Goldgroup Cuts Additional 100-Plus
Metre Intercepts of Oxide Gold at Caballo Blanco, Mexico
DDH 11 CBN 79:
100.10 m @ 0.88 g/t Au
DDH 11 CBN 82: 154.00 m @ 0.59 g/t Au
Other Higher-Grade Intercepts Include:
DDH 11 CBN 84: 64.00 m @ 1.20 g/t Au
Vancouver, British Columbia (May 25, 2011) - Goldgroup Mining
Inc. ("Goldgroup" or the "Company") is pleased to
announce that additional diamond drill holes at its Caballo Blanco gold
project in Veracruz, Mexico have yielded significant gold intercepts,
extending the La Paila oxide gold zone to the west and southwest. All
the drill holes reported below (see Tables 1 and 2) are exploration
holes. Drilling remains ongoing to define and to delimit the eastern
and southwestern flanks of the La Paila gold zone as the zone currently
remains open in these two directions.
Keith Piggott, President and CEO of Goldgroup, stated: "These
diamond drill results yielded gold intercepts contained in completely
oxidized rock occurring inside and peripheral to the existing La Paila
zone. They are similar in grade to the current NI 43-101 estimated
mineral resource and give better definition to allow the design of the
first open pit. The current drilling program, together with the
on-going column-leach metallurgical testing, environmental and
sociological studies as well as the heap-leach pad design form the
basis for targeting to bring Caballo Blanco into production in
2012."
Table 1. Drill-Hole Results for the Caballo Blanco Project,
Mexico
DIAMOND DRILLING -
LA PAILA ZONE
|
Diamond Drill Hole
|
Mineralization
|
From (m)
|
To (m)
|
Interval (m)
|
Au grade (g/t)
|
11 CBN 75
|
98.00
|
102.00
|
4.00
|
0.66
|
and
|
134.00
|
180.00
|
46.00
|
0.35
|
11 CBN 76
|
81.10
|
85.10
|
4.00
|
0.98
|
and
|
106.14
|
121.50
|
15.36
|
0.37
|
and
|
131.50
|
156.21
|
24.71
|
0.22
|
and
|
164.21
|
177.45
|
13.24
|
0.28
|
and
|
191.89
|
209.89
|
18.00
|
0.25
|
and
|
284.50
|
289.50
|
5.00
|
0.34
|
11 CBN 77
|
98.00
|
106.00
|
8.00
|
0.70
|
and
|
120.00
|
138.00
|
18.00
|
0.40
|
and
|
152.00
|
174.00
|
22.00
|
1.39
|
11 CBN 77 cont.
|
198.00
|
224.00
|
26.00
|
0.30
|
and
|
232.00
|
256.00
|
24.00
|
0.41
|
11 CBN 79
|
47.40
|
147.50
|
100.10
|
0.88
|
11 CBN 80
|
93.40
|
153.40
|
60.00
|
0.76
|
11 CBN 82
|
81.50
|
235.50
|
154.00
|
0.59
|
and
|
247.50
|
263.50
|
16.00
|
0.23
|
and
|
293.50
|
303.50
|
10.00
|
0.48
|
11 CBN 83
|
98.50
|
146.50
|
48.00
|
0.90
|
and
|
194.50
|
216.50
|
22.00
|
0.41
|
and
|
240.50
|
248.50
|
8.00
|
0.21
|
11 CBN 84
|
86.84
|
150.84
|
64.00
|
1.20
|
and
|
278.40
|
291.10
|
12.70
|
0.32
|
11 CBN 85
|
63.33
|
73.33
|
10.00
|
1.33
|
and
|
92.96
|
160.02
|
67.06
|
0.35
|
11 CBN 86
|
102.36
|
107.93
|
5.57
|
0.53
|
and
|
133.93
|
140.10
|
6.17
|
0.46
|
For a drill hole
location map, click here.
A high percentage of the holes presented above that intersected gold
mineralization are in excess of the 0.2 g/t Au cut-off grade used in
estimating the inferred mineral resource presented in the current
Caballo Blanco NI 43-101 technical report, as amended February 28,
2011, and available on SEDAR. These results are part of the current
drill program and are intended to be used in the preparation of an
updated mineral resource estimate. A complete summary of the assay
results from diamond drill holes 10 CBN 54 to 11 CBN 86 as well as a
drill-hole location map of the La Paila zone detailing the relative
locations of the drill holes used in estimating the current NI 43-101
mineral resource, will be posted on the Company's website under
"Projects - Caballo Blanco" at www.goldgroupmining.com.
Table 2. Drill
Hole Data, Caballo Blanco Project, Mexico
DD Hole Number
|
East UTM Coord
(metres)
|
North UTM Coord
(metres)
|
Elevation
(m.a.s.l)
|
Azimuth
(degrees)
|
Plunge
(degrees)
|
Total Length
(metres)
|
11 CBN 75
|
768338
|
2184494
|
484
|
090
|
-45
|
234
|
11 CBN 76
|
768339
|
2184546
|
480
|
090
|
-45
|
364.5
|
11 CBN 77
|
768156
|
2184153
|
479
|
090
|
-70
|
301.5
|
11 CBN 79
|
768213
|
2184211
|
472
|
na
|
-90
|
202.5
|
11 CBN 80
|
768306
|
2184251
|
513
|
090
|
-75
|
315.3
|
11 CBN 82
|
768307
|
2184251
|
513
|
090
|
-50
|
335
|
11 CBN 83
|
768199
|
2184152
|
495
|
090
|
-70
|
310.5
|
11 CBN 84
|
768235
|
2184250
|
505
|
na
|
-90
|
314.5
|
11 CBN 85
|
768337
|
2183886
|
502
|
na
|
-90
|
220.6
|
11 CBN 86
|
768154
|
2184104
|
487
|
270
|
-70
|
253.5
|
m.a.s.l = metres
above sea level; Coord = Coordinate; na = not applicable
About Caballo Blanco
Goldgroup owns a 70% interest in Caballo Blanco. The remaining 30%
interest is owned by Almaden Minerals Ltd. The Caballo Blanco project
consists of a series of oxide gold zones located in the Veracruz
province of eastern Mexico. The principal gold zone at Caballo Blanco
is the La Paila prospect located within a cluster of high-sulphidation
epithermal gold deposits referred to as the Northern Zone. The current
estimated mineral resource for La Paila 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.
This estimate was compiled from 32 diamond drill holes totaling
approximately 7,000 metres completed by NGEx Resources Inc. prior to
Goldgroup's acquisition of its interest in the project from NGEx in
November, 2009. Other known gold zones at Caballo Blanco occur
approximately 7 km to the southeast at the Highway Zone. These gold
zones have yet to be drill tested.
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
Inspectorate America Corp. ("Inspectorate") and transported
to their preparation facility at Durango, Mexico where they were dried
and crushed to -150 mesh. The rejects remained with Inspectorate while
the pulps were air couriered to Inspectorate's Richmond, BC, Canada
facility and analyzed for gold by fire assay with Atomic Absorption
("AA") finish. In addition, a 30 element Inductively Coupled
Plasma ("ICP") analysis (aqua regia digest) 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 15 samples sent the laboratory.
This news release has been prepared under the supervision of Mr. Kevin
Sullivan, B.Sc. MAusIMM, and the Company's Vice President of
Exploration who serves as the qualified person as defined by National
Instrument 43-101 responsible for ensuring that the scientific and
technical information in this release is accurate.
About Goldgroup
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 Jos� 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
or contact:
Keith Piggott, President & CEO
T: 604-682-1943
David Fry, Corporate Development
Toll Free: 1-877-655-ozAu (6928)
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain information contained in this news release, including
any information relating to future financial or operating performance
may be deemed "forward-looking". All statements in this news
release, other than statements of historical fact, that address events
or developments that Goldgroup expects to occur, are
"forward-looking information". These statements relate to
future events or future performance and reflect Goldgroup's
expectations regarding the future growth, results of operations,
business prospects and opportunities of Goldgroup. These
forward-looking statements reflect Goldgroup's current internal
projections, expectations or beliefs and are based on information currently
available to Goldgroup. In some cases forward-looking information can
be identified by terminology such as "may", "will",
"should", "expect", "intend",
"plan", "anticipate", "believe",
"estimate", "projects", "potential",
"scheduled", "forecast", "budget" or the
negative of those terms or other comparable terminology. Certain
assumptions have been made regarding the Company's plans at the Caballo
Blanco property. Many of these assumptions are based on factors and
events that are not within the control of Goldgroup and there is no
assurance they will prove to be correct. Forward-looking statements are
subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to materially
differ from those reflected in the forward-looking statements, and are
developed based on assumptions about such risks, uncertainties and
other factors including, without limitation: fluctuations in precious
and base metal prices; inherent hazards and risks associated with
mining operations; inherent uncertainties associated with mineral
exploration and development activities; uncertainties inherent in the
estimation of mineral reserves and/or resources and precious metal
recoveries; uncertainties related to actual capital costs, operating
costs and expenditures, production schedules and economic returns from
Goldgroup's projects; uncertainties related to current global financial
conditions; uncertainties related to the availability of future
financing necessary to undertake exploration, development, mining and
processing activities on Goldgroup's properties; Goldgroup's
substantial reliance on its Cerro Colorado Mine for revenues; risks
related to the planned expansion of the Cerro Colorado Mine; risks
related to the continued operation and planned expansion of the Cerro
Colorado Mine without a current economic analysis; risks related to the
integration of businesses and assets acquired by Goldgroup;
uncertainties related to the competitiveness of the mining industry;
risks associated with Goldgroup being subject to government regulation,
including changes in law and regulation and risks associated with
Goldgroup's need for governmental licenses and permits; risks
associated with Goldgroup being subject to extensive environmental laws
and regulations, including a change in regulation; risks that
Goldgroup's title to its property could be challenged; political and
country risk; risk of water shortages and risks associated with
competition for water; Goldgroup's need to attract and retain qualified
personnel; increases in off-site transportation and concentrate
processing costs; risks related to the need for reclamation activities
on Goldgroup's properties, including the nature of reclamation required
and uncertainty of costs estimates related thereto; risks associated
with potential conflicts of interest; risks associated with potential
labour disputes; and risks associated with potential blockades of
mining operations as well as "Risks and Uncertainties"
included in the Annual Information Form and MD&A for Goldgroup
available at www.sedar.com. Forward-looking information is not a guarantee of future
performance and actual results and future events could differ
materially from those discussed in the forward-looking information. All
of the forward-looking information contained in this news release is
qualified by these cautionary statements. Although Goldgroup believes
that the forward-looking information contained in this news release are
based on reasonable assumptions, readers cannot be assured that actual
results will be consistent with such statements. Accordingly, readers
are cautioned against placing undue reliance on forward-looking
information. Goldgroup expressly disclaims any intention or obligation
to update or revise any forward-looking information, whether as a
result of new information, events or otherwise, except in accordance
with applicable securities laws.
The potential quantities and grades disclosed herein are conceptual in
nature and there has been insufficient drilling and exploration to
define a mineral resource. It is uncertain if further drilling and
exploration will result in the target being delineated as a mineral
resource. The true widths of the intercepts disclosed in this news
release are unknown at this time.
Associated File: http://www.goldgroupmining.com/i/pdf/nr/2011-05-25_NR.pdf
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