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‘Probably The Best Hole I’ve Ever Drilled’ Terry Coughlan Discusses GoGold’s San Diego Silver-Copper-Gold Project


December 3, 2012

gogold, gold, mexico

San Diego: Cashflow fueling exploration.

GoGold Resources Inc V.GGD announced November 26 assay results from the Chispa De Oro South target area at its San Diego Project in Durango State, Mexico.

Highlights include:

0.28 grams per tonne gold, 87 g/t silver, 1.1% copper over 194.3 metres
(including 0.35 g/t gold, 159.4 g/t silver, 1.6% copper over 82.3 metres)
0.08 g/t gold, 60.3 g/t silver, 1.9% copper over 38.7 metres
(including 0.16 g/t gold, 119.7 g/t silver, 4% copper over 12.2 metres)
0.03 g/t gold, 13.7 g/t silver, 2.2% copper over 6 metres
1.12 g/t gold, 208.1 g/t silver, 2% copper over 4.5 metres
0.12 g/t gold, 25.1 g/t silver, 0.3% copper over 49.5 metres
0.01 g/t gold, 16.2 g/t silver, 1.7% copper over 36.6 metres

President/CEO Terry Coughlan spoke to Kevin Michael Grace November 27.

RW: Let’s start with yesterday’s press release of yesterday. Some pretty impressive results.

TC: Yes, I know. That area is starting to shape up pretty well. [Hole GGS-056, with 100 g/t silver equivalent and 1.1% copper over 194.3 metres is] probably the best drillhole I’ve ever drilled in my career, and I’ve been involved in the industry for quite a while. We built [AuRico Gold’s T.AUQ] Ocampo mine in Mexico, and I don’t think we ever had a result like that.

RW: The San Diego Project is 71,000 hectares?

TC: Yes.

RW: How much of that have you explored?

TC: Oh, 10% of it.

RW: How prospective is the 90%?

TC: There are probably 20 or 25 targets within those 71,000 hectares. The reason we started with the three we’ve identified is they were the easiest, and we were getting good numbers. We could drive right up to the Breccia Hill Zone, and so we drilled about 12 or 13 holes and had excellent results.

But our main target is Chispa. It took about 1.5 years to map and sample it, and we had good results from one end to the other, which is about 3.5 kilometres long and 700 metres wide. We started at the north and worked our way south. And of course it was when we got to the south that we found this high-grade area. Our first surface sample was 40 metres of 5.81 grams silver equivalent, which we were obviously pretty excited about.

After we drilled the first few holes, we found copper there underneath the silver and gold horizon. We’re about 18 holes into that zone and system and still working out what the potential size might be. But we think we’re pretty close to actually starting a resource study on it, probably in January.

RW: What are your drilling plans for San Diego for the rest of the year?

TC: Probably another five or six holes. Next year, we’ll probably move the drills off the south area until this resource gets developed and modelled so that we can better define the orebody. Then move onto Las Europa, where we announced some real high-grade veins November 1. We had 2- to 10-metre-wide structures, and there is a cluster of eight of them that crisscross. Where you have these structures connecting to each other is usually where you get these higher-grade zones where you can develop ounces quickly.

We had some spectacular numbers in the first trenching go-round: 10 metres of 300-something grams and 5 or 6 metres of 400 and 500 grams silver.

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