Goldgroup Hits the Highest Grade Hole To-Date at Caballo Blanco 3.47 g/t Gold Over 48.50 Metres
VANCOUVER, April 7 /CNW/ --
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TSX: GGA
VANCOUVER, April 7 /CNW/ - Goldgroup Mining Inc. ('Goldgroup' or the
'Company'), is pleased to announce that the current drilling program at
its Caballo Blanco gold project in Veracruz, Mexico has encountered
gold mineralization yielding 3.47 g/t Au over 48.50 metres (Hole 10 CBN
73). The 500 km² Caballo Blanco property hosts multiple mineralized
zones comprising numerous geological targets.
Keith Piggott, President and CEO of Goldgroup, stated: 'I am very
excited by these results as this latest drill hole demonstrates that
the mineralization at the La Paila zone extends strongly in a southerly
direction. As a result, Goldgroup has decided to expand its 30,000
metre drill program at Caballo Blanco by increasing to five diamond
drills.'
LA PAILA ZONE
Drill Hole Mineralization
From (m) To (m) Interval (m) Au grade (g/t)
10 CBN 73 130.00 178.50 48.50 3.47
The hole presented above intersected mineralization well in excess of
the 0.2 g/t Au cut-off grade used in estimating the inferred mineral
resource presented in the current Caballo Blanco NI 43-101 technical
report amended February 28, 2011. However, with current gold prices and
the mineralized zone consisting of vuggy silica breccias, coupled with
a potentially low strip ratio and good accessibility, Goldgroup feels
that a lower cut-off grade may be more appropriate. This result is
part of the current drill program that commenced in October, 2010 and
is intended to be used in the preparation of an updated mineral
resource estimate.
About Caballo Blanco
Goldgroup owns a 70% interest in Caballo Blanco. The remaining 30%
interest is owned by Almaden Minerals Ltd. The current estimated
indicated mineral resource of 139,000 ounces of gold (6.7 million
tonnes grading 0.65 g/t Au) and inferred resource of 517,000 ounces of
gold (27.6 million tonnes grading 0.58 g/t Au) covers only the La Paila
area in the Northern Zone of Caballo. This estimate was compiled from
32 diamond drill holes totaling approximately 7,000 meters completed by
NGEx Resources Inc. prior to Goldgroup's acquisition of its interest in
the project from NGEx in November 2009.
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 collected by
Inspectorate America Corp. ('Inspectorate') and transported to their
preparation facility at Durango, Mexico where they were dried and
crushed 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. 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 15 samples sent the laboratory. The Caballo Blanco drill
program is under the direct supervision of Kevin Sullivan, B.Sc.,
MAusIMM, the Company'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
news release.
About Goldgroup
Goldgroup is a well-funded 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. Goldgroup's property portfolio includes its interests in its
flagship project, Caballo Blanco in Veracruz and the San José de Gracia
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 'forward-looking'. 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
Caballo Blanco 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. Forward-looking statements are
subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to materially
differ from those reflected in the forward-looking statements, and are
developed based on assumptions about such risks, uncertainties and
other factors including, without limitation: fluctuations in precious
and base metal prices; inherent hazards and risks associated with
mining operations; inherent uncertainties associated with mineral
exploration and development activities; uncertainties inherent in the
estimation of mineral reserves and/or resources and precious metal
recoveries; uncertainties related to actual capital costs, operating
costs and expenditures, production schedules and economic returns from
Goldgroup's projects; uncertainties related to current global financial
conditions; uncertainties related to the availability of future
financing necessary to undertake exploration, development, mining and
processing activities on Goldgroup's properties; Goldgroup's
substantial reliance on its Cerro Colorado Mine for revenues; risks
related to the planned expansion of the Cerro Colorado Mine; risks
related to the continued operation and planned expansion of the Cerro
Colorado Mine without a current economic analysis; risks related to the
integration of businesses and assets acquired by Goldgroup;
uncertainties related to the competitiveness of the mining industry;
risks associated with Goldgroup being subject to government regulation,
including changes in law and regulation and risks associated with
Goldgroup's need for governmental licenses and permits; risks
associated with Goldgroup being subject to extensive environmental laws
and regulations, including a change in regulation; risks that
Goldgroup's title to its property could be challenged; political and
country risk; risk of water shortages and risks associated with
competition for water; Goldgroup's need to attract and retain qualified
personnel; increases in off-site transportation and concentrate
processing costs; risks related to the need for reclamation activities
on Goldgroup's properties, including the nature of reclamation required
and uncertainty of costs estimates related thereto; risks associated
with potential conflicts of interest; risks associated with potential
labour disputes; and risks associated with potential blockades of
mining operations 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. The true width of the intercept disclosed in this news
release is unknown at this time.
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.
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For further information on Goldgroup, please visit www.goldgroupmining.com or contact:
Keith Piggott, President & CEO
T: 604-682-1943
David Fry, Corporate Development
Toll Free: 1-877-655-ozAu (6928)