GoGold Updates On Parral Construction Progress

HALIFAX, NS - GoGold Resources Ltd. reposted an update on its Parral Tailings Project in Mexico. Construction is going extremely well with the heap leach facility approximately 60% complete. Pad preparation is progressing on schedule with liner installation well underway. Power lines are under construction and water wells are prepared and ready for mechanical installation. Approximately 50% of the steel works have been delivered to site and are being constructed. Overall the project is on schedule and on budget. The company expects to begin stacking ore in April with gold and silver production commencing in May 2014.

The Construction of the project continues to go very well and a number of optimizations have been identified from our final engineering and additional detailed test work as well as the final negotiation of operational contracts.

Costs are expected to be lower than what was in the original prefeasibility study as amongst other factors, there is currently an industry-wide surplus of available cyanide.  The additional technical work, as part of a more detailed mine schedule encompassed additional metallurgical testing completed by Kappes, Cassiday & Associates (KCA) as recommended by Golder Associates Ltd., the technical representatives for Orion Mine Finance and was required to initiate the second tranche of the financing. The additional columns showed similar recoveries as the original study but a reduction in the use of cyanide in the process was indicated and also noted was an increase in overall grade.