The Cerro Prieto Project, located in the Cucurpe Mining District, Sonora, Mexico, is comprised of the San Felix (205 ha), San Francisco (10 ha), Elba (5.82 ha), Huerta de Oro (20 ha), Reyna de Plata (9.79 ha), Cerro Prieto "North" (2,508 ha) and Argonauta 6 (4,120 ha) mineral concessions. The Cerro Prieto Project is 52 road kilometers from the regional center of Magdalena de Kino and 150 kilometers northeast of the city of Hermosillo. Goldgroup began small-scale trial mining and leaching in December 2013 and is working to ramp-up mining operations to commercial production rates.
An updated National Instrument 43-101 Measured and Indicated and Inferred mineral resource estimate for the Cerro Prieto Project was prepared in the first half of 2013.
Mineral Resource Estimate Highlights:
- Measured Mineral Resources in veins (Table 1) comprised of 1.18 million tonnes grading 1.56 grams per tonne (g/t) gold, 30.28 g/t silver, 0.15% lead and 0.33% zinc for a total of approximately 59,000 ounces of gold
- Indicated Mineral Resources in veins (Table 2) comprised of 4.92 million tonnes grading 1.03 g/t gold, 22.12 g/t silver, 0.32% lead and 0.80% zinc for a total of approximately 163,000 ounces of gold
- Inferred Mineral Resources in veins (Table 3) comprised of 5.025 million tonnes grading 0.75 g/t gold, 20.62 silver, 0.49% lead and 1.28% zinc for a total of approximately 121,000 ounces of gold
- Cerro Prieto remains open to the south of the existing resource along the 7.5 kilometer extension of the mineralized shear zone
- Preliminary column leach test work completed by Kappes Cassidy & Associates, under the direction of Arthur H. Winckers and Associates, a consultant for the Company, at the Project returned gold recoveries of between 47% to 68% with head grades ranging from 0.79 g/t to 0.95 g/t gold over 98 days.
The Mineral Resource estimate for the Cerro Prieto Project was prepared by G.H. Giroux, P.Eng., MASc. and Dr. Duncan J. Bain, P.Geo. who are independent "Qualified Persons" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. The technical report title Report on the 2011-2012 Exploration Program Including an Updated Resource Estimation on the Cerro Prieto Project, Magdelena De Kino Area, Sonora State, Mexico" and dated June 10, 2013 is available for viewing on SEDAR (www.sedar.com)