GoGold Resources, a mining company, has announced a decrease in production at its Parral mine in Mexico. The decline in production started in September of last year and continued into the most recent quarter, which ended on June 30.
Production Decline
Parral mine has been in operation for ten years and is expected to remain active for another seven years. However, the silver-equivalent production for the quarter ending on June 30, 2023, dropped to 375,112 ounces compared to 509,769 ounces during the same period last year. Silver production also experienced a decline, decreasing to 203,894 ounces from 213,495 ounces. Additionally, gold output was halved during this period, with only 1,512 ounces produced compared to 3,081 ounces in the previous year.
Zinc Circuit Development
To enhance its operations, GoGold Resources is currently working on the development of a zinc circuit. This project is estimated to cost approximately C$2 million ($1.5 million) and is expected to be completed within six months. Importantly, the construction of the zinc circuit will not disrupt the current operations of the mine.
CEO and President Brad Langille explained that the addition of the zinc circuit aims to optimize the SART (sulphidation, acidification, recycling, and thickening) process. This optimization will allow for the production of an additional saleable metal, zinc, and the regeneration and recycling of more cyanide. By reducing the volume of fresh cyanide required for purchase, this advancement has significant cost-saving benefits.
Upon completion of the zinc circuit, GoGold Resources anticipates generating an additional C$1.5 million in cash flows per quarter.
