I would now like to turn the conference over to John Turner, Chair of the Board of Directors of GoGold Resources Inc. Please go ahead, Mr. Turner.
Good evening, and welcome to the annual general meeting of the shareholders of GoGold Resources Inc. My name is John Turner, and I'm the Chair of the board of directors of the company. I believe that all of my fellow directors are on the line. Brad Langille, CEO, Terry Cooper, George Waye, Phillip Gaunce, and Karen Flores, as well as our officers. In addition to Brad, Dana Hatfield, Chief Financial Officer, Anis Nehme, Chief Operating Officer, Shawn Comeau, Vice President of Finance, and Glenn Jessome, Secretary of the Corporation. We will now proceed with the formal business of the meeting. Glenn Jessome will act as secretary of the meeting, the Chair, Computershare as scrutineer of the meeting. The notice calling this meeting was mailed by Computershare to all shareholders of record of February 22nd, 2022 .
The Secretary will append Computershare's declaration of mailing as a schedule to the minutes of this meeting. The scrutineer has completed its preliminary tabulation of shareholders present in person or represented by proxy. I ask the representative of Computershare to read the report on attendance.
Mr. Chairman, I, the undersigned scrutineer from Computershare Investor Services Inc., hereby report that there are at least two shareholders and/or proxy holders present at this meeting, representing in person or by proxy 145 million, 91,767 shares, being 52.12% of the total outstanding shares of GoGold Resources Inc.
Thank you. Pursuant to the bylaws of the corporation, the chair is satisfied a quorum of shareholders is present. Notice having been served in accordance with the corporation's bylaws and a quorum being present, I declare this meeting is duly constituted for the transaction of business. I ask the scrutineer to submit the final report on attendance as soon as it is available. We have a number of items of business to complete as part of the formal today. After that, management will provide an update on the corporation's activities. There are seven formal items of business before the meeting today. One, to review the minutes of the 2021 annual and special meeting of shareholders. Two, to receive the financial statements of the corporation for the year ended September 30, 2021, together with the report of the auditors thereon.
No vote by shareholders with respect to the financial statements is required or proposed to be taken. Three, to elect the directors for the forthcoming year. Four, to appoint the auditors of the corporation for the forthcoming year and to authorize the directors to fix the auditors' remuneration. Five, to consider and, if deemed advisable, pass a resolution ratifying and approving the corporation's Omnibus Equity Incentive Plan. Six, to approve the unallocated options issuable under the corporation's Stock Option Plan. Seven, finally, to transact such other business as may properly come before the meeting or any adjournment thereof. As we go through the formal items of business, I will read the resolutions and then call for a motion and a second. Dana Hatfield will move these motions, and Shawn Comeau will second these motions. I will read the vote.
All votes on the items of business before the meeting today are by ballot. Questions relating to the business of this meeting will be deferred until the Q&A session following the meeting. You may submit a question at any time through the Zoom chat function, and we will endeavor to address it during the Q&A session. Minutes of the annual and special meeting of shareholders held on March 4, 2021 are available to be read. Unless anyone wishes them read, the chair will entertain a motion to take the minutes as read and verified. Do I have such a motion?
Dana Hatfield makes the motion.
Do I have..
Shawn Comeau seconds.
Thanks both. Computershare has tallied the votes in advance and advised that today's vote is in favor. Accordingly, the motion is carried.
I declare that the minutes of the annual and special meeting of shareholders held on March 24, 2021 are taken as read and verified. The next item of business is to receive and consider the financial statements of the corporation for the year ended September 30, 2021, together with the report of the auditors. A copy of the financial statements and the auditor's report was mailed to shareholders. The auditor's report by KPMG LLP is unqualified. Any questions on the financial statements can be raised during the Q&A session following the meeting. The next item of business is the election of directors. The following persons are being nominated for board of directors. Bradley Langille, John Turner, Phillip Gaunce, George Waye, Terrence Cooper, and Karen Flores. There being no more nominees, the chair will close. Do I have such a motion?
Dana Hatfield makes the motion.
Do I have a seconder?
Shawn Comeau seconds.
Thanks both. We will now move on to the vote. Computershare has tallied the votes in advance and has advised that today's vote is in favor of the motion. Accordingly, the motion is carried. I declare Bradley Langille, John Turner, Phillip Gaunce, George Waye, Terrence Cooper, and Karen Flores to be the directors of the corporation to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed. The next item of business is to appoint the corporation's auditors. The chair will entertain a motion that KPMG LLP be reappointed auditors of the corporation to hold office until the next annual meeting of shareholders or until their successors are duly appointed, that the directors be authorized to fix the auditors' remuneration. Do I have such a motion?
Dana Hatfield makes the motion.
Thank you. Do I have a seconder?
Shawn Comeau second.
Thank you both. We will now move on to that vote. Computershare has tallied the votes in advance and has advised that today's vote is in favor of the motion. Accordingly, the motion is carried. I declare that KPMG LLP are appointed auditors of the corporation to hold office until the next annual meeting of shareholders, or until their successors are duly appointed, and that the directors be and are hereby authorized to fix the auditor's remuneration. The next item of business is to consider, and if deemed advisable, pass a resolution ratifying and approving the corporation's Omnibus Equity Incentive Plan.
The Omnibus Equity Incentive Plan was approved and adopted by the board of directors of the corporation on February 14, 2022, subject to shareholder approval, is a fixed security-based compensation plan providing for awards of stock options, deferred share units or DSUs, performance share units or PSUs, and restricted share units or RSUs. If adopted, the Omnibus plan will replace the corporation's legacy option plan, DSU plan, and RSU plan, which will continue in force for the sole purpose of facilitating the vesting and exercise and settlement of existing awards granted under the legacy plans. Once the existing awards granted under the legacy plan are exercised or terminated, the legacy plans will terminate and be of no further force or effect.
The Omnibus Equity Incentive Plan is described in detail in the Management Information Circular, and a copy is attached to Schedule D of the Management Information Circular. I will now entertain a motion to adopt a resolution approving the Omnibus Equity Incentive Plan in the form attached to Schedule D to the Management Information Circular. Do I have such a motion?
Dana Hatfield makes the motion.
Thank you. Do I have a seconder?
Shawn Comeau seconds.
Thank you both. Computershare has tallied the votes in advance and advised that today's vote is in favor of the motion. Accordingly, the motion is carried. I declare that the resolution relating to the corporation's Omnibus Equity Incentive Plan in the form set out in Schedule B to the Management Information Circular and is hereby approved and authorized. The next item of business is to approve all unallocated options issuable under the corporation's legacy amended and restated incentive option plan. The option plan was approved by shareholders at the corporation's annual and special meeting held March 26, 2013, in connection with the corporation's graduation to the Toronto Stock Exchange. The rules and policies of the TSX require that the shareholders approve the unallocated options issuable under option plan every three years.
The unallocated options were last approved at the corporation's annual meeting of shareholders in 2019. I will now entertain a motion to adopt a resolution approving the options in the form attached to Schedule C to the Management Information Circular. Do I have such a motion?
Yeah. Dana Hatfield makes the motion.
Thank you. Do I have a seconder?
Yeah. Shawn Comeau seconds.
Computershare has tallied the votes in advance and has advised that today's vote is in favor of the motion. Accordingly, the motion is carried. I declare that the resolution is passed, and that the unallocated options currently issuable under the corporation's legacy amended and restated incentive plan, incentive stock option plan B, and are hereby approved and authorized. Please note that as the Omnibus Incentive Plan has been approved at this meeting, all future grants of options will be made pursuant to that plan, and no further option plans will be made pursuant to the legacy option plan. The items of business as stated in the notice of meeting have now been dealt with. As there's no further business, the chair will entertain a motion to conclude the formal meeting.
Do I have a motion to conclude the meeting?
Dana Hatfield makes the motion.
Do I have a seconder?
Shawn Comeau seconds.
Thank you both. Computershare has tallied the votes in advance and advised that today's vote in favor of the motion. Accordingly, the motion is carried. The formal part of the meeting is now concluded. Management will now provide an update on the corporation's activities. Thank you. I will now ask the conference operator to open up the call for questions.
Thank you. We will now begin the question and answer session. If you are participating via the conference call, to join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. If you are participating via the webcast of the Zoom meeting, please use the chat feature to submit your question in writing. We will pause for a moment while participants indicate their desire to ask questions. Once again, if you have a question, please press star then one or use the Zoom chat feature to submit your question. As there are no questions, this does conclude the question and answer session. I would like to turn the conference back over to Mr. John Turner for any closing remarks.
John, I'll jump in here. I think that right now we'll transition over to Brad's presentation.
Okay. Thank you, Shawn. It's Brad Langille, CEO of the company, and we just have a very brief presentation on GoGold and what we've accomplished in the last year, looking forward to what we hope to accomplish in 2022. I'll just say that, we have slide presentation. I just will bring the audience to the attention of our forward-looking statements. We will make some forward-looking statements here. GoGold is subject to the normal risks that would be associated with a typical mining company, and those risks are around recoveries and resources, reserves. I'd also say that, you know, the junior mining, of course, is not a low risk investment.
If you are investing in junior mining, we would say that you do better investing with a team that has done this before. The team at GoGold has myself as CEO. I have more than 30 years experience in the mining industry, in the capital markets. GoGold is the fourth company that I've been involved with as Senior Management CEO, and GoGold now for the last 10 years. One thing that's notable that we've accomplished in the last 12 months is we've significantly strengthened our balance sheet. You know, we currently have $84 million US cash reserves in the bank. We do also note that we have a large receivable from the Mexican government for value added tax that we anticipate to start recovering some of that soon.
No debt, large ownership of the company by insiders. I myself is one of the largest shareholders, I believe, second largest shareholder of the company as CEO. We have large percentage of our investors are institutional investors, such as some of the names on the list on the slide in front of you. We'd also are members or n-members or a part of the GDX and the GDXJ indexes. The company has gained a lot in trading liquidity as well over the last 12 months with increased number of trades and daily volume, cash volume traded through the Toronto Stock Exchange on our stock. GoGold history in Mexico, we've accomplished a lot in the past. We've accomplished a tremendous amount in the last three years since we've acquired the Los Ricos project.
The company currently, of course, has our Parral operating mine, where we generate positive cash flow. We redeploy that cash flow into the operations of the company from a general administrative standpoint and also our exploration at our Los Ricos district. In Los Ricos, we primarily are exploring, drilling, expanding the resources and also completing engineering studies on the deposit at Los Ricos. Over the last twelve months, we focused primarily in Los Ricos North, and the district is divided into two parts, Los Ricos South and Los Ricos North. We have 44 concessions. When we entered the district in March of 2019, we had 29 concessions. We paid $7.4 million for those concessions.
This has been a story of resource definition along with consolidation of the district. We've expanded that district to 44 concessions, and we'll continue over the next year, some expansion of concessions in the Los Ricos district. In Los Ricos North, primarily where we've carried out a 100,000 meter drill program over the last 12 months. On December 7th, 2021, we released the results of that drill program in Los Ricos North. Great success with a total indicated resource of 87.8 million ounces of silver equivalent and a total inferred resource of over 73 million ounces of silver equivalent. A tremendous result for our first maiden resource in Los Ricos North.
Now, if we look at that resource, not only is it a large resource, if we categorize it in pit constrained or potentially open-pittable resource and at a 50-gram cutoff, we would have a grade of the indicated of 147 grams or 129.9 grams for the inferred. If you think about that more in gold equivalent resources, that averages out close to 2 grams of gold equivalent in potentially open-pittable resources, which certainly in Mexico, that's a tremendous grade for the resource. Anywhere in the world it is. Deposits with those kinds of grades in open pit have a good likelihood of moving on to economic studies and becoming mines. In Los Ricos South, we had drilled that before in 2020 and 2019.
There we've defined 63 million ounces of measured and indicated and another 20 million ounces of inferred. We've also advanced Los Ricos South to a preliminary economic assessment, which is the first preliminary look at the assessment or the economics of the deposit. There we defined at a 5% discount a net present value of $295 million for that deposit. That's based on a $21 silver price and a $1,550 gold price.
It projects an average all-in sustaining cost of a very low $11.35 per ounce. Combined resources for the Los Ricos District to date, in just three years of drilling and 170,000 meters of drilling, we're looking at approximately 244 million ounces of silver equivalent and 3.1 million ounces of gold equivalent. Really an important thing here is that they're very close to an average approaching 2 grams per gold equivalent, and primarily most of this being potential open-pit resources. The other thing we've been working on in the deposit, and of course what makes a deposit is metallurgy. If you cannot recover the metal out of the ore, then it could be worthless.
Here we've done a significant amount of metallurgy in Los Ricos South, and we've done a first pass in Los Ricos North, and both of those are showing recoveries in approximately 90% of the equivalent metals of silver equivalent metals. Very good recoveries, and looks like relatively straightforward processing at whole ore leaching. We envision that we would produce a doré bar here ultimately in production at Los Ricos. That's all good what we've accomplished over the last year and in the Los Ricos District in a very short period of three years.
The Los Ricos District, along with our work and our exceptional technical team, have brought the company from a market cap of less than CAD 100 million to where we are today, over CAD 900 million of market cap. Where do we go from here? Well, Los Ricos is a district that has never failed us at the drill bit and has enormous potential to add more ounces. We feel the best use of capital, the best return for the shareholders over the next 12 months is to continue that. We're deploying 9 drill rigs. We've budgeted a 100,000-meter drill program to define more ounces in Los Ricos North. We'll be pivoting back to Los Ricos South as well with drilling, where we defined additional ounces.
If we look at that drill program, over the next 12 months, it's going to be more focused on finding additional ounces. Probably more than 80% of that drilling will be focused on discovery of ounces and increasing the size of the resource, and the remainder will be on infill drilling. At the same time, in Los Ricos South, we plan on continuing with the engineering work to advance Los Ricos South forward from a preliminary economic assessment to a pre-feasibility study. Our operations at Parral continue. This June will mark eight years of production, continued production at Parral, and we have an additional seven years of reserves going into the future for Parral. We are optimizing that operation.
It continues to provide positive cash flow that we use to continue to fund the operations of the company, along with our very strong balance sheet. Parral, I just mentioned, is also an extremely strong ESG project, and the company is very focused on our ESG program. We published our ESG report, and we have we'll be updating periodically our ESG report as we move forward. But it's such a strong ESG project in that what we're doing here on the environmental side, we are literally removing up to 300-year-old tailings from the center of a city of 130,000 people, transporting them out to our 21st century agglomerated heap leach, where we process those tailings. In a zero discharge facility, we produce silver, gold, and copper.
We produce free cash flow doing that. We employ about 250 people. Our partner on this is the Municipality of Parral. We pay them $75,000 a month, which probably represents 10%-15% of their municipal budget. It surely ticks a lot of boxes for the ESG program for GoGold. With that, I'll conclude the presentation of the company's operations for 2021, and again, looking forward to 2022, and open it to any questions if anybody in the audience would have questions.
Once again, if you are participating via the conference call, to join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. If you are participating via the webcast of the Zoom meeting, please use the chat feature to submit your question in writing. We will pause for a moment while participants indicate their desire to ask a question. Once again, if you have a question, please press star then one or use the Zoom chat feature to submit your question. As there are no questions at this time, I would like to turn the conference back over to Mr. John Turner for any closing remarks.
Thank you very much for attending the annual special general meeting of GoGold Resources Inc. I'm delighted that all the resolutions are passed. Thank you very much, Brad, for the presentation. Thank you for all of you who helped make this meeting happen. I think that's it from my end.