2011 News Releases
September 22, 2011
Goldgroup Begins Tunneling at Caballo Blanco
Vancouver, British Columbia - (September 22, 2011) -- Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX:GGA) is pleased to announce that, further to the Company's news release dated May 2, 2011, blasting and tunnel construction into the La Paila mineralized zone at Goldgroup's flagship gold project, Caballo Blanco in Veracruz, Mexico, has commenced.
The tunnel 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 plant on-site metallurgical testing 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, this tunnel development is consistent with our schedule to commence production at Caballo Blanco in 2012. The local communities have been very supportive of the Caballo Blanco gold project and many dignitaries and local representatives were present to witness the initial blast."
About Caballo Blanco
The Caballo Blanco project covers an area of approximately 55,000 hectares and is centered next to the Gulf of Mexico, 65 kilometres northwest of the city of Veracruz in the state of Veracruz, Mexico. In November, 2009, Goldgroup acquired from NGEx an option to acquire a 70% interest in the Caballo Blanco project from Almaden Minerals Inc. In August, 2011, the Company satisfied its obligations to earn its 70% undivided interest in the Caballo Blanco project. Further information of a technical or scientific nature related to the Caballo Blanco project is available in the technical report entitled "NI 43-101 Technical Report Caballo Blanco Project and a Resource Estimate at the La Paila Zone" dated February 28, 2011, which is available under Goldgroup's profile on SEDAR at www.sedar.com.
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.
For further information on Goldgroup, please visit www.goldgroupmining.com
Keith Piggott, President & CEO
David Fry, Corporate Development
Toll Free: 1-877-655-ozAu (6928)