in Go go this morning. Well, at Gold, gold is, I think a lot of people know we've been a very, very Mexican focused team. I've been there for the last 28 years. We built three mines and major refurbished, 1/4 where we went in and doubled the production on a old underground mine. The company is very well capitalized,, as you can see, 329 million shares. We're very fortunate. We have 76 million us cash in the bank. And we have a large Mexican va T tax receivable of 22 million us as well. And we're just in the process of probably getting about another 8 million of that. Good thing about they're a little slow paying, but I will tell you they pay very, very good interest, they're paying us about a percent a month. So, last year, we got paid $5 million of principal. And by the time we got the money in our bank account, it was $11 million. So that's more funding for the company along with our operation at Peral is generating cash. And I'll get into that in a moment later in the presentation. But Gogol and all the companies we've done in Mexico over the years, our model has been dealing with a lot of the private families, private individuals. We've been able to find assets that are kind of off the radar. A lot of people we get, we get to see them kind of first and see the opportunity in gold, gold. One of those back in 2014 was Santa Gratuitous, which we bought for $9 million spent 11. And then we sold it to Nico for $95 million.03 years later. And pal that's our mining reprocessing of old tailings operation and we've been operating there now for 10 years with another 4.5 years of reserves left. And of course Los Ricos, Los Ricos is really the driver of the company. That's our development asset and we hope to be building a mine in the first half next year in 2025 at Los Ricos. Now Los Ricos is very well located. It's a drive in no camp required great infrastructure. As you can see in the picture there, there's a hydro dam that's where we'll be getting our power from. And just for scale that would be about 25 miles and everything in the red is ours less. We goes south. L goes north. We entered into this project in 2019, March, 2019, we bought it from private individuals for $7.5 million. But beyond 200,000 m of drilling and three economic studies that we've done over the last five years. The other focus was consolidation. We started off with about 25 concessions. We're now at about 46. So we've done a good job in consolidating the ground in Los Ricos as well. And in resources, Las Rico South, we have about 100 and 10 million ounces of silver equivalent in all categories that's including the inferred, which would be around 11 12%. Now we did complete a pe a last year or yes last year. And in that pe a we envisioned a underground and an open pit with an initial Capex of around 100 and 48 million and then an expansion Capex in year three when we would double the size of the mill, which started at 1750 then we increased it to 4000 tons a day and we started stripping on an open pit. Now, I will say that I think everybody's pretty aware of all the noise in Mexico right now around open pits and the difficulty in getting those permitted. So we're in the very final stages of a definitive feasibility. And, and just what does that mean? Just to remind people, a pe A is plus or minus 50% and, a pref feasibility plus or minus 25 and ad fs is plus or minus 10%. So this study, it's very well costed on capital and opex, we would have plus 75% of Capex and contracts for mining all cost it. And our pe a was well done as well because it was getting close to the level of pref feasibility. We were just missing the underground geotechnical work which of course, we now have finished to a pref feasibility level or sorry, defended feasibility level. But we have made some pretty major changes in the defendant feasibility. And we're fortunate that we have the optionality to mine this as an underground mine. So that's, that's what we've, we've done along with our engineering consultants as you see on the screen there, we've we've designed this to be 12 years of underground mining and it's, it's bulk underground mining, long haul mining, very productive as far as tons and very economic as far as cost per ton. So those are just some of the consultants leading the study P and E engineering and Asen on the processing to name a few. Now on the processing, we've increased in the the defended feasibility, the size of the mill from what was initially planned at 1750. Now, it would be 2000 tons a day. And the good thing is it's conventional whole or leaching process. There's nothing very complex here in metallurgy or the processing circuit. It's s a mill for grinding, agitated Lee C CD. And the only thing at the back end of the mill, two things. One is we'll use Sart technology because there is a little bit of copper and mostly in the first four years of the mine life. And it's about we will produce a copper precipitate which we'll sell. But also we regenerate cyanide in the Sart process. And that's really what it's aimed at to reduce process cost by reget generating cyanide. Now, we are very familiar with the Sart process. We operated at our operating mine in Bal. We've been operating Sart for about five years and it works extremely well. The other thing that is not that different today is that it's dry, stacked tails at the back end of the mill. So it's filtering detoxification and, and really in that filtering, it's a boat use of water, which is another thing that rightfully so is a focus of the environmental authority in Mexico that we regenerate as much water as we can. And and of course, it's been a lot of news a lot of noise in the media and you know, boat tailings and there's been some pretty prominent tailing fail failures. So this is dry stacked. So this is the best practices. And also those dry stack tails in this study, we mix them with cement, we pump them back into the mine. And as as pace backfill, the complete mine will be all paced back fill. It adds to stability of the mine. And also it reduces your footprint on surface by getting rid of those tailings and putting them underground again. So two things in mining that are really important when you're gonna build a mine, water and power. Well, on the power side, we've opted to lock that down. There's a hydro dam 36 kilometers away, the power was available. We need 14 megawatts of power and we signed a contract and the complete project will cost $7.5 million. So we've started on that by putting down $2 million and securing the availability of that power. It's ours for the life of the mine. So good green power, which is good. Also on this project, we're able to use the existing right aways. And of course, that's good. We don't have to do any negotiations for land as we're building this. I'll just touch on the other thing I mentioned two things, obviously, water, water is very important and we're very fortunate because the landowners in Las Rico South also own two dams that contain water for agricultural use. So our plan and it's all been engineered and cost it now is in particular, one of those dams, We're raising the earthen dam by 3 m and that'll give us the availability of having another about 450,000 cubic meters of water a year. And that's all the water we need. We'll buy it on a long term contract from the local community, which again is very good. As far as ESG we're putting more money in the hands of the community. And so doing that work, plus the pipeline to bring it up to the site is cost $4.5 million and it's totally engineered now. So I mentioned about mining again, it's a bulk underground mining, sublevel long haul ramp access in haulage, cemented backfields. The, the mine is a dry mine. We've done all the hydrological studies and a very dry mine contract mining. Now, the approach we're gonna take, you know, gold, gold is an operator. And in my career, I've done a lot more underground mining but for gold, gold to transition to a 2000 ton a day underground mine, we think the best approach is contract mining. We've gone outing and competitively had that quoted in, in very detailed quotes and, you know, we have two, main contractors in,, who we think it'll boil down to in the end of the day, one of those two will be able to get the job done. So, always a question we found in underground mining is, you know, development, everybody uses contractors pretty much., and then it's a question of in dope mining. Well, here the sts are nice and wide at,, average of 11 m. It's all long hole bulk mining. And our approach is gonna be focusing on our mine services team. So what we'll do is have a real strong mine services team that will be, of course, underground survey, geology and short term mine planning and really managing the contract. So we see it that if we're, we have a strong mine services team and basically we're laying out, we want you to blast here this many holes, this much explosive. We're auditing all of that then,, if, if they over break, we would have over broke. So it, it'll really be a partnership with the mine contractor. So we think we can meet that challenge of 2000 tons a day, with, with minimum hurdles, doing it this way. So just to talk about the underground mine for a moment and, there's the resources, everything in., well, the yellow is 200 sorry, 240 to 400. The red 400 to 700 g. and the magenta 700 to 1000 and there is some dark blue in there at over a kilo. So these are big wide scopes that's with 28% dilution built in so very good grades. And or there until the end of 2039 in underground prede development in 2025 26. Now we'll be de producing some development muck there as we're developing in the structures. 2027 we will hit 2000 tons a day and 2028 will be in full production, commercial production at 2000 tons a day. That's the, that's the plan. So this is colored by years just flipping through it. And then in 2039 we exhaust the underground reserves and I'll make a point there. We exhaust what we have in underground reserves today. But really, we think we know where to go next. We've had an application in for a year and a half for this underground mine. Our best estimate today is we hope to have the underground permit by the end of the first quarter, 2025. And really when we look at this, we say, OK, there's up to 2039 where's the brownfields, resources or brownfield exploration potential? It's right in front of us. If you look at this, you'll, you'll see the reserves all in color by year. They go down to about 300 m from surface. And then we have a lot of history here from the previous operator, which was the daily family who had a company, Anaconda, a very famous company here in the US. So they operated this mine very professionally and it was 2008 until 2029. Now, I'm sorry, not 2019 08 to 1929. But in 1927 they found another horizon down about 200 m below where our reserves are. And really with some great grades, we have very limited information from their old mining down there, but we do have monthly reports that are quite excited about it. They had 17 m at 1.5 kg and 12 m, another little over 1.5 kg and really the same kind of thing we're seeing up here in the high grade reserves. So we're pretty sure it's down there and you can imagine what impact that would have on this mine if we can find another high grade ore body, just 200 m below our ultimate development. And we think as we're waiting for that permit for about $3 million we could get the 1st 25 holes down there. There'll be 7 800 m holes and we're gonna start those and we'll be reporting on those through the end of the year and into the first quarter. But,, you know, I think it's a high probability we hit some good results down there. And again, that is something that could really impact future N PV here. Now, that's, that's Las Rico South. We're on a trajectory here to, hopefully break ground first quarter, second quarter of 2025., we have the equity portion of what we need. We have term sheets as far as the debt portion and we're getting that underway. But what about Los Ricos North? I mean, in the north we have a pe A in the north with over 400 million N PV. It's an early stage pe A and it's, it's focused on open pit. Now, that being said at the time we did this early stage, pe A, we knew that open pits would probably give us a better N PV. There's 100 and 61 million ounces up in the North in resources. Our geological team has moved to the north. They're re logging the 100,000 m of core we have in the north really with a focus in 2025 of completing an underground drill plan or drill program. And or I'm I'm sorry, underground mine plan for a pe A in Los Ricos North, which will demonstrate that the ore body can be mined underground. Now, that's all the block models in open pits. But if we look at the grade distribution. And this isn't quite comparing apples to apples on the the resource model that we're using for the open pit. But if we do apply a sensitivity of 100 and 50 g, which would be a little more than our cut off grade in the underground mine plan in Las Rico South. We see that the ore body holds together quite, quite nicely. So everything in yellow, there would be between 100 and 5300 g and tan 305 100 the red is 500 1000. So this is the biggest ore body in the North Alpha or and if you look at that, that's over about 1.6 kilometers. I mean, in a lot of ways, it looks very similar to ore body in the South. And if you look at one section in the western part of Alpha or, and it all needs a lot more drilling and that will be coming. But you can see that yes, beautiful open pit ore body with a width of 8080 plus meters. But also here in this section, you'll see 36 m of 550 g and topography. We believe we kind of work with the that future underground mine plan in that it can probably you can access a lot of the development o of the valley. There's some pretty steep topography. Going into the valley and we can drive, drive at its to access it. So our overall plan is Las Rico South DFS completed end of the first quarter yet underway. Building it very well planned in the DFS. We'll have the detailed engineering finished by the end of the year as well. But where we really want to be and we want flexibility in our credit facility is that we can have a budget for about $15 million for Los Ricos North. And as Las Rico South is hitting commercial production and everybody's saying, what's next for gold, gold, we'll point to the north and we'll say there it is. We have a DFS in the north, an underground mine plan and we'll be on our way to building Los Ricos North.


NOTICE

The Denver Gold Group does not make any express or implied condition, representation, warranty or other term as to the accuracy, validity, reliability, timeliness or completeness of any information or materials in general or in connection with any particular use or purpose presented at the Gold Forum. Denver Gold Group cannot accept responsibility for sourcing variances, mistakes, errors or omissions or for any action taken in reliance thereon. Use of this data is governed by Denver Gold Group's Terms of Use.

The Denver Gold Group does not represent or endorse the accuracy or reliability of any third party advice, opinion, statement, information or materials received during the Gold Forum.

INVESTMENT ADVICE - NO OFFER OR RECOMMENDATION

The Gold Forum and the information and materials presented at the Gold Forum do not, and shall not be construed as, making any recommendation or providing any investment or other advice with respect to the purchase, sale or other disposition of any regulated gold related products or any other regulated products, securities or investments, including, without limitation, any advice to the effect that any gold related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor. A decision to invest in any regulated gold related products or any other regulated products, securities or investments should not be made in reliance on any of the information or materials presented or obtained during the Gold Forum. Before making any investment decision, prospective investors should seek advice from their financial, legal, tax and accounting advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.