GoGold Resources is One of Most Undervalued Silver Companies

GoGold Resources is One of Most Undervalued Silver Companies

[Music] welcome back everyone to another company interview on The Daily gold podcast thank you so much for joining us today today is Wednesday May 22nd 2024 and with me today is is Brad LEL of go gold resources or go gold gold and silver uh Brad is the founder and CEO has a very long and distinguished track record in Mexico uh he’s looking for go gold to be his next success and it’s on a great path forward Brad first things first let’s talk about permitting in Mexico now we know that Los Rico South is going to start as an underground mine and there there is an option to uh make it mostly an underground mine with a small open piit component but investors really want to know what is going on in Mexico with respect to permitting and then secondly is there anything you could share as to when you might get that permit yes I mean that’s the question everybody’s asking Jordan obviously it’s been in the news a lot Mexico and and you know the aversion to open pit mining um and really our view on that well first of all that uh proposed law has been struck down uh that that’s uh very recent news now it doesn’t mean that with the new Administration in the after the election June 20 or June yeah June not 20 June 2nd that that might be back in the Slate but you know we have uh we always plann for any eventuality and you’re correct we have looked at um our deposit in Los Rico South and we’re in the process of doing a definitive feasibility study we anticipate to have that finished in August and be able to put a press release out on that but the way we’re M planning is that the or body can all be mined or almost all of it underground bulk mining right up to surface and then at the very end of the mine um plan there’d be a small open pit and we’d take out to Halo that exists around the very top of the deposit uh that would change the mine to a 14-year mine life the other thing it would change is we’d build a slightly smaller Mill from the start and a little more Capital but what we wouldn’t have is our Capital expansion of $70 million in year three to double the size in the mill when we’re planning a a bigger low grade open pit so we we made all the eventualities for that um we don’t have the work finished yet but I think it’s what we’re seeing so far yes a 9 to1 striber show open pit would be a bit better npv but not that big of a difference uh maybe 10 to 15% but we’ll have a much better internal rate of return because we would be deploying less Capital overall uh back to the question about permitting Mexico um again there’s an election on June 2nd we believe any outcome in that election will be better than the current situation and by that I mean if the same party Morena wins with Claudia shamam that we do believe and we’re not just just us thinking this we’ve talked to a lot of people even people in the marina party who said that she is very open she’s open to business uh she’ll be potentially a lot maybe better to deal with than the current Administration as far as our business and um so we look forward to a Claudia shamb bomb and or what even may be uh much better uh for the mining industry would be uh sohi garvez um she is the opposition candidate and uh she has clearly stated that she’s very Pro Mining and very Pro business now Claudia shamam has also stated that she’s Pro business as well but but uh sohi garvez is pro mining Pro business and some of the polls we’re looking at right now it have them neck and neck so June 2nd will be very very very important date and I’d say there the outcomes are going to be um sohi garvez wins literally the next day our feeling is all the Mexican companies in mining are going to benefit in uh you know get rid of that discount that we all have because of what’s been going on a Mexico discount if Claudia shamb bom wins we still think that’s a better outcome than the current Administration and uh she’ll take over power on the 1st of September now on our permit it’s an underground permit we’re well down the road and we hope we feel we think it’s reasonable that we expect to have a permit by the end of this summer so that’s that’s where we that’s our Outlook currently for the permit for underground um yeah it it’s interesting because if you look at I mean your stock as well as even companies that are seeking open pit permits uh th those stocks have been performing really well in the last month or so and obviously we know the markets you know we’re in a new bull market you know the metals prices are going up so that helps but I mean am I reading too much into the price action of these me Mexican stocks yours included I mean could we just be in a situation where all the risk in Mexico has been almost fully discounted up until the election I I think that um you know all of us who’ve been in Mexico for a while and I’ve been there going on into my 28th year building mines in Mexico all of us and you know the Nationals companies in the mining industry we all feel that you know um the election will bring better conditions for mining in Mexico um so I think a little bit of that is coming into the the market but obviously the commodity price is having a big influence on on the market right now I mean gold and silver are alive again and uh there’s an interest and you know um we’re seeing some benefit we’re Trading I believe and and we’ve done a little bit of work in this looking at some of the analysts who cover us we’re probably trading around a.3 times Nath and uh a development company you know with the equity we have and the potential to get the debt financing easily would probably be trading more around a0 6 times nav you know so so um you know we are there’s a discount that’s for sure and it’s because of all the noise in Mexico and I I would emphasize the word noise um I think the reality is not not nearly as bad as the noise that’s out there so uh underground permit is how we mitigate it for the time being we won’t need an open pit permit for a long time and um I I do personally believe that there will be open pit permits in Mexico you know companies like Eno Eagle they have a large open pit project in their San Nicholas that they’re looking that they trying to advance you know 60 some percent of the mining industry in Mexico is open pit you know it may become more difficult to get open pit but I don’t personally feel that open pits will be disallowed in Mexico so does the does the fact that metal prices are going up and we’re in a new bull market in my own words does that increase the chances that Mexico will be more lenient on permitting or does it does it not really have a impact well I I I think I think probably yes I mean it’s um you know that can be a big um economic impact um you know if you’re talking Claudia shambal and her um her kind of political or her um ideology is uh green transition is one of the things so we need copper we need silver for that green transition so that’s um and uh you know even in the lithium industry I don’t I don’t really believe there’s much lithium in Mexico but you know uh and the government is playing a big role in lithium now but that’s open pit you know in uh up in snor that would be open pit so uh yeah you need that those medals are the critical medals and um again just don’t rule out the fact that this election in our opinion the polls we follow may be a little closer than everybody thinks you know you look at the election just happened down in Panama and um in that election that was an upset you know uh that was not expected don’t don’t rule out you might see that happen in Mexico we’re following a few polls that are indicating that and they’re pretty large polls and they ones that have been they were correct in uh Panama they their view in Panama is correct and they have a um a different view in Mexico than a lot of the polls so but anyway Claudia shambal green transition she needs those Metals it’s a lot of economic impact to the country especially with like as you mentioned these Rising gold prices and silver prices um I I guess I don’t mean to I’m sorry to blabber the point but one more on permitting so is it so a new Administration comes in then are they are they more likely to give out permits earlier in their Administration or I mean if if if if if you know if the the Claudia got in and she was being a hard ass on mining for a little while um would that I mean would like right out of the gate would she want to be that way or I mean I I don’t know if the if I’m doing a good job of mentioning the question just because there’s so there’s so much risk leading up to the election you know where we’ve seen no permits recently and then I mean is there just like a breathing point where things can get moving again regardless of who gets in um I I think um the election is June 2nd the transition is September 1st typically in Mexico in the past I am told that all the tops of every Department change they change a new Administration comes in with the new president um there may be a period where the old Administration kind of clean up files you know uh in that gap between June 2nd and September 1st sometimes you know that happens but uh I I just think um back to the underground Minds nobody including the current Administration is saying that they have a problem with underground mindes so that’s that’s one point as far as go gold is concerned uh the law the current the law about outlawing open pit Minds has been struck down it didn’t pass in this Administration it did not pass the new Administration comes in September I don’t know if they’ll retable that law again or if they’ll go with something in my opinion much more sensible okay um if it’s CIA shambal I mean you know she is a well educated PhD us I believe it’s Berkeley where she’s educated she’s a very in ENT woman she has stated in q&as that she needs um foreign investment for the economy of Mexico it’s very important to her and the green transition is very important to her so I think on those two points she will be much more favorable to mining than the past administration and listen we’re suffering a big discount because of political rhetoric leading up to this election that’s going to settle down in my opinion uh and again I just throw in there a wild card soer garvez made it very very clear that she’s Pro mining so just on on June 3rd if you wake up and they say oh you know what happened to Panama happened to Mexico I think it’s a foregone conclusion that things are going to be pretty darn good yeah well I I hope for your sake and all our sakes that that happened so so Brad you don’t have to answer these questions which I’m sure you’re sick of getting at this point about permitting I I apologize that we had to uh you know ask two or three questions about that now let’s get to more interesting stuff so let’s presume I mean either sorry go ahead just if we put can and make it very very clear that I think you asked how long before things will get straight note for whoever wins we’re asking for an open pit permit the way we’re uh planning the mind right now we don’t need an open or I’m sorry underground open B for decade so just to make that clear okay go ahead sorry okay very good no no no worries thank you for that all right let’s talk about things that are more interesting okay so Los Los Rico South you know the underground it’s easier to permit we know that you’ll get the permit the end of summer you know maybe in the fall so after that at what point will you start construction or I mean how soon can you start construction after you get the permit and then what’s the timeline of the build yeah so um the timeline to timeline from the bill to production I should say sorry yes yes it’s it’s an 18month build um plus Rico sou and um as far as with a permit in hand we we’re we’re on schedule right right now to uh have a press release out on the feasibility studying in August we’re well Advanced with all our discussions with debt providers and of course we have a lot of equity I mean we theoretically even stop building before we ink the the final choice on what we choose for our debt provider um we could start earth works and things like that in my opinion of course we’ll make an official um uh construction decision and we’ll put that OD into our shareholders and press release but in my opinion I can’t see anything that will be stopping us from just once we have that permit in hand breaking ground and away we go you know we have the engineering done you know we have uh agreement with the uh the Lo uh local AO for surface rights to build we have power agreement with the power utility we have water with the localito we’re going to increase a little bit the size of their Dam that’s our water source so we have all the elements in place to just get going the number one thing is that permit just have permit in hand we go and I I know this is dependent on the feasibility study uh but you’re working on you’re towards the end stages of that it’s how many ounces a year could Los Rico South produce well you know what I’ll I’ll I’ll tell you the ounces a year that are in the PA I mean that’s published and they average put 8 million ounces a year and uh all in cost just over $9 and I I I believe with and a bit more ounces in the early years the uh the eagle is the biggest uh highest grade portion of the deposit um the mill size will be a little a little bit bigger uh it’ll be 2,000 tons a day instead of 1750 that’s in the paa so that’s a few more tons and they’re going to be highgrade tons going through the mill so um 8 million plus ounces and and with so with with peral that takes you then to about 10 million ounces a year yeah right yeah right around there yeah and so how how how many other companies are out are producing at least silver specific companies are producing 10 million ounces a year I I would I would believe that would be right around where a Silver Crest is and um a would be a bit less than that but I think they’re working their way up towards the 10 million so I think those are you know reasonable comps for us for Los Rico South I think that a Los rco South gets us pretty close to looking like a silver crust or an A and of course you know they’re benefiting from a much higher market cap than we are right now right okay let’s talk about Los Ricos North because this company isn’t just a one trick pony with the one project so Los Ricos North what is your plan there I mean is that kind of on hold right now um you you know it is it is a bit but um in Los Ricos North and you know I I mentioned that we have some great options for debt financing and you know with those options um you know myself and the team and our CFO you know we look at cost of capital but also what we’re considering there is flexibility as well because we think from a very high level the progression in the district should be you know get that permit engineering finish for Los Rico South build Los Rico south 18 months to get in production cash flow but at the same time if we’ve say circled in our our facility 10 million us or something like that and we have that money to do infield Drilling in the north to do Engineering in the north and get the north to a definitive feasibility study by the time we go into production Los Rico South and you know start working on permits and things like that then you know maybe Los Rico South will be only commence construction potentially it’s all potentially um you know a year after we’re in production in Los Rico South sorry I may have said Los Ricos North maybe a year after when we’re in production Los Rico South so wouldn’t that be great we have a district where we have a pipeline to get to production based on the two studies we have now of 15 to 17 million ounces a year and you know for comparables not in total reserves but that’s about you know comparable to a heckla in production and I think they’re all in cost around 12 bucks and in those two studies we’d be talking about alling costs under $10 so that would be great I mean you know um you know a company like a heckla in this Market’s enjoying you know a market cap of I think around four and a half billion Canadian so you know that’s a that’s a very that’s a very um good model to work to get to their level of production for increas in in in value of the company and um I think that should be the overall plan production Los Rico South ready to build Los Ricos North build Los Ricos North be one of the major players production wise in the silver space in high quality ounces you know under that $10 all in sustaining cost and then from there Jordan there’s exploration as well we never stopped exploring because we couldn’t find anything we stopped exploring because we drill 250,000 meters over 5 years every two weeks we’d have results from explor and our Market said to us tell us what it all means what’s the road map to becoming a producer and cash flowing and that’s what we did but there will be a time I believe you know where we’ll be back to districtwide exploration again when Los Rico South is or north is in construction production and I will just mention one thing very near-term expiration and then it would be back inless South because we know there’s another Horizon below what is planned today and what’s in our resources and what potentially will be reserves we know deeper down in Los Rico south from past history of past operator from 1927 to 1929 they had found another high-grade Horizon where we have in our archives a thousand samples they took and they were mining from there and they wanted to continue to mine from there but unfortunately there’s revolution in 1929 in Mexico and they left so we know that’s down there below what’s we’re planning as a mine today it would be 850 meters down little too deep for us to spend the money on drilling from surface when we know we’re going to be going underground and we save a lot of money so when we’re underground in Los Rico south building losico South we’ll probably Circle some money there for doing some expiration drilling on that additional Horizon that we know is down there and Define that and that’ll just be more high grade ounces going in that Mill in the future in that mine plan l r 7 so that’s the expiration that’s very near to infrastructure that’s high probability because we have a lot of samples from it from our Archive of past producer down there okay I want to I want to come back to the north but first we can I know we have a visual so let’s let’s see if we can uh pull up the visual of what you’re talking about with respect to the uh exploration potential at Los Rico South okay Brad so you are now sharing your screen where we could visually see what you were talking about with respect to the potential of Los Rico South right yeah this is Los Rico South you’re looking down from surface here now we’re going underground and this is the mine as we would have as we were developing it with all the stopes that will that will mine over these 14 years in Los Rico South producing those 8 plus million ounces a year at under $10 all in sustaining cost so now in the history of this the previous miners were there from 1908 to 1929 and they focused on this area up here and they had very high grade or and they had a very successful mine and this area here they did some mining there but it was lower grade and in 1927 to 1929 they got down to this area and just started mining there in 1927 1929 and they were seeing some of the highest grades in the mine now 850 meters down um so we’ve only drilled up here all up here and this is Eagle and we drilled that all about the same elevation about 1,50 m above sea level so this all drilled this is all part of our Resources with a definitive study will become reserves but this down here we haven’t drilled because it it would be about $200,000 a drill hole from surface to do that we’re going to wait until we’re underground which will be over the next couple years and then we’ll develop underground drill stations and we’re going to drill this out but we already have from archives from that Old producer a thousand samples down there that show extremely high grades and U they reported that they were high mining some of the highest grades in the in the history of their mine life and they left in 1929 because there’s a revolution in Mexico so we know this well we have these are high probability new resources and and we think that they may follow as they do in the horizon above were those just carried right over into the Eagle at those very high grades and this has very very good potential when we get down there to start drilling so that’s that’s the nearest infrastructure best you know probability that there could be something there because we have old samples we want to get to that that’ll be some exporation that’ll be more near term once we’re building this and we’ll have put some money aside to do that drill so that should be exciting because that’ll just be mean more and more highgrade tons going to that Mill that we’re going to build you know improve improving the value of Los Rico South but back to Los Ricos North I mean Los Ricos North again our plan again is to to get to um to to get to production to get definitive engineering done you know while we’re building Las Rico South to have a budget for that and to be up there um producing but also there’s a tremendous expiration potential up there like I mentioned we we didn’t stop because we weren’t finding we drilled for five years 250,000 meters we’re hitting every two weeks we’re putting out great drill results it’s just our Market wanted to know how we progressed this to a producer and a very significant producer of um silver and gold and that’s one thing I will mention as well we’re or gold gold silver and gold um what’s in the name you know gold Gold’s probably not the best name for a silver producer but it is what we had and was well known the name so um we’re about 60% silver by value um more than gold just one last thing on Los Rico’s North Brad um so permitting so that could be that can also be an underground operation good good point good point and that’s in our engineering as we’ve done in Rico South and we can you know we’re going to know a lot more about um the lay of the land as far as the feeling on open pit permits by the time we’re working up there and you know first thing we’re going to do is infill drill to tighten up the drilling up there and then we’ll be working on the engineering and we’ll have a better idea of what the climate is towards open pit but but it’s the same thing as the soth they the same structures they’re wide wide vein type structures with good grade that we feel can be bulk mind underground is the same as l r South so there’s a you know high probability we’ll we’ll plan A lot of it as a underground bulk mind and um you know with um with no open pitting or some smaller open pitting in the future okay Brad so wrapping things up so the election is obviously a driver then your feasibility study is coming for Los Rico South you know permit hopefully I mean somewhere around that time in the summer maybe end of the summer um anything else you want to add or mention that we didn’t cover today no I think I think just that we have a strong balance sheet where a lot of debt providers are wanting our business um and you can see from the market we’re a very very liquid stock uh performing well even with the overhang of um noise around the permit June 2nd for us I’ll I’ll sum it up and say one thing June 2nd for us is an important date no matter which party wins we do believe Claudia shamam will have uh more friendly mining Administration mining friendly Administration than the current Administration and if the opposition party wins they’ve already made it very clear that they’re very Pro mining in Pro business so we we’ll wait for June 2nd but whatever the oldc coming will be we see it as better situation than current okay great Brad thanks so much for your time I really appreciate it as my audience does as well very exciting story with I mean in my words huge potential over the coming months and years and hopefully we could do this again later in the year see how things are progressing you bet thanks thanks for your time D Jordan

Brad Langille, founder & CEO of GoGold Gold & Silver provides an update on the company’s permitting status to build a mine at Los Ricos South. He also outlines the plans for the Los Ricos North project and the strong exploration potential at depth at Los Ricos South.

0:00 Intro
1:20 Mexico Permitting Discussion
6:20 Is Risk in Mexico Fully Discounted
8:30 Does a Metals Bull Market Change Politics
11:05 Transition After Election in Summer
14:30 Los Ricos South Feasibility Study & Construction Period
17:00 Silver Companies Producing 10M oz Ag-eq/Yr
17:50 Plan at Los Ricos North
21:00 Exploration Potential at Los Ricos South
28:00 Brad Final Comments

Which junior mining stock is one of my biggest investments and has 20-bagger potential? Get your free report here:

https://thedailygold.com/

RESOURCES FOR YOU……
————————————————————————

★TheDailyGold University Series★
↪https://thedailygold.com/category/tdg-university/?order=asc

★ Learn about my premium service ★
↪https://thedailygold.com/premium

Follow Me on Twitter:
↪https://twitter.com/TheDailyGold

#Gold #Silver #How to Invest in Gold