GoGold’s $227M Los Ricos South mine: capex, returns and schedule for mine planners
Reviewed by Joe Ashwell
First reported on MINING.com
30 Second Briefing
GoGold Resources has secured SEMARNAT approval to build the $227 million Los Ricos South bulk-tonnage underground gold-silver mine in Jalisco, with a 24‑month construction schedule and full funding from its C$261 million cash balance. The 15‑year operation is designed to produce 80 million oz silver-equivalent, averaging 7.3 million oz per year in the first five years, and carries a 2025 feasibility study after-tax NPV (5%) of $355 million and 28% IRR at $26.80/oz silver and $2,330/oz gold. Los Ricos South will join the Parral agglomerated heap leach tailings project and precedes potential development of the nearby Los Ricos North deposit.
Technical Brief
- Initial capex of $227 million is complemented by a further $100 million sustaining capital requirement.
- SEMARNAT approval covers all federal environmental permits needed for bulk-tonnage underground development at Los Ricos South.
- Los Ricos property comprises 45 mining concessions over more than 240 km² in Jalisco.
- Los Ricos North, 25 km from Los Ricos South, is currently defined only to PEA level.
- Parral’s agglomerated heap leach in Chihuahua processes historic tailings for silver, gold and copper recovery.
- Parral produced 394,605 oz silver-equivalent in the latest quarter, generating an additional $16 million cash.
- GoGold’s cash balance of C$261 million underpins full equity funding of the Los Ricos South build.
- Market reaction to permit approval saw GoGold’s share price rise over 10% to C$3.73, capitalising it at C$1.52 billion.
Our Take
SEMARNAT’s sign-off at Los Ricos South echoes its approval of Orla Mining’s Camino Rojo in Zacatecas, signalling that well-structured gold–silver open-pit projects in Mexico are still moving through federal permitting despite a tougher discourse on new mines.
The 15-year life and 80 Moz silver-equivalent profile at Los Ricos South, combined with the nearby Los Ricos North area, suggests GoGold is effectively building a district-scale gold–silver camp in Jalisco rather than a single-asset operation, which can materially change how larger producers view it as a future takeover or JV candidate.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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