GoGold Resources (GGD.TO) has announced the newly acquired Promotora tailings contain approximately 12.6 million silver-equivalent ounces. After a 150+ hole drill program, GoGold’s consultant now estimates the tailings consist of almost 5.8 million tonnes at an average grade of 49 g/t silver and 0.26 g/t gold for 9.1 million ounces of silver and almost 50,000 ounces of gold.
As GoGold used a 50% recovery rate in its calculations, roughly half of these ounces could be recovered resulting in a rock value of approximately $18.19/t. As the total operating costs are expected to be just $10.14/t, it looks like the Promontoria project could add $30M in pre-tax cash flow taking the profit sharing agreement into consideration.
Adding more tailings surrounding the Parral tailings facility to the company’s portfolio could be a great move to increase the NPV by paying just cents on the dollar.
> Click here to go to GoGold’s website
Disclosure: The author holds no position in GoGold Resources. Please see our disclaimer for current positions.
