2012 News Releases
May 16, 2012
Goldgroup Files Updated NI 43-101 Technical Report on the Cerro Colorado Gold Mine
Vancouver, British Columbia - (May 16, 2012) - Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX:GGA) announces that the technical report on the updated mineral resource estimate on the Cerro Colorado gold mine titled "NI 43-101 Technical Report, Cerro Colorado Gold Mine, Sonora, Mexico" (the "Technical Report"), effective February 29, 2012 and dated May 14, 2012, has been filed on the Company's website and on SEDAR in compliance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") requirements.
The Technical Report outlines the Company's mineral resource estimate at the Cerro Colorado gold mine, establishing measured resources of 14,000 ounces of gold, indicated resources of 30,000 ounces of gold and inferred resources of 56,000 ounces of gold using a cutoff grade of 0.20 g/t Au.
Table 1: Measured Resources in Mineralized Portion of Blocks
Cut-off Grade |
Tonnes > Cut-off |
Grade > Cut-off |
Contained Metal |
---|---|---|---|
0.10 |
1,030,000 |
0.48 |
16,000 |
0.15 |
860,000 |
0.55 |
15,000 |
0.20 |
720,000 |
0.62 |
14,000 |
0.25 |
630,000 |
0.68 |
14,000 |
0.30 |
540,000 |
0.75 |
13,000 |
Table 2: Indicated Resources in Mineralized Portion of Blocks
Cut-off Grade |
Tonnes > Cut-off |
Grade > Cut-off |
Contained Metal |
---|---|---|---|
0.10 |
2,770,000 |
0.39 |
34,000 |
0.15 |
2,270,000 |
0.44 |
32,000 |
0.20 |
1,860,000 |
0.51 |
30,000 |
0.25 |
1,530,000 |
0.57 |
28,000 |
0.30 |
1,260,000 |
0.63 |
25,000 |
Table 3: Inferred Resources in Mineralized Portion of Blocks
Cut-off Grade |
Tonnes > Cut-off |
Grade> Cut-off |
Contained Metal |
---|---|---|---|
0.10 |
4,110,000 |
0.46 |
61,000 |
0.15 |
3,590,000 |
0.51 |
59,000 |
0.20 |
3,050,000 |
0.57 |
56,000 |
0.25 |
2,720,000 |
0.62 |
54,000 |
0.30 |
2,400,000 |
0.66 |
51,000 |
SRK Consulting of Denver, Colorado was retained to prepare a pit optimization report based on the block model prepared for the mineral resource estimate. A Whittle Shell pit was designed using the following parameters:
|
Cost |
---|---|
Mining Cost ($/tonne mined) |
US$ 1.84 |
Processing Cost ($/tonne of ore mined) |
US$ 2.69 |
G&A Cost ($/tonne of ore mined) |
US$ 1.61 |
Selling Cost ($/troy oz sold) |
US$ 13.57 |
Royalty to Treasury Metals |
3% of (Selling Price minus Selling Cost ) |
Overall slope angle (degrees) |
50° |
Gold Recovery (%) |
60% |
Gold Price ($/oz) |
US$1,500 |
Based on the Whittle Shell defined incorporating the above criteria, measured and indicated resources of 33,000 ounces of gold and inferred resources of 1,300 ounces of gold lie within the Whittle Shell pits using a cut-off grade of 0.20 g/t Au.
Table 4: Measured Resources in Mineralized Portion of Blocks within SRK Pit Outline
Cut-off Grade |
Tonnes > Cut-off |
Grade > Cut-off |
Contained Metal |
---|---|---|---|
0.10 |
670,000 |
0.61 |
13,000 |
0.15 |
620,000 |
0.65 |
13,000 |
0.20 |
570,000 |
0.70 |
13,000 |
0.25 |
510,000 |
0.75 |
12,000 |
0.30 |
460,000 |
0.81 |
12,000 |
Table 5: Indicated Resources in Mineralized Portion of Blocks within SRK Pit Outline
Cut-off Grade |
Tonnes > Cut-off |
Grade > Cut-off |
Contained Metal |
---|---|---|---|
0.10 |
1,150,000 |
0.57 |
21,000 |
0.15 |
1,100,000 |
0.59 |
21,000 |
0.20 |
1,020,000 |
0.62 |
20,000 |
0.25 |
910,000 |
0.67 |
19,000 |
0.30 |
790,000 |
0.72 |
18,000 |
Table 6: Inferred Resources in Mineralized Portion of Blocks within SRK Pit Outline
Cut-off Grade |
Tonnes > Cut-off |
Grade > Cut-off |
Contained Metal |
---|---|---|---|
0.10 |
83,000 |
0.52 |
1,400 |
0.15 |
74,000 |
0.56 |
1,300 |
0.20 |
64,000 |
0.62 |
1,300 |
0.25 |
51,000 |
0.72 |
1,200 |
0.30 |
44,000 |
0.79 |
1,100 |
The Technical Report was prepared for the Company by Marc Simpson, P.Geo., the Company's qualified person under National Instrument 43-101 Standards with the mineral resource estimate prepared by Gary H. Giroux, P.Eng., MASc., of Giroux Consultants Ltd., an independent qualified person under National Instrument 43-101 Standards. The Whittle Shell was prepared by Fernando Rodrigues BSc, MBA, MAusIMM, MMSAQP of SRK Consulting, an independent qualified person under National Instrument 43-101 Standards.
About Goldgroup
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 the state of Veracruz, and a 50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of the high-grade gold exploration project, San José de Gracia located in the state of Sinaloa. The Company also operates its 100%-owned Cerro Colorado gold mine in the state of Sonora.
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 increase 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
T: 604-682-1943
Stephanie Batory, Investor Relations
Toll Free: 1-877-655-ozAu (6928)
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