Joe Gold Resources Company (JJD-TSX) said that the Mexican Federal Environmental Administration (SEMARNAT) has granted all permits and approvals required by SEMARNAT for the construction of a large-tonnage underground mine in South Los Ricos.
GoGold shares advanced on the news, rising 11.2%, or 34 cents, to $3.37 in early trading Monday. Shares are trading in a 52-week range of $4.12 to $1.96.
The company said that its board of directors gave the green light to begin construction work. The first gold pour is expected about 24 months after construction begins.
GoGold is a silver and gold producer with a focus on Mexico. It operates the Parral Tailings mine in Chihuahua state, and the Los Ricos South and Los Ricos North exploration projects in Jalisco state.
Los Ricos consists of 29 concessions and covers more than 22,000 hectares. The property is home to several historic mining operations and is located about 100 kilometers northwest of Guadalajara.
South Los Ricos includes the “main” zone focused on drilling around a number of historic mines, including Abra, Truss, San Juan and Rascadero.
In a press release issued on February 28, 2025, GoGold announced the submission of an NI 43-101 compliant feasibility study technical report for the Los Ricos South area. She said that the feasibility study includes re-engineering an underground mine with a capacity of 2,000 tons per day.
The feasibility study envisions a 15-year mine plan producing a total of 80 million ounces of silver equivalent (AgEq), consisting of 41 million ounces of silver, 424,000 ounces of gold and 11 million pounds of copper.
The initial capital cost is also expected to be $227 million, including $21 million in contingency costs, over the expected two years of construction, and sustained capital costs of $100 million over the life of the mine.
“We are extremely grateful and committed to Mexico and the people of Jalisco for their partnership and trust as we move forward with this project, and we remain fully committed to creating long-term value for the country and its communities,” said Brad Langille, President and CEO of GoGold.
He said the project was designed with strict environmental protection and sustainability practices at its core.
The company recently raised $144 million in a large buyout offering and said it would put the proceeds into exploration and development at Los Ricos. The supply consists of 54.24 million units at a price of $2.65 per unit. The amount raised included the full exercise of the 15% over-allotment option which enabled the underwriters to purchase an additional 7.07 million units.
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