GoGold Resources (TSX:GGD) GoGold Resources (TSX:GGD) Awaiting Final Permits And Green Light for $227M Silver Mine

03/05/25 • 22 min

Interview with Bradley Langille, President & CEO of GoGold Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/gogold-resources-tsxggd-los-ricos-projects-eyes-16moz-potential-in-evolving-mexican-mining-scene-6450

Recording date: 3rd March 2025

GoGold Resources is on the cusp of an exciting new chapter as it nears construction of a major new silver mine in Mexico. In a recent interview, CEO Brad Langille exuded confidence and optimism about the company's future, highlighting a number of key developments that should have investors taking notice.

GoGold expects to receive the final permit for its Los Ricos South project in the very near future. Mexico's new president has made permitting a priority, and Langille believes GoGold is at the top of the list. Once the permit is in hand, the company is ready to hit the ground running with construction of a brand new 2,000 ton per day underground silver mine.

Funding for the $227 million project is already well in hand. GoGold has a robust $76 million cash war chest and is seeing strong interest from lenders to provide an additional $150-175 million in debt. Langille hinted at a competitive process with financial partners vying to be part of this exciting project.

GoGold sees tantalizing exploration potential to extend the deposit a further 500m to the south. Early drill results have hit a wide structure that looks very similar to the high-grade core of the existing deposit. Confirming this could add years to the mine life. Add in the prospective Los Ricos North project, where GoGold has already outlined a 161 million ounce silver equivalent resource, and there's a clear pipeline for transformational production growth. The company envisions a path to 15-17 million ounces per year of silver output between its projects.

Perhaps most exciting is that GoGold's silver will be some of the lowest cost in the industry, with all-in sustaining costs pegged at just $12 per ounce. That ensures the company will gush cash flow even if silver prices retreat from their current perch near $25. With all these positive catalysts afoot, Langille mused about GoGold's attractiveness as a takeover target. The silver industry is rapidly consolidating, and recent deals have transacted at highly attractive valuations of 1.7-2.0x net asset value. As one of the few pure-play silver developers left, GoGold would be a crown jewel for a growth-hungry acquirer.

Langille and his team are laser-focused on delivering value for shareholders as a standalone company. With over $1.5 billion of mine construction and operating experience under their belt, this is a team that knows how to get it done.

For investors, it all adds up to a unique and compelling opportunity. Exposure to a fully-funded, high-margin silver mine on the cusp of construction, multiple avenues for exploration upside, and the tantalizing prospect of a lucrative takeover, GoGold has it all. A compelling story could turn brighter as the drills turn and silver continues its way higher.

View GoGold Resources' company profile: https://www.cruxinvestor.com/companies/gogold-resources

Interview with Bradley Langille, President & CEO of GoGold Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/gogold-resources-tsxggd-los-ricos-projects-eyes-16moz-potential-in-evolving-mexican-mining-scene-6450

Recording date: 3rd March 2025

View GoGold Resources' company profile: https://www.cruxinvestor.com/companies/gogold-resources

Previous Episode

Outcrop Silver (TSXV:OCG) - Why Eric Sprott Holds 19.9% Of This High-Grade Silver Opportunity

Interview with Ian Harris, CEO and President, Outcrop Silver

Our previous interview: https://www.cruxinvestor.com/posts/outcrop-silver-tsxvocg-leveraging-high-grade-silver-in-colombia-in-growing-global-demand-5930

Recording date: 3rd of March, 2025

Outcrop Silver is developing its flagship Santa Ana project in Colombia, positioned as one of the world's highest-grade primary silver projects. With 75% of its value derived from silver and exceptional recovery rates of 96-99% for both silver and gold, the project represents a rare opportunity for investors seeking pure silver exposure.

The company has secured significant backing from prominent silver investor Eric Sprott, who holds a 19.9% stake—the maximum allowable before triggering takeover provisions. According to CEO Ian Harris, this makes Outcrop among Sprott's top five investments last year despite the company's relatively small size.

For 2025, Outcrop has allocated an ambitious $12 million exploration budget to drill 24,000 meters using two drilling rigs. The company employs a systematic approach to target prioritization, analyzing factors such as grade, thickness, success rate, and strike length to calculate potential ounces and drilling costs. Their goal is to convert targets to resources at approximately 50 cents per ounce, well below their market valuation.

"The goal is to do it at around 50 cents... basically our cost to convert to resource, and our valuation is much higher than that number," Harris explained. "We are putting in a plan that securely will create more value for less money than we're spending."

Harris emphasized the advantages of being a true primary silver project, which creates greater leverage to silver prices. He noted silver's potential for explosive price movements compared to other metals: "If I said do you believe that it's possible that silver could double in price this year, the argument would be yes. Is there a possibility of copper going two times this year? No."

The company sees potential for industry consolidation among the small peer group of quality primary silver companies to improve capital access. Harris suggested combining companies with complementary attributes could be beneficial in the current capital-constrained environment.

Outcrop operates within a unique silver market characterized by structural supply-demand imbalances. Primary silver mines represent less than 25% of global production, with the majority coming as byproducts from base metal operations. Meanwhile, industrial demand continues growing, with solar panel manufacturing accounting for approximately 25% of consumption.

With Colombia's presidential election approaching in 14 months, the company is well-positioned to benefit from potential renewed interest in mining investment while advancing its high-grade project toward resource expansion.

Learn more: https://www.cruxinvestor.com/companies/outcrop-silver-gold

Next Episode

Magna Mining (TSXV:NICU) From Producer to Powerhouse: Magna Mining’s Bold Growth Plan

Interview with Jason Jessup, CEO of Magna Mining Inc.

Our previous interview: https://www.cruxinvestor.com/posts/magna-mining-tsxvnicu-magna-bets-on-coppers-future-with-acquisition-of-kghms-sudbury-portfolio-6411

Recording date: 3rd March 2025

Magna Mining is a rising star in the Canadian mining sector, poised to capitalize on the surging demand for critical metals like nickel and copper. With a portfolio of high-quality assets in the world-renowned Sudbury Basin, Magna offers investors a compelling opportunity to gain exposure to the electrification megatrend.

At the heart of Magna's story is the McCreedy West mine, a cornerstone asset already in production. With a history of mining since the late 1990s, McCreedy West boasts a substantial resource base of over 9 million tons. Magna is now ramping up operations, with plans to boost throughput to 400-500,000 tons per year. Even more exciting, Magna is targeting higher grades of 4-5% copper, a level rarely seen in global mining today. This combination of scale and grade is set to generate significant cashflows, giving Magna the firepower to fund aggressive growth.

But McCreedy West is just the beginning. Magna's crown jewel is the past-producing Levack mine, a high-grade monster that previously yielded head grades of 8-10%+ copper. Magna is now aggressively exploring the Levack deposit, with drills already turning to expand the resource. The potential is immense – with historic production of over 60 million tons, Levack could be a true company-maker for Magna. Management is targeting a rapid restart by 2026, which could propel Magna into the ranks of the mid-tier producers.

Magna has a pipeline of over five permitted projects in the Sudbury Basin, giving it incredible optionality and scale potential. From the advanced-stage Crean Hill project to the low-capex Shakespeare open pit, Magna controls a string of pearls in one of the world's most prolific mining camps. This creates the potential for Magna to evolve into a true district-scale producer over time, leveraging shared infrastructure and a centralized management team to drive industry-leading margins.

Critical to Magna's success is the strength of its leadership. CEO Jason Jessup is a mining veteran with a proven track record of value creation, having played a key role in building FNX Mining into a Sudbury heavyweight. He leads a technical team with decades of experience in the basin, giving Magna a true home field advantage. This deep knowledge base is complemented by a bold vision for growth and the proven ability to attract capital. Magna's recent $30m raise highlights the confidence the market has in the company's prospects.

With the tailwinds of electrification and decarbonization at its back, the company is perfectly positioned to ride the coming wave of demand for nickel and copper. As Jessup says, "This isn't about now we're a producer, we're done. This is about building into something that's significant." For investors looking to align themselves with that vision, Magna Mining presents a uniquely compelling opportunity. In a world hungry for critical metals, Magna is ready to deliver.

View Magna Mining's company profile: https://www.cruxinvestor.com/companies/magna-mining