Goldgroup Continues to Cut Significant Intercepts of Oxide Gold at Caballo Blanco, Mexico
VANCOUVER, June 28, 2011 /CNW/ --
DDH 11 CBN 104: 50.00 m @ 0.96 g/t Au
DDH 11 CBN 101: 65.96 m @ 0.85 g/t Au
DDH 11 CBN 91: 74.35 m @ 0.60 g/t Au
TSX: GGA
VANCOUVER, June 28, 2011 /CNW/ - Goldgroup Mining Inc. ('Goldgroup' or
the 'Company') is pleased to announce that additional diamond drill
holes at its Caballo Blanco gold project in Veracruz, Mexico have
yielded significant gold intercepts, extending the La Paila oxide gold
zone to the southeast and southwest. All the drill holes reported below
(see Tables 1 and 2) are exploration holes. Drilling remains ongoing to
define and to expand the eastern, southern and southwestern flanks of
the La Paila gold zone as the zone currently remains open in these
directions.
Keith Piggott, President and CEO of Goldgroup, stated: 'These diamond
drill results yielded gold intercepts contained in completely oxidized,
vuggy and siliceous rock occurring inside and peripheral to the
existing La Paila zone. They are similar in grade to the current NI
43-101 estimated mineral resource and continue to give better
definition to allow the design of the first open pit. The current
drilling program, together with the on-going column-leach metallurgical
testing, environmental and sociological studies as well as the run of
mine heap-leach pad design, form the basis for targeting to
bring Caballo Blanco into production in 2012.'
Table 1. Drill-Hole Results for the Caballo Blanco Project, Mexico
______________________________________________________________
| DIAMOND DRILLING - LA PAILA ZONE |
|______________________________________________________________|
| | Mineralization |
| |___________________________________________|
|Diamond Drill Hole|From (m)|To (m)|Interval (m)|Au grade (g/t)|
|__________________|________|______|____________|______________|
| 11 CBN 87 | 95.44 |137.10| 41.66 | 0.45 |
|__________________|________|______|____________|______________|
| 11 CBN 90 | 86.30 |134.30| 48.00 | 0.77 |
|__________________|________|______|____________|______________|
| 11 CBN 91 | 38.15 |112.50| 74.35 | 0.60 |
|__________________|________|______|____________|______________|
| 11 CBN 94 | 78.40 |92.40 | 14.00 | 0.40 |
|__________________|________|______|____________|______________|
| and | 106.40 |192.40| 86.00 | 0.40 |
|__________________|________|______|____________|______________|
| 11 CBN 95 | 81.15 |101.15| 20.00 | 0.83 |
|__________________|________|______|____________|______________|
| and | 111.15 |163.35| 52.20 | 0.31 |
|__________________|________|______|____________|______________|
| and | 175.35 |185.35| 10.00 | 0.29 |
|__________________|________|______|____________|______________|
| 11 CBN 96 | 88.58 |122.80| 34.22 | 0.50 |
|__________________|________|______|____________|______________|
| and | 290.80 |301.50| 10.70 | 0.38 |
|__________________|________|______|____________|______________|
| 11 CBN 97 | 84.30 |182.30| 98.00 | 0.31 |
|__________________|________|______|____________|______________|
| and | 232.80 |252.30| 19.50 | 0.28 |
|__________________|________|______|____________|______________|
______________________________________________________________
| DIAMOND DRILLING - LA PAILA ZONE - Continued |
|______________________________________________________________|
| | Mineralization |
| |___________________________________________|
|Diamond Drill Hole|From (m)|To (m)|Interval (m)|Au grade (g/t)|
|__________________|________|______|____________|______________|
| 11 CBN 98 | 38.10 |88.39 | 50.29 | 0.47 |
|__________________|________|______|____________|______________|
| and | 98.39 |175.28| 76.89 | 0.37 |
|__________________|________|______|____________|______________|
| 11 CBN 99 | 65.85 |81.30 | 15.45 | 0.28 |
|__________________|________|______|____________|______________|
| 11 CBN 100 | 97.50 |109.55| 12.05 | 0.34 |
|__________________|________|______|____________|______________|
| and | 143.55 |157.55| 14.00 | 0.70 |
|__________________|________|______|____________|______________|
| and | 233.55 |281.55| 48.00 | 0.51 |
|__________________|________|______|____________|______________|
| 11 CBN 101 | 43.78 |109.74| 65.96 | 0.85 |
|__________________|________|______|____________|______________|
| and | 139.74 |189.95| 50.21 | 0.41 |
|__________________|________|______|____________|______________|
| 11 CBN 104 | 98.85 |148.85| 50.00 | 0.96 |
|__________________|________|______|____________|______________|
For a drill hole location map, click here.
All the holes presented above that intersected gold mineralization are
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 available on SEDAR. The results presented today
are part of the current drill program and are intended to be used in
the preparation of an updated mineral resource estimate. A complete
summary of the assay results from diamond drill holes 10 CBN 54 to 11
CBN 104 as well as a drill-hole location map of the La Paila zone
detailing the relative locations of the drill holes will be posted on
the Company's website under 'Projects - Caballo Blanco' at www.goldgroupmining.com.
Table 2. Drill Hole Location Data, Caballo Blanco Project, Mexico
_____________________________________________________________________
| DD Hole |East UTM|North UTM|Elevation| Azimuth | Plunge | Total |
| Number | Coord | Coord |(m.a.s.l)|(degrees)|(degrees)| Length |
| |(metres) | (metres) | | | |(metres)|
|_________|_________|__________|_________|_________|_________|________|
|11 CBN 87| 768252 | 2184202 | 509 | 270 | -60 | 245.1 |
|_________|_________|__________|_________|_________|_________|________|
|11 CBN 90| 768350 | 2184150 | 487 | 90 | -70 | 134.3 |
|_________|_________|__________|_________|_________|_________|________|
|11 CBN 91| 768364 | 2183947 | 488 | 90 | -60 | 160.0 |
|_________|_________|__________|_________|_________|_________|________|
|11 CBN 94| 768354 | 2184153 | 481 | 90 | -80 | 377.4 |
|_________|_________|__________|_________|_________|_________|________|
|11 CBN 95| 768363 | 2184002 | 483 | 90 | -60 | 320.0 |
|_________|_________|__________|_________|_________|_________|________|
|11 CBN 96| 768155 | 2184152 | 481 | 135 | -50 | 301.5 |
|_________|_________|__________|_________|_________|_________|________|
|11 CBN 97| 768349 | 2184102 | 490 | 90 | -65 | 271.8 |
|_________|_________|__________|_________|_________|_________|________|
|11 CBN 98| 768357 | 2184000 | 487 | na | -90 | 220.0 |
|_________|_________|__________|_________|_________|_________|________|
|11 CBN 99| 768171 | 2184300 | 472 | na | -90 | 162.2 |
|_________|_________|__________|_________|_________|_________|________|
| 11 CBN | 768247 | 2184105 | 513 | 90 | -70 | 370.5 |
| 100 | | | | | | |
|_________|_________|__________|_________|_________|_________|________|
| 11 CBN | 768356 | 2184049 | 499 | na | -90 | 273.5 |
| 101 | | | | | | |
|_________|_________|__________|_________|_________|_________|________|
| 11 CBN | 768162 | 2184061 | 500 | 90 | -60 | 377.85 |
| 104 | | | | | | |
|_________|_________|__________|_________|_________|_________|________|
m.a.s.l = metres above sea level; Coord = Coordinate; na = not
applicable
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 principal gold zone at Caballo Blanco
is the La Paila prospect located within a cluster of high-sulphidation
epithermal alteration zones 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
the category of indicated resources and 517,000 ounces of gold (27.6
million tonnes grading 0.58 g/t Au) contained in the category of
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.
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. 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 scientific and technical 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 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 widths of the intercepts disclosed in this news
release are unknown at this time.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2011/28/c9631.html
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)