Goldgroup Receives Explosives Permit and Environmental Approval for Caballo Blanco
VANCOUVER, May 2 /CNW/ --
TSX: GGA
VANCOUVER, May 2 /CNW/ - Goldgroup Mining Inc. ('Goldgroup' or the
'Company') is pleased to announce that it has received its explosives
permit and environmental approval for tunneling at the La Paila zone at
its Caballo Blanco gold project in Veracruz, Mexico.
Two tunnels will be driven into the La Paila zone for better
interpretation of the high-grade structures within the mineralized zone
and also to extract large scale bulk samples for pilot metallurgical
sampling to confirm the suitability of an open-cut, run-of-mine,
heap-leach gold operation.
Keith Piggott, Goldgroup's President and CEO, said, 'This is another
important milestone. Together with our diamond drilling program and
advanced on-site column leach testing, the granting of these approvals
is in line with our schedule to commence production at Caballo Blanco
in 2012.'
About Caballo Blanco
Goldgroup owns a 70% interest in Caballo Blanco. The remaining 30%
interest is owned by Almaden Minerals Ltd. The Caballo Blanco project
consists of a series of oxide gold zones located in the Veracruz
province of eastern Mexico. The initial gold zone at Caballo Blanco is
the La Paila prospect located within a cluster of high-sulphidation
epithermal gold deposits referred to as the Northern Zone. The current
estimated mineral resource for La Paila consists of 139,000 ounces of
gold (6.7 million tonnes grading 0.65 g/t Au) contained in indicated
resources and 517,000 ounces of gold (27.6 million tonnes grading 0.58
g/t Au) contained in inferred resources. This estimate was compiled
from 32 diamond drill holes totaling approximately 7,000 metres
completed by NGEx Resources Inc. prior to Goldgroup's acquisition of
its interest in the project from NGEx in November, 2009. Other known
gold zones at Caballo Blanco occur approximately 7 km to the southeast
at the Highway Zone. These gold zones have yet to be drill tested.
QA/QC
This news release has been prepared under the supervision of Mr. Kevin
Sullivan, B.Sc. MAusIMM, and the Company's Vice President of
Exploration who serves as the qualified person as defined by National
Instrument 43-101 responsible for ensuring that the geological
information in this release is accurate.
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 led 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.
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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)