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PI Financial has initiated coverage on GoGold Resources (TSX: GGD)

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Analyst Christos Doulis gives the company a buy recommendation along with a speculative risk rating, and a 12 month target price of $2.25. This is a premium of 33% to the $1.69 price on October 22nd, the day the report was issued. GoGold is based in Halifax, Nova Scotia, with operations in Mexico.

Additional Information:

Company: GoGold Resources
Website: http://www.gogoldresources.com/
Stock Symbol: TSX: GGD
Date Published: Oct 28, 2014
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch Media

PI Financial has initiated coverage on GoGold Resources, symbol GGD on the Toronto Stock Exchange.

Analyst Christos Doulis gives the company a buy recommendation along with a speculative risk rating, and a 12 month target price of $2.25. This is a premium of 33% to the $1.69 price on October 22nd, the day the report was issued.

GoGold is based in Halifax, Nova Scotia, with operations in Mexico.

The company achieved initial production at its Parral Tailings Project in June 2014 and is working towards commercial production during the 4th quarter of 2014.

PI Financial expects this to lead to 500,000 ounces of silver production in the full year, generating about $14 million of revenue.

In addition to the tailings currently associated with and being processed at Parral, there are additional sources of tailings nearby, the largest of which is estimated at approximately 10 million tonnes and is located on the other side of the town of Parral, well within trucking distance.

Analyst Christos Doulis stated: “We expect Parral to be a low cost producer able to generate free cash flow even in weak silver price environments.”

The company acquired the Santa Gertrudis project in April 2014 as part of the company’s $11 million purchase of Animas Resources, and tabled a Preliminary Economic Assessment for the project in September.

The PEA outlines a 56,000 ounce annual gold production profile for 12 years at an average cash cost of US$622 per ounce.

GoGold intends to fast-tract Santa Gertrudis to production with a goal of a first gold pour in mid-2015.

The company’s San Diego Project, while early stage, has returned positive drill results and could provide meaningful growth in the future.

The company has assembled a strong operating team with a track record of acquiring, improving and selling assets to larger companies, generating significant returns for shareholders.

The company currently trades at $1.68, and with 147.8 million shares outstanding, the company is capitalized at $248.3 million.

For more information, please visit the company’s website www.gogoldresources.com or contact Sean Tufford, VP Corporate Development at 902-482-1998 or email sean@gogoldresources.com.

For more information about PI Financial or to obtain a copy of their research report, contact your nearest PI Financial office. Their branches are listed on their website at www.pifinancialcorp.com.

I’m Samantha Deutscher for InvestmentPitch Media
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This video is for information purposes only and it is not a recommendation to buy or sell any securities.