(TheNewswire)
Vancouver, British Columbia (April11, 2024), TheNewswire, Goldgroup Mining Inc. (“ Goldgroup ” or the “ Company ”) (TSXV:GGA, OTC:GGAZF,) is pleased to provide anupdate to mining operations at its 100%-owned Cerro Prieto open-pit,heap leach gold mine located in Sonora, Mexico.
CERRO PRIETO MINE
The Cerro Prieto Mine is an open pit heap leach gold mine located inSonora, Mexico. Goldgroup commenced mining operations at CerroPrieto in 2013 based upon a measured and indicated resource of8,220,000 metric tonnes of 0.81 g/t Au, 17.22 g/t Ag, 0.21% Pb and0.54% Zn, published in a 2013 technical report. These resources havebeen fully exploited as of mid-2023 whereafter, the Company minedadditional mineralization identified during subsequent exploration butnot yet included in a published resource calculation (under NI43-101). From the start of mining operations in 2013 to-date, CerroPrieto has produced 117,033 ounces of gold. Ongoing miningoperations continue to produce approximately 1,000 – 1,200 ounces ofgold monthly.
Mining was focused within the El Centro, Union and South Pit zones(see Image 1) along a mineralized structurally controlled shear zone,the “Cerro Prieto Shear” over a strike length of approximately1,600 meters. A fourth zone, Puma, offset from the Cerro Prieto Shearwas discovered and drilled in 2019 to 2023 and mined since 2020 to2023. See Figure 1 for zone locations.
The published and now exploited 2013 resources and new mineralizedzones referred to below, were/are located within or near the CerroPrieto Shear, a major north trending, near vertical shear zone up to65 meters wide, that contains a series of major veins near the edgesof the zone, secondary veins, stringers zones, breccia zones andsilicification which, with the veins, forms a mineralized system from15 to 65 meters thick.
Figure 1.- Cerro Prieto Location of Mining and Exploration Zones
Cumbre – Esperanzas Zones 2023 ExplorationDrilling
Highlights of some significant drill hole intersections,
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DDH CP362
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19.70 meters @ 1.03 g/t Goldand,
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5.5 meters @ 0.75 g/t Gold
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20.98 meters @ 1.02 g/t Gold
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DDH CP374
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13.20 meters @ 2.05 g/t Goldand,
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4.50 meters @ 1.16 g/t Goldand,
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1.55 meters @4.78 g/t Gold
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DDH CP367
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24.96 meters @ 0.69 g/t Gold and,
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7.70 meters @1.35 g/t Goldand,
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17.97 meters @ 1.13 g/t Goldand,
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11.80 meters @ 0.61 g/t Gold
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Diamond Drilling sample fire assay analytical results for gold andsilver for 23 holes drilled on the Cumbre and Esperanza are shown inTable I below. Drill hole location and orientation are shown inTable 2 and Figure 2 below.
Quality Assurance / Quality Control (QA/QC)
An industry standard Quality Assurance/ Quality Control (QA/QC)program was followed by the Company for all drilling samples with 41sample duplicates, standards and blanks inserted into the samplestream of 268 drill hole samples, all of which were analyzed by ALSChemex , located in Hermosillo, Mexico, a certified independentlaboratory.
Table 1 – Assay Results Cumbre & Esperanza
Table 1 – Assay Results Cumbre & Esperanza,cont.
Table 2.- ESPERANZASDRILL HOLE INFORMATION
The Company has internally modeled an open pit shell containing theidentified mineralization and has chosen to advance these two zonesinto production. Mine ramp preparation and waste stripping wascompleted during January and February 2024 and production blasting andmining of mineralized material commenced at the end of February 2024. See Image 2 below.
The Company cautions that it has chosen to advance theCumbre and Esperanza zones into production without the benefit ofcompleting a feasibility study demonstrating economic and technicalviability or, an independent technical report confirming resources orreserves. Accordingly, readers should be cautioned thatGoldgroup’s production decision has
been made without a comprehensivefeasibility study of established reserves or resources such that thereis greater risk and increased uncertainty as to future economicresults from the Cerro Prieto Mine and a higher technical risk offailure than would be the case if a feasibility study were completedand relied upon to make a production decision.
Metallurgy
Metallurgical testing as presented in the 2013 published technicalreport, section 6.2 Metallurgy, showed varying recoveries up to 77%from samples of four zones within Centro, Union and South pits of thenow fully exploited 2013 published resource.
Historic gold recoveries obtained since 2015 aredisplayed in graph form below. Starting in 2021 the mine experiencedongoing difficulties in maintaining consistent crushing operationsresulting in Run Of Mine (“ROM”) mineralization being deposited toleach pads. ROM deposition increased in 2022 to as high as 47% oftotal mineralization deposited to the leach pads. This ROMdeposition to leach pad resulted in an expected, significant decreasein gold recoveries as demonstrated below.
The Company has recently brought back into full serviceits 2,500 tonnes /day crushing circuit using a primary jaw crusherwith secondary and tertiary cone crushers crushing to final size of5/8in which the Company anticipates will allow improved recoveries tothe traditional 60% range.
Planned Production Expansion
The Company is seeking to arrange funding to purchase a second fullcrushing circuit and expand irrigation of leaching pads to double mineproduction to the 4,500 – 5,000 tonnes per day and if successful,expects to double is current gold production from that stated above.
Craig Gibson, Ph.D., CPG is the qualified person under NI 43-101 whohas reviewed and approved the technical disclosure contained in thisnews release.
Technical Report Update In Progress
Goldgroup has retained an independent Qualified Person that ispreparing an updated comprehensive technical report for the CerroPrieto Mine. Completion and publication of this report is expectednear end of June 2024.
About Goldgroup
Goldgroup is a Canadian-based mining Company that owns and operatesthe Cerro Prieto heap-leach gold mine located in the State of Sonora,Mexico and is led by a team of successful and seasoned individualswith extensive expertise in mine development, corporate finance, andexploration in Mexico.
For further information on Goldgroup, pleasevisit www.goldgroupmining.com
On behalf of the Boardof Directors,
Ralph Shearing, CEO
InvestorRelations
Toll Free:1-877-655-ozAu (6928)
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CAUTIONARY NOTE REGARDINGFORWARD-LOOKING INFORMATION
Certain information contained inthis news release, including any information relating to futurefinancial or operating performance, may be considered“forward-looking information” (within the meaning of applicableCanadian securities law) and “forward-looking statements” (withinthe meaning of the United States Private Securities Litigation ReformAct of 1995). These statements relate to analyses and otherinformation that are based on forecasts of future results, estimatesof amounts not yet determinable and assumptions of management. Actualresults could differ materially from the conclusions, forecasts andprojections contained in such forward-looking information.
These forward-looking statementsreflect Goldgroup’s current internal projections, expectations orbeliefs and are based on information currently available to Goldgroup.In some cases forward-looking information can be identified byterminology such as “may”, “will”, “should”, “expect”,“intend”, “plan”, “anticipate”, “believe”,“estimate”, “projects”, “potential”, “scheduled”,“forecast”, “budget” or the negative of those terms or othercomparable terminology.
Forward-looking information issubject to a variety of known and unknown risks, uncertainties andother factors that could cause actual events or results to materiallydiffer from those reflected in the forward-looking information, andare developed based on assumptions about such risks, uncertainties andother factors including, without limitation: receipt of all requiredstock exchange and regulatory approvals, the continued listing andtrading of the Company’s common shares; uncertainties related toactual capital costs operating costs and expenditures; productionschedules and economic returns from Goldgroup’s projects;uncertainties associated with development activities; uncertain timingfor receipt of an updated technical report; uncertainties inherent inthe estimation of mineral resources and precious metal recoveries;uncertainties related to current global economic conditions;fluctuations in precious and base metal prices; uncertainties relatedto the availability of future financing; potential difficulties withjoint venture partners; risks that Goldgroup’s title to its propertycould be challenged; political and country risk; risks associated withGoldgroup being subject to government regulation; risks associatedwith surface rights; environmental risks; Goldgroup’s need toattract and retain qualified personnel; risks associated withpotential conflicts of interest; Goldgroup’s lack of experience inoverseeing the construction of a mining project; risks related to theintegration of businesses and assets acquired by Goldgroup;uncertainties related to the competitiveness of the mining industry;risk associated with theft; risk of water shortages and risksassociated with competition for water; uninsured risks and inadequateinsurance coverage; risks associated with potential legal proceedings;risks associated with community relations; outside contractor risks;risks related to archaeological sites; foreign currency risks; risksassociated with security and human rights; and risks related to theneed for reclamation activities on Goldgroup’s properties, as wellas the risk factors disclosed in Goldgroup’s Annual Information Formand MD&A and other public disclosure by Goldgroup. Any and all ofthe forward-looking information contained in this news release isqualified by these cautionary statements.
Although Goldgroup believes that theforward-looking information contained in this news release is based onreasonable assumptions, readers cannot be assured that actual resultswill be consistent with such statements. Accordingly, readers arecautioned against placing undue reliance on forward-lookinginformation. Goldgroup expressly disclaims any intention or obligation to update or revise anyforward-looking information, whether as a result of new information,events or otherwise, except as may be required by, and in accordancewith, applicable securities laws.
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