11:48 AM EST, 01/16/2025 (MT Newswires) -- GoGold Resources ( GLGDF ) released Thursday the results of its feasibility study for the Los Ricos South project in Mexico.

The study outlined an after-tax net present value of US$355 million based on a 5% discount rate, with a 28% internal rate of return.

The project is expected to produce 80-million payable silver-equivalent ounces over a 15-year mine life, made up of 41-million silver ounces, 42,000 gold ounces, and 11-million pounds of copper.

Initial capital costs were estimated at US$227 million.

"The company has a strong balance sheet and we are in advanced discussions with prospective lenders for the remaining financing required for construction," said Brad Langille, GoGold's chief executive. "With this detailed study and once we have obtained the permit, we should be able to formally make a construction decision and begin building the mine."

GoGold said it expects to receive a positive outcome on its permit application for an underground mine by the end of March.

The company's shares were last seen down $0.04 to $1.37 on the Toronto Stock Exchange.

Price: 1.37, Change: -0.04, Percent Change: -2.84