Minera Durango Dorado S.A. De C.V. Enters into Option Agreement to Properties
Aug 16 12
GoGold Resources Inc. announced that it has completed an option agreement through its wholly owned subsidiary Minera Durango Dorado S.A. De C.V. (MDD), to acquire a 100% interest in a 2,000 hectare portion of the San Diego project known as Mina La Blanca. The area includes a past producing silver mine and has never been drilled. GoGold Resources Inc. has also purchased a 100% interest in two additional gold and silver mining concession from Mexican prospectors for total cash consideration of $90,000. These additional concessions further increase the San Diego Project land area to 71,495 hectares. Prior to agreeing concluding the option to acquire Mina La Blanca, GoGold Resources Inc. conducted preliminary sampling, mapping and recognizance work. Fifty-one grab samples were collected on surface and underground in numerous veins, workings and dumps within an approximate 500 square meter area and indications of several 2 - 8 meter wide high grade silver structures have been identified. This work returned grades as high as 0.82 grams gold per tonne (g/t) and 2,615.9 grams silver per tonne (g/t). GoGold Resources Inc. geologists believe this initial mapping and sampling has shown that the mineralization encountered may be related to an intrusive body mapped in the vicinity of the high grade veins. Under the terms of the option agreement for the Mina La Blanca area, GoGold will have an option to acquire a 100% interest in the property in exchange for the following: an initial payment of $150,000, a total of six additional $100,000 payments on September 1, 2012, October 1, 2012, November 1, 2012, February 1, 2013, May 1, 2013 and August 1, 2013; an NSR of 1% if the price of an ounce of gold is under $1,000, 1.5% if the price is between $1,000 -$1,500 and 2% if the price is over $1,500. The claims consist of two new concessions; the Real de Guadalupe which measures 453.5 hectares and La Ardilla which measures 53.5 hectares. The agreement to acquire the Real de Guadalupe concession provides that GoGold Resources pay a minimum advance royalty of $8,000 per annum starting in year three and ending in year eight. The total royalty is based on a payment of $4.00 per ounce of gold equivalent NI 43-101 compliant mineable reserves. Any minimum royalty payments will be applied against any final royalty payments due. MDD has agreed to pay the optionors of the claims an ongoing royalty of $4.00 per ounce of any future increase in reserves. The La Ardilla concession has no further commitment.