Goldgroup Mining Inc.: 34.36 g/t Gold Intercepted Over 4.10 Metres at San José de Gracia's Tres Amigos Vein

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

VANCOUVER, Feb. 7 /CNW/ - Goldgroup Mining Inc. ("Goldgroup" or the "Company"), in coordination with DynaResource, Inc. ("DynaUSA"-"DYNR-OTCBB"), is pleased to announce that diamond drilling from the current 18,500 meter diamond drilling program at the San José de Gracia project in Sinaloa, Mexico ("San José de Gracia") has encountered notable gold mineralization yielding 18.47 g/t Au over 8.04 metres including 34.36 g/t Au over 4.10 metres, (Hole SJG-10-226) plus many intercepts above the 2.0 g/t Au cut-off grade.

Following on from the successful drill results at the San Pablo shoot, Goldgroup is pleased to announce the latest 8 diamond drill results from the Tres Amigos shoot located approx 800 metres to the north of the San Pablo shoot. Mineralisation on this shoot continues open down plunge to the west and to the north along strike. Significant assay results from this diamond drill program (SJG-10-225 to SJG-10-232) drilled in the Tres Amigos vein are presented in the tables below:


TRES AMIGOS VEIN

Drill Hole
Mineralization

SJG-10-225
From
(m)
To (m)
Interval (m)
Au grade
(g/t)

163.55
163.95
0.40
3.63

SJG-10-226
205.05
213.09
8.04
18.47

including
205.05
209.15
4.10
34.36

SJG-10-227
176.95
186.75
9.80
8.42

including
186.35
186.75
0.40
113.95

SJG-10-228
155.75
157.58
1.83
3.88

and
164.31
167.29
2.98
3.73

SJG-10-229
236.70
238.34
1.64
2.41

and
305.05
306.60
1.55
5.46

SJG-10-230
244.91
249.45
4.54
18.09

including
244.91
247.45
2.54
31.52

SJG-10-231
214.17
214.69
0.52
2.62

and
266.70
269.45
2.75
8.99

and
279.10
280.80
1.70
2.34

SJG-10-232
139.86
141.73
1.87
3.15

The holes presented above intersected mineralization in excess of the 2.0 g/t Au cut-off grade used in estimating the inferred mineral resource presented in the San José de Gracia NI 43-101 Technical Report dated March 22, 2010. Results from these latest holes and the prior 98 holes announced in the news releases of June 11, 2010, September 8, 2010, September 20, 2010, December 7, 2010 and January 13, 2011 represent new drilling completed since the calculation of the current mineral resource estimate and are intended to be used in the estimation of an updated mineral resource.

A complete summary of the assay results from drill holes SJG-10-189 to SJG-10-232 and a map of the San José de Gracia property detailing the relative locations of the drill holes used in estimating the current NI 43-101 mineral resource, this latest drill program and future proposed drilling, will be posted on the Company\'s website under "Projects - San José de Gracia" at www.goldgroupmining.com.

The San José de Gracia District, covering 99,500 hectares, is 100%-owned by DynaResource de Mexico S.A. de C.V ("DynaMexico"). Goldgroup currently owns 25% of DynaMexico after completing the initial stages of its earn-in and has the right to earn an additional 25% (total of 50%) by advancing a remaining US$3.0 million by March 15, 2011. The recent drilling expenditures were incurred in connection with the earn-in of the additional 25% of DynaMexico. The remaining interest in DynaMexico is owned by DynaUSA. San José de Gracia is a high-grade advanced exploration project hosting a NI 43-101 compliant mineral resource estimate contained in four separate veins: Tres Amigos, San Pablo, La Union area and the La Purisima trend. Please refer to the NI 43-101 technical report on San José de Gracia dated March 22, 2010 which is available on SEDAR.


Assaying and Qualified Person

After project geologists logged and marked the core, technicians cut the individual lengths with a diamond saw, then tagged the bags and secured them with security clips. The samples were then trucked to Hermosillo, Mexico where Inspectorate America Corp. ("Inspectorate") crushed each sample to -150 mesh. The rejects remained with Inspectorate while the pulps were air couriered to Inspectorate\'s Richmond, BC, Canada facility and analyzed for gold by fire assay with Atomic Absorption ("AA") finish. Samples over 1.0 grams per tonne gold were re-run using fire assay with gravity finish. In addition, a 30 element Inductively Coupled Plasma ("ICP") analysis (aqua regia digest) was conducted on all samples. A QA/QC program was implemented as part of the sampling procedure for the drill program. One standard, one blank or one duplicate was inserted per group of 20 samples sent the laboratory. These standards were purchased commercially from Rocklabs Ltd. of Auckland, New Zealand. The San José de Gracia drill program is under the direct supervision of Kevin Sullivan, B.Sc., MAusIMM, contracted by Mineras de DynaResource S.A. de C.V., the operating entity at San José de Gracia. Mr. Sullivan is Goldgroup\'s Vice President, Exploration and a qualified person, as defined by NI 43-101. Mr. Sullivan has reviewed the technical information contained in this news release and reviewed the release.


About Goldgroup

Goldgroup is a Canadian-based gold production and exploration Company focused exclusively on Mexico, targeting growth in gold production, mineral resources, profitability and cash flow from a portfolio of production, development and exploration stage projects. The Company owns and operates the Cerro Colorado Gold Mine in Sonora, Mexico. The Company\'s property portfolio includes its interests in the Caballo Blanco project in Veracruz and the San José de Gracia high-grade gold project in Sinaloa.

Goldgroup is lead by a team of highly successful and seasoned individuals with extensive expertise in exploration, corporate finance and mine development in Mexico.



CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain information contained in this news release, including any information relating to future financial or operating performance may be deemed "forwardlooking". All statements in this news release, other than statements of historical fact, that address events or developments that Goldgroup expects to occur, are "forward-looking information". These statements relate to future events or future performance and reflect Goldgroup\'s expectations regarding the future growth, results of operations, business prospects and opportunities of Goldgroup. These forward-looking statements reflect Goldgroup\'s current internal projections, expectations or beliefs and are based on information currently available to Goldgroup. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. Certain assumptions have been made regarding the Company\'s plans at the San José de Gracia property. Many of these assumptions are based on factors and events that are not within the control of Goldgroup and there is no assurance they will prove to be correct. Such factors include, without limitation: capital requirements, fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States and Mexico; price volatility in the spot and forward markets for commodities; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local governments in any country Goldgroup currently or may in the future carry on business; taxation; controls; regulations and political or economic developments in the countries in which Goldgroup does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as "Risks and Uncertainties" included in the Annual Information Form and MD&A for Goldgroup available at www.sedar.com. Forward-looking information is not a guarantee of future performance and actual results and future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in this news release is qualified by these cautionary statements. Although Goldgroup believes that the forward-looking information contained in this news release are based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. Goldgroup expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient drilling and exploration to define a mineral resource. It is uncertain if further drilling and exploration will result in the target being delineated as a mineral resource.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.



For further information:

Please visit www.goldgroupmining.com or contact:

Keith Piggott, CEO
T: 604-682-1943

David Fry, Corporate Development
Toll Free: 1-877-655-ozAu (6928)