Goldgroup Intercepts Significant Oxide Gold at Caballo Blanco, Mexico
VANCOUVER, Aug. 11, 2011 /CNW/ --
DDH 11 CBN 108: 84.77 m @ 0.71 g/t Au
DDH 11 CBN 112: 71.50 m @ 0.51 g/t Au
DDH 11 CBN 116: 94.80 m @ 0.53 g/t Au
TSX: GGA
VANCOUVER, Aug. 11, 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 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 all of which continue to be
contained in completely oxidized, vuggy and siliceous rock occurring
inside and peripheral to the existing La Paila zone. These results
continue to give better definition to the design of the first open pit
and its extension in a southwesterly direction. 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 and other engineering, form the basis for
targeting to bring Caballo Blanco into production in the second half of
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 105 | 143.10 |151.10| 8.00 | 0.26 |
|__________________|________|______|____________|______________|
| and | 263.10 |291.10| 28.00 | 0.34 |
|__________________|________|______|____________|______________|
| 11 CBN 108 | 34.47 |40.47 | 6.00 | 0.36 |
|__________________|________|______|____________|______________|
| and | 80.47 |165.24| 84.77 | 0.71 |
|__________________|________|______|____________|______________|
| 11 CBN 109 | 25.59 |47.59 | 22.00 | 0.25 |
|__________________|________|______|____________|______________|
| and | 69.59 |157.59| 88.00 | 0.33 |
|__________________|________|______|____________|______________|
| and | 180.00 |200.00| 20.00 | 0.30 |
|__________________|________|______|____________|______________|
| 11 CBN 110 | 113.30 |117.30| 4.00 | 0.30 |
|__________________|________|______|____________|______________|
| 11 CBN 111 | 106.60 |128.60| 22.00 | 0.52 |
|__________________|________|______|____________|______________|
| and | 317.50 |325.50| 8.00 | 1.04 |
|__________________|________|______|____________|______________|
| 11 CBN 112 | 52.70 |124.20| 71.50 | 0.51 |
|__________________|________|______|____________|______________|
| 11 CBN 113 | 40.83 |44.83 | 4.00 | 2.18 |
|__________________|________|______|____________|______________|
| and | 99.80 |116.40| 16.60 | 0.57 |
|__________________|________|______|____________|______________|
______________________________________________________________
| DIAMOND DRILLING - LA PAILA ZONE - Continued |
|______________________________________________________________|
| | Mineralization |
| |___________________________________________|
|Diamond Drill Hole|From (m)|To (m)|Interval (m)|Au grade (g/t)|
|__________________|________|______|____________|______________|
| 11 CBN 114 | 75.60 |92.80 | 17.20 | 0.30 |
|__________________|________|______|____________|______________|
| 11 CBN 115 | 171.10 |197.10| 26.00 | 0.26 |
|__________________|________|______|____________|______________|
| 11 CBN 116 | 113.50 |131.50| 18.00 | 0.49 |
|__________________|________|______|____________|______________|
| and | 145.50 |240.30| 94.80 | 0.53 |
|__________________|________|______|____________|______________|
| 11 CBN 117 | 154.00 |196.00| 42.00 | 0.62 |
|__________________|________|______|____________|______________|
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 DDH 10 CBN 54 to
DDH 11 CBN 117 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 Goldgroup's new 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 | 768285 | 2184148 | 504 | na | -90 | 310.50 |
| 105 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
| 11 CBN | 768357 | 2184049 | 499 | 90 | -60 | 237.98 |
| 108 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
| 11 CBN | 768329 | 2183946 | 503 | 90 | -70 | 252.00 |
| 109 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
| 11 CBN | 768221 | 2184300 | 496 | 90 | -80 | 211.30 |
| 110 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
| 11 CBN | 768240 | 2184052 | 523 | na | -90 | 334.50 |
| 111 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
| 11 CBN | 768348 | 2184204 | 489 | na | -90 | 200.44 |
| 112 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
| 11 CBN | 768199 | 2184355 | 493 | 90 | -65 | 170.40 |
| 113 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
| 11 CBN | 768198 | 2184303 | 492 | na | -90 | 182.20 |
| 114 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
| 11 CBN | 768260 | 2184354 | 495 | 90 | -75 | 256.30 |
| 115 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
| 11 CBN | 768296 | 2183946 | 515 | na | -90 | 240.30 |
| 116 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
| 11 CBN | 768153 | 2184048 | 498 | 90 | -70 | 340.40 |
| 117 | | | | | | |
|________|__________|__________|_________|_________|_________|________|
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 up to
drill hole 11 CBN 113. From drill hole 11 CBN 114 onwards, the samples
were collected by ALS Minerals and transported to their Guadalajara
preparation facility where they were dried and crushed to -2mm. A 250
gram split of the coarse material was then pulverized to -200 mesh.
The rejects remained at the prep facility and the pulps were air
couriered to ALS Minerals North Vancouver facility and analyzed for
gold by 30g fire assay with an AA finish. In addition, a 35 element
ICP analysis 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 to 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 is 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/August2011/11/c3055.html
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)