2012 News Releases
February 10, 2012
Goldgroup Drills Additional Gold Intercepts at the La Paila Zone at Caballo Blanco and Hires New Vice President, Technical and Project Execution
Vancouver, British Columbia (February 10, 2012) -- Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX:GGA) is pleased to announce that additional diamond drill holes at the Company's 100% wholly owned Caballo Blanco gold project in Veracruz, Mexico have yielded significant gold intercepts. All diamond drill holes encountered completely oxidized, vuggy and siliceous rock occurring within and peripheral to the La Paila Zone, which lies within the Northern Zone. 16 of the 19 drill holes reported below (see Tables 1 and 2, and the drill hole location map) contain intervals above the established cut-off grade and are part of the ongoing drill program intended to increase mineral resources at Caballo Blanco. Of the 19 drill holes reported below, seven of these drill holes further define the La Paila mineral resource, and the remaining 12 drill holes were drilled to expand the southwestern flank of the La Paila Zone. The zone currently remains open to the south and southwest.
Keith Piggott, President and CEO of Goldgroup, stated, "We are pleased with these new diamond drill results, which continue to confirm, define and expand the La Paila Zone. As we continue to receive positive results from our 2011 drill program and conduct our additional 30,000 metre drill program in 2012, we expect to increase resources at the La Paila Zone. Furthermore, Management expects to identify new zones of mineralization in both the Northern Zone and Highway Zone through its 2012 diamond drill program."
The Company focused its 2011 drill program primarily on the La Paila Zone, specifically with the objectives of designing the first open pit and updating the current NI 43-101 mineral resource estimate for Caballo Blanco. Moreover, in-house and consultant engineering have significantly advanced Goldgroup's column leach testing in its large on-site facility and progressed leach pad and carbon recovery plant design. The drilling and infrastructure work at Caballo Blanco, combined with the anticipated updated NI 43-101 mineral resource estimate, are intended to form the basis of a preliminary economic assessment (PEA) expected to be completed in the first quarter of 2012. The current drill 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 commencement of production at Caballo Blanco by 2012 year-end.
As part of Goldgroup's ongoing 30,000 metre drill program in 2012, the Company expects to continue diamond drilling in the La Paila Zone, in addition to diamond drilling a number of identified geochemical and geophysical targets occurring to the south, southwest and northeast of the La Paila Zone, all within the large Northern Zone ring structure. Furthermore, the Company also intends to drill targets in the Highway Zone, which is located approximately seven kilometres to the southeast of the Northern Zone.
Table 1. Drill-Hole Results for the Caballo Blanco Project, Mexico
|From (m)||To (m)||Interval (m)||Au grade (g/t)|
|11 CBN 160||nsv|
|11 CBN 161||99.55||111.55||12.00||0.29|
|11 CBN 162||91.95||95.95||4.00||0.76|
|11 CBN 163||118.40||123.90||5.50||0.34|
|11 CBN 164||nsv|
|11 CBN 165||202.18||218.18||16.00||0.49|
|11 CBN 166||71.35||111.65||40.30||0.94|
|11 CBN 167||146.22||222.22||76.00||0.98|
|11 CBN 168||204.80||208.80||4.00||0.38|
|11 CBN 169||134.00||152.90||18.90||0.60|
|11 CBN 170||227.62||245.62||18.00||0.38|
|11 CBN 171||217.50||233.50||16.00||0.40|
|11 CBN 172||97.80||101.80||4.00||0.24|
|11 CBN 173||nsv|
|11 CBN 174||329.25||341.25||12.00||0.29|
|11 CBN 175||177.50||182.78||5.28||0.37|
|11 CBN 176||52.90||72.90||20.00||0.57|
|11 CBN 177||216.85||226.85||10.00||1.14|
|11 CBN 178||30.00||38.00||8.00||0.43|
For a drill hole location map, click here.
Of the holes presented above, 16 intersected gold mineralization in excess of the 0.2 g/t Au cut-off grade used in the current Caballo Blanco NI 43-101 technical report dated February 28, 2011, which is available on SEDAR. However, it is expected that as a result of favourable leach kinetics, recovery and ease of mining, a lower cut-off grade may be applicable.
The results presented today are part of the 2011 drill program and are intended to be used in the preparation of the anticipated updated NI 43-101 mineral resource estimate. Drill holes 11 CBN 161, 162, 163, 166, 167, 172 and 176 were all drilled within the main La Paila Zone to further define the mineral resource. Five of these seven drill holes encountered mineralized intervals at widths and gold grades comparable to those used in the initial resource calculation. Drill hole 11 CBN 162 encountered sporadic mineralization above the 0.2 g/t cut off grade, on the western flank of the main zone. Drill hole 11 CBN 163 cut sporadic low grade mineralization within a zone of massive silica alteration in the central portion of the main zone. Drill holes 11 CBN 160, 164, 165, 168, 169-171, 173-175, 177 and 178 were all collared on the western and southwestern flank of the La Paila Zone and extend the mineralisation a further 100m down plunge to the southwest. A complete summary of the assay results from diamond drill holes DDH 11 CBN 160 to DDH 11 CBN 178, as well as a drill-hole location map of the La Paila Zone detailing the relative locations of all historical drill holes will be posted on the Goldgroup website
Table 2. Drill Hole Location Data, Caballo Blanco Project, Mexico
|Drill Hole||East UTM Coord||North UTM Coord||Elevation||Azimuth||Plunge||Total Length|
|11 CBN 160||768118||2184150||535.7||0°||-90||233.0|
|11 CBN 161||768350||2184703||508.3||090||-45||302.7|
|11 CBN 162||768167||2184445||484.8||270||-80||305.4|
|11 CBN 163||768222||2184403||501.3||180||-50||356.4|
|11 CBN 164||768070||2184151||527.4||0||-90||299.0|
|11 CBN 165||768119||2184098||510.4||0||-90||367.0|
|11 CBN 166||768210||2184493||505.9||90||-80||317.4|
|11 CBN 167||768350||2184700||508.5||135||-45||281.3|
|11 CBN 168||768118||2184047||500.0||0||-90||363.7|
|11 CBN 169||768266||2184051||514.5||0||-90||299.8|
|11 CBN 170||768225||2184050||536.5||0||-90||299.6|
|11 CBN 171||768172||2184049||505.6||0||-90||322.5|
|11 CBN 172||768307||2184062||497.5||90||-75||278.7|
|11 CBN 173||768067||2184099||511.4||0||-90||358.0|
|11 CBN 174||768067||2184046||502.1||0||-90||361.5|
|11 CBN 175||768170||2183999||495.9||0||-90||301.5|
|11 CBN 176||768308||2184062||497.5||90||-50||249.9|
|11 CBN 177||768114||2183990||484.9||0||-90||388.0|
|11 CBN 178||768021||2184103||517.3||0||-90||301.5|
About Caballo Blanco
Goldgroup owns 100% of the Caballo Blanco gold project which consists of a series of fully oxidized gold zones located in the State of Veracruz in eastern Mexico. The principal known gold zone at Caballo Blanco is the La Paila Zone located within a cluster of high-sulphidation epithermal alteration zones referred to as the Northern Zone. The current NI 43-101 mineral resource estimate for the La Paila Zone was compiled from 32 diamond drill holes totalling approximately 7,000 metres completed by NGEx Resources Inc., prior to Goldgroup's acquisition of its interest in the project in November 2009. This mineral resource estimate 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. NGEx Resources Inc. drilled an additional 8 drill holes at the Caballo Blanco project outside the La Paila Zone. Subsequently, Goldgroup has drilled an additional 149 holes in 2010 and 2011, for a total of 189 holes drilled to date at the Caballo Blanco project.
During 2011, Goldgroup completed a 30,000 metre, 120 hole drill program, of mostly HQ core, centered largely on the La Paila mineralized zone. The Company has received assays for all 2010 drill program holes and 111 of the 120 holes drilled in its 2011 program, which are expected to be used to update the NI 43-101 mineral resource estimate.
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 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 ten samples sent to the laboratory. The information in this news release has been approved by Marc Simpson, P. Geo., the Company's Qualified Person under National Instrument 43-101 standards.
Goldgroup Hires New Vice President, Technical and Project Execution
Goldgroup is also pleased to announced that it has hired Mr. Patrick Glynn as the Company's Vice President, Technical and Project Execution. Mr. Glynn is a graduate metallurgist from the University of the Witwatersrand in Mineral Processing Engineering. Mr. Glynn has 35 years of experience in the operation and design of gold, copper, nickel and PGM's processing facilities. He has worked in Zimbabwe, South Africa, Russia, Australia and Laos providing expertise in mineral processing and project management. From December 2009 to January 2012 he held the position of Project Manager for Rosemont Copper Company, managing a billion dollar project. Prior to Rosemont Copper Company, he was the Senior Project Manager at AMEC International on a multibillion dollar Potash expansion project in Saskatchewan. Mr. Glynn has also spent a significant part of his career at Bateman Engineering as a Project Manager for the Sepon gold and copper projects in Laos and as a mineral processing engineer/manager.
Goldgroup is a well-funded Canadian-based gold production, development, and exploration Company with significant upside in a portfolio of projects in Mexico, including its flagship 100%-owned advanced stage gold development project, Caballo Blanco, in Veracruz, and the 50%-owned high grade gold exploration project, San José de Gracia, in Sinaloa. The Company operates the 100%-owned Cerro Colorado gold mine in Sonora, Mexico.
Goldgroup remains in a flexible financial position with a strong cash balance, no debt and no gold hedging.
The Company is led by a team of highly successful and seasoned individuals with extensive expertise in mine development, corporate finance, and exploration in Mexico. Goldgroup's mission is to grow gold production, mineral resources, profitability and cash flow, building a leading gold producer in Mexico.
For further information on Goldgroup, please visit www.goldgroupmining.com
On behalf of the Board of Directors
Keith Piggott, President & CEO
Stephanie Batory, Investor Relations
Toll Free: 1-877-655-ozAu (6928)
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