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GoGold Reports Total Comprehensive Income of USD $42.9 Million

HALIFAX, Feb. 14, 2018 (Canada NewsWire via COMTEX) --

Trading Symbol: TSX: GGDShares Outstanding: 171,376,481

GoGold Resources Inc. (TSX: GGD) ("GoGold", "the Company") reports total comprehensive income of $42.9 million and net income of $30.0 million for the three months ended December 31, 2017. The Corporation structured the sale of Santa Gertrudis to utilize existing tax loss carryforwards and expects to pay no corporate income tax associated with the transaction. With the gross proceeds from the transaction of $80 million before a retained 2% net smelter royalty, the Corporation's net working capital position improved to $44.3 million from a deficiency at September 30, 2017 of $10.4 million. (All amounts are in U.S. dollars).

Parral generated revenue of $5.8 million on the sale of 366,374 silver equivalent ounces at an average realized price of $15.92. This marks the fifth consecutive quarter that revenue has increased at the Parral project. Cash costs in the current quarter were $11.69 per silver equivalent ounce, costs have increased due to the reprocessing of tailings which will be completed in the quarter ending March 31, 2018, after which costs are expected to decrease. During the quarter, the Company stacked 361,934 tonnes, which were all reprocessed tailings.

The Corporation closed the sale of Santa Gertrudis on November 2, 2017 to Agnico Eagle Mines Limited for cash consideration, net of transaction costs, of $76.8 million, which resulted in a pre-tax gain, after deducting the net carrying value of the Santa Gertrudis assets, of $54.3 million on the project which was initially acquired in 2014. The Corporation retained a 2% net smelter royalty on the Santa Gertrudis property, for which no value has been ascribed in the transaction.

"The Company now has a strong balance sheet with no debt, production growth with lowering costs, and is well positioned to strengthen and advance its business." said Brad Langille, CEO.

SART:Commissioning on the SART (sulfidization, acidification, recycling, and thickening) plant at Parral is proceeding as scheduled. The plant will reduce cyanide consumption and generate a saleable copper sulfide product, and is expected to contribute cost savings and copper production in the current quarter.

    Summarized Consolidated Financial
     Information                          Three months ended
                                              December 31
    ---                                       -----------

    (in thousands USD, except per share
     amounts)                                            2017 2016(1)
    -----------------------------------                  ----  ------

    Revenue                                            $5,832  $3,674
    -------                                            ------  ------

    Production costs, except amortization
     and depletion                                      4,284   1,937
    -------------------------------------               -----   -----

    Net loss from continuing operations               (1,663)  (932)
    -----------------------------------                ------    ----

    Net income                                         30,035     662
    ----------                                         ------     ---

    Total comprehensive income                         42,907     329
    --------------------------                         ------     ---

    Basic net earnings per share                         0.18    0.00
    ----------------------------                         ----    ----

    (1)Adjusted for discontinued
     operations associated with the
     sale of Santa Gertrudis.

    Key Performance Indicators(1)       Three months ended
                                           December 31
    ---                                    -----------

                                                       2017    2016
                                                       ----    ----

    Total tonnes stacked                            361,934 233,699
    --------------------                            ------- -------

    AISC per silver equivalent ounce(2)              $15.25   $9.06
    ----------------------------------               ------   -----

    Cash cost per silver ounce3,4                     $8.73 $(0.62)
    -----------------------------                     -----  ------

    Cash cost per silver equivalent
     ounce(2)                                        $11.69   $8.61
    -------------------------------                  ------   -----

    Realized silver price                            $15.92  $16.33
    ---------------------                            ------  ------

    (1)Key performance indicators
     are unaudited non-GAAP

    (2)Gold is converted using
     actual realized prices

    (3)Using Gold as a by-product

Late in 2017 the Company purchased a new stacker which has resulted in stacking rates for January improving by 23% over the last quarter to 4,843 per day in January. The stacking rates are expected to continue to improve throughout the remainder of 2018.

This news release should be read in conjunction with the condensed consolidated interim financial statements for the three months ended December 31, 2017, notes to the financial statements, and management's discussion and analysis for the three months ended December 31, 2017, which have been filed on SEDAR and are available on the Company's website.

Mr. Robert Harris, P.Eng. is the qualified person as defined by National Instrument 43-101 and is responsible for the technical information of this release.

About GoGold ResourcesGoGold Resources (TSX: GGD) is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico. The Company's Parral Tailings project produces silver and gold at a low cash cost. Headquartered in Halifax, NS, GoGold is building a portfolio of low cost, high margin projects. For more information visit

CAUTIONARY STATEMENT:The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to buy of any of GoGold's securities in the United States.

This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the Parral tailings project, future operating margins, future production and processing, and future plans and objectives of GoGold, constitute forward looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of GoGold and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates, and the performance of the Parral project. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.

Important factors that could cause actual results to differ materially from GoGold's expectations include exploration and development risks associated with GoGold's projects, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations of recovery rates, and global economic conditions. For additional information with respect to risk factors applicable to GoGold, reference should be made to GoGold's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, GoGold's Annual Information Form. The forward-looking information contained in this release is made as of the date of this release.

Cautionary non-IFRS Measures and Additional IFRS Measures The Company believes that investors use certain non-IFRS and additional IFRS measures as indicators to assess mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with IFRS. Non-IFRS and additional IFRS measures do not have a standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other companies.

Additional IFRS measures that are presented on the face of the Company's consolidated statements of comprehensive income include "Operating income (loss)". These measures are intended to provide an indication of the Company's mine and operating performance. "Cash flow from operating activities before changes in non-cash working capital" is a non-IFRS performance measure that could provide an indication of the Company's ability to generate cash flows from operations, and is calculated by adding back the change in non-cash working capital to "Net cash used in operating activities" as presented on the Company's consolidated statements of cash flows. Per ounce measures are calculated by dividing the relevant mining and processing costs and total costs by the ounces of metal sold in the period. "Cash costs per ounce" and "all-in sustaining costs per ounce" as used in this analysis are non-IFRS terms typically used by mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. These non-IFRS terms are also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of these metrics as determined by the Company compared with other mining companies. In this context, "cash costs per ounce" reflects the cash operating costs allocated from in-process and dore inventory associated with ounces of silver and gold sold in the period. "Cash costs per ounce" may vary from one period to another due to operating efficiencies, grade of material processed and silver/gold recovery rates in the period. "All-in sustaining costs per ounce" include total cash costs, exploration, corporate and administrative, share based compensation and sustaining capital costs. For a reconciliation of non-IFRS and IFRS measures, please refer to the Management Discussion and Analysis dated February 12, 2018, for the three months ended December 31, 2017, as presented on SEDAR.

SOURCE GoGold Resources Inc.

View original content:

SOURCE: GoGold Resources Inc.

Steve Low, Corporate Development, GoGold Resources, T: 416 855 0435, E:

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