2012 News Releases
May 23, 2012
Goldgroup Provides Update on Change of Soil Use Permit Status at Caballo Blanco
Vancouver, British Columbia - (May 23, 2012) - Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX:GGA) has had its Change of Soil Use Permit, also known as the "Estudio Técnico Justificativo para Cambio de Uso de Suelo" ("ETJ"), returned to the Company, for its 100% owned Caballo Blanco gold project, from the Ministry of Environment and Natural Resources, also known as the Secretaría de Medio Ambiente y Recurso Naturales ("SEMARNAT"). Goldgroup submitted the ETJ to SEMARNAT, which is the federal environmental regulatory agency in Mexico, on December 16, 2011. The ETJ is evaluated by the regional office of SEMARNAT in Veracruz. Comments by SEMARNAT request that the Company provide further details on the following information for its ETJ application:
- Rescue programs for protected flora species
- Environmental mitigation measures for the project and how Goldgroup will measure its success
- Ecosystems affected by the use of environmental services (water, soil, air, etc.) required for the project
- Economic and social benefits of the project
The Company is committed to implementing appropriate designs and measures at Caballo Blanco to ensure the protection of the environment and to create a sustainable mining operation that is expected to benefit all stakeholders, including local and regional communities.
Status of Environmental Impact Statement Permitting Application
Goldgroup requires two independent environmental permits in order to operate the Caballo Blanco project; the Environmental Impact Statement ("EIS") and the ETJ. The EIS and ETJ are required for the commencement of construction at Caballo Blanco.
The EIS application was submitted by Goldgroup to SERMANAT on December 15, 2011. Formal comments from SEMARNAT in regards to Goldgroup's EIS application were received by the Company on March 13, 2012. The comments requested more information on risk mitigation, along with environmental protection and rehabilitation of several aspects of the proposed mining operations. In proactively addressing all of the comments from SERMANAT, Goldgroup will continue to ensure that the best interests of all stakeholders are factored into the development process of the project.
Goldgroup will provide a detailed written response for the EIS to SEMARNAT to sufficiently satisfy their queries within the required 60 working day response time. Following the receipt of the written response from Goldgroup, SEMARNAT will evaluate the application before making a decision on the permit. This form of federal regulatory response is standard procedure in the environmental permitting process in the majority of established mining jurisdictions, including Mexico.
The timing of the EIS and ETJ permit approvals is currently anticipated to be in the third quarter of 2012, however, extensions by SEMARNAT may occur. Based on initial results from the PEA, management estimates the Caballo Blanco project to require approximately nine months of construction time from the date of anticipated approval of the EIS, ETJ and related permits.
Goldgroup would like to note that it had incorrectly stated the EIS application submission date to SEMARNAT as December 16, 2011 instead of December 15, 2011, in the Company's press release dated March 19, 2012.
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
Stephanie Batory, Investor Relations
Toll Free: 1-877-655-ozAu (6928)
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