Go Gold twinned two holes drilled by TUMI Resources in 2003-2004 at the exploration project it signed an option over last month, looking to test its belief a large-scale, high-grade system exists.
Its first hole intersected 35.5m from 71m averaging 1.24g/t gold and 284.7g/t silver, or 5.04g/t gold-equivalent, including 6.5m at 15.4g/t Au-eq.
The results were in line with its historic twin of 35m at 5.35g/t Au-eq from 70m. Both holes intersected a 1-1.5m void related to old workings.
GoGold's second hole struck higher grade mineralisation than its twin - 27.6m at 3.68g/t Au-eq from 26.5m, compared with the historic 28m at 2.04g/t Au-eq from 22m.
"Our initial two holes confirm the results from historical RC drilling programs are reliable as well as providing high quality geological, assay and geochemical information on the mineralised halo surrounding the historical high-grade ore shoots," president and CEO Brad Langille said.
The next phase of drilling will follow the ore shoot down dip below the historic RC drilling.
GoGold also reprocesses tailings at its Parral project in Chihuahua state, where it produced a record 288,693 ounces of silver and 1,613oz of gold in the March quarter, 30% higher than the previous period.
It reported net income of US$8.2 million for the December quarter after closing the sale of its 2% NSR over Santa Gertrudis, ending its links to the project it had sold to Agnico Eagle Mines and taking total proceeds to about $95 million.
GoGold shares rose 1.79% or half-a-cent yesterday to C28.5, towards the lower end of its 52-week range, capitalising it about $49 million.