Drilling at Rambler, Newfoundland confirms gold mineralization

HALIFAX, May 15, 2012 /CNW/ – Terry Coughlan, President and CEO of GoGold Resources Inc., (“GoGold”) (TSXV: GGD) is pleased to announce results from drilling at the Main Mine deposit at GoGold’s Rambler property in Newfoundland Canada. GoGold targeted the down dip extension of this previously mined massive sulphide deposit. Four of the five holes drilled successfully hit the gold zone extending it approximately 450 metres beyond the old workings indicating the potential for an underground bulk tonnage target.

The Main Mine deposit is one of several VMS-style deposits that occur along asymmetrically folded structurally controlled stratigraphic horizon as northeast plunging ore chutes at the former Consolidated Rambler Camp. The Main Mine occurs immediately south of Rambler Metals and Mining PLC Ming deposit which is currently under development to go into production.

Table 1: Significant gold assay values from the drilling completed

The drill intervals reported above are core intercepts only and the 2011 holes were exploratory. As such orientations were surveyed using a Pijari instrument and acid test. As a result true widths are estimates based on an approximate dip in the mineralized horizon of 30⁰ and its intersection by a vertical hole, at 86 % of apparent widths reported above. The weighted average grades reported were calculated using a 1.0 g/t Au cut off down to minimum width of 3 meters.

GoGold’s diamond drilling program in 2011 successfully targeted IP Anomalies along the periphery of the Main Mine deposit extending mineralization 450 metres down plunge beyond existing mine workings. Significant widths of low grade mineralization were intercepted in four of five holes targeting IP Anomalies along the periphery of the deposit, including:

DDH-11-01: 310 metres to 415.1 metres = 104.6 metres of Main Mine target zone
DDH-11-02: 325.9 metres to 453.6 metres = 127.76 metres of Main Mine target zone
DDH-11-04: 358.7 metres to 490.2 = 102.5 metres of Main Mine target zone
DDH-11-05: 498.7 metres to 542.3 = 43.6 metres of Main Mine target zone

DDH-11-001 was collared as a vertical hole completed to a depth of 441.0 m between two IP targets along the estimated centerline of the extension of the deposit. DDH-11-002 collared as a vertical hole to test an IP anomaly along a road approximately 100 m north of DHH-11-001. It failed to intersect mineralization related to the IP anomaly at a target depth of 110 m but was later re-entered and completed to a depth of 477.6 m to test for the presence of the mineralization intersected in DDH-11-001. DDH-11-003 was collared at a dip of -75⁰ toward an azimuth of 40⁰ and completed to a depth of 340.2 m test a remote IP anomaly at a target depth of 300 to 350 m and local surface alteration and mineralization. It intersected 35.5 m of mineralization that returned negligible gold values. DDH-11-004 collared as a vertical hole and completed to a depth of 502.2 m to test an IP target on the south side of the deposit at a depth of 350 m intersected 25.8 mineralization interpreted as the southern extent of Main Mine mineralization. DDH-11-005 was collared at a dip of -70⁰ toward an azimuth of 220⁰. It was completed to a depth of 604 m intersecting mineralization interpreted as the southeast extent of the Main Mine deposit extending the plunge extension of it to 450 m approximately doubling the extent of previously mined mineralization.

Mineralization intersected in DDH-11-001 thought to be consisted dominantly of variably deformed and disseminated sulphide stringers that consisting of pyrite, chalcopyrite and variably disseminated sphalerite consistent with descriptions of the footwall disseminated zone. DDH-11-001 located northeast of the former Main Mine head frame successfully tested a substantial width of mineralization near the centre of the down plunge extension of the Main Mine deposit. Gold analyses received from samples of the mineralization intersected during 2011 drilling are listed in Table 1 above. The rest of the holes drilled along the margins of the deposit tested IP anomalies along the periphery of the deposit providing some encouragement by returning anomalous gold concentration that did not meet, with the exception of DDH-11-004 the criteria for inclusion in Table 3. As an example, gold values intersected in DDH-11-005 included 388 ppb over 4.0 m from 517.70 m to 521.7 m and interval that included 562 ppb over 3.0 m from 517.70 m to 520.7 m. The highest gold value encountered in DDH-11-005 was 818 ppb (0.8 g/t) over a width of 1.0 m from 518.7 m to 519.7 m

Core from the 2011 drilling campaign was transported directly from drill site to a secure core storage facility where it was logged by a professional geologist, marked for sampling and cut for sampling. Half of the core was kept in the core box which was labeled and stored in core racks on site for future reference. The cut core samples were collected by hand, bagged and tagged. Blanks and standards were inserted every 10 samples as a check on lab accuracy. The samples, and inserted standards and blanks were shipped to Accurassay Laboratories Ltd in Gambo, Newfoundland where they were crushed, prepped for analysis (as pulps), and shipped to Accurassay Laboratories Ltd for chemical analyses in Thunder Bay, Ontario.

All core samples were analysed for gold by fire assay and 32-element ICP. In addition to the reference standards and blanks inserted in the field, internal QA/QC procedures for all samples at Accurassay Ltd are reported include the analysis of a duplicate every 10 samples which is reported and crusher replicate every 60 samples. For gold by fire assay (as reported above) furnace batches are made up to include 28 crucibles of which 22 are samples, 2 are duplicate / replicates, 1 is a certified reference material, and 1 is a blank. During the analysis of each fire assay batch the machine calibration is checked for accuracy. Machine drift is monitored at the start and at the end of analytical runs.

Mr. James Weick, P.Geo is the qualified person as defined by National Instrument 43-101 and is responsible for the geological technical information of this release.

CAUTIONARY STATEMENT:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This News Release includes certain “forward-looking statements”.  All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of GoGold including completion of the Acquisition Transaction and completion of the Offering by Absolute, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from GoGold’s expectations are exploration risks detailed herein and from time to time in the filings made by GoGold with securities regulators.