(TheNewswire)
Vancouver, British Columbia April 17,2024 – TheNewswire – Goldgroup Mining Inc. (“ Goldgroup ” or the “ Company ”) (TSXV:GGA, OTC:GGAZF) is pleased to provide anupdate to recently completed surface exploration at its 100%-ownedCerro 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. From the start of mining operations in 2013 to date,Cerro Prieto has produced 117,033 ounces of gold. Ongoing miningoperations continue to produce approximately 1,000 – 1,200 ounces ofgold monthly.
Mined zones and more recently discovered mineralization, shown in Fig.1 below, are located within or near the Cerro Prieto Shear, a majornorth trending, near vertical shear zone up to 65 metres in width. The shear zone contains a series of major veins near its margins,along with secondary veins and zones of stringers, breccias andsilicification which, with the veins, forms a mineralized system from15 to 65 meters thick. Recent exploration has resulted in thediscovery of significant mineralization in several new zones along thetrend of the Cerro Prieto Shear, both north and south of the existingmine.
FIGURE 1. Areas of past and current production along with areas ofrecent exploration.
CERRO PRIETO EXPLORATION
Nueva Esperanza Zone Drilling
The Company has drill tested the Nueva Esperanza zone (see Image 1below) immediately north and contiguous to the Esperanza zonecurrently being mined, (see Image 1& 2 below). Seventeenpreliminary drill holes tested this zone at a 25-metre line spacing.Significant mineralization was encountered across appreciable widthsin nine of the drill holes with assay result as shown in Table 1below. Drill hole location and orientation are presented in Figure 2.
IMAGE 1. Reyna zone, looking North.
FIGURE 2. Drill hole locations for the Nueva Esperanzarea
IMAGE 2 . Looking north to Esperanza zone currently being mined – NuevaEsperanza & Reyna zones behind hill on left side.
TABLE 1. Nueva Esperanza drilling results.
TABLE 2. Nueva Esperanza drill hole data.
Reyna Zone – Surface Trench Sampling
The Reyna Zone is contiguous to and immediately north of the NuevaEsperanza zone referred to above, (see Figure 1 for location). Surface trenching has exposed this zone over 90 meters as seen inImage 3 below , and chip sampling assay results returned significantgold values as shown in Figure 3 below. This zone along with NuevaEsperanza requires additional exploration drilling to determine ifcontained mineralization will be able to meet minimum tonnage andcut-off grades to allow future mining; however, based upon geology,initial drilling and trenching results achieved to date, along withtheir location immediately along strike to the north of the EsperanzaZone, management is confident these two zones will provide future minefeed.
IMAGE 3. Trenching at the Reyna zone, looking North.
FIGURE 3. Trench sample results for the Reyna zone
Recent Surface Exploration Identifies New MineralizedZones
Cata, Coati & Cascabel Zones
Recent surface exploration up to 1.7 km south of the mine’s heapleach pads has identified the potential extension of the Cerro PrietoShear at the Cata and Coati Zones, along with the Cascabel Zone, aparallel mineralized structure. Chip and grab sample analyticalresults for these surface samples assayed at the Cerro Prieto mine labare presented in Fig. 4 and Table 3 below. Note that exploration surface samples fromthese three zones as well as the Reyna zone referred to above, havenot been verified by an independent laboratory and the reader iscautioned that Company’s mine lab has not been certified andtherefore results could be different for assays obtained at anindependent certified lab. The Company however, notes thatdrill hole assay results obtained and reported on its most recentpress release were assayed at both the mine lab and independent ALSChemex , located in Hermosillo, Mexico and results obtained weresimilar, within expected tolerance. The Company intends to sendfuture samples taken during planned trenching and drilling forindependent lab analysis and at that time will implement an industrystandard quality assurance quality control program for these targetedexploration zones.
FIGURE 4. Recent surface exploration at the Cata, Coati and Cascabelzones.
Table 3. Highlights of recent surfacechip sampling at the Cata. Coati, and Cascabel areas.
Quality Assurance / Quality Control (QA/QC)
An industry standard Quality Assurance/ Quality Control (QA/QC)program was followed by the Company for all seventeen Nueva Esperanzadrill hole samples with sample duplicates, standards and blanksinserted into the sample stream of all drill hole samples, all ofwhich were analyzed by ALS Chemex , located in Hermosillo, Mexico, acertified independent laboratory.
Control samples were also included for samples analyzed at the CerroPrieto analytical laboratory, but the facility is not certified, andresults are used as a guide for exploration and should not be reliedupon. Samples will be sent to an independent certified laboratory toconfirm the results.
Craig Gibson, Ph.D., CPG is the qualified person under NI 43-101 whohas reviewed and approved the technical disclosure contained in thisnews release.
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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This press release shall notconstitute an offer to sell or the solicitation of an offer to buy,nor shall there be any sale of these securities in any jurisdiction inwhich such offer, solicitation or sale would be unlawful prior toregistration or qualification under the securities laws of any suchjurisdiction. Such securities have not been, and will not be, registered under theUnited States Securities Act of 1933, as amended (the “U.S.Securities Act”), or any state securities laws, and, accordingly,may not be offered or sold within the United States, or to or for theaccount or benefit of persons in the United States or “U.S.Persons”, as such term is defined in Regulation S promulgated underthe U.S. Securities Act, unless registered under the U.S. SecuritiesAct and applicable state securities laws or pursuant to an exemptionfrom such registration requirements .
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.
The Company cautions that it choseto advance the Cerro Prieto Mine zones into production without thebenefit of completing a feasibility study demonstrating economic andtechnical viability or, an independent technical report confirmingresources or reserves. Accordingly, readers should be cautioned thatGoldgroup’s production decisions has been and are being made withouta comprehensive feasibility study of established reserves or resourcessuch that there is greater risk and increased uncertainty as to futureeconomic results from the Cerro Prieto Mine and a higher technicalrisk of failure than would bethe case if a feasibility study were completed and relied upon to makea production decision.
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; uncertaintiesinherent in the estimation of mineral resources and precious metalrecoveries; uncertainties related to current global economicconditions; fluctuations in precious and base metal prices;uncertainties related to the availability of future financing;potential difficulties with joint venture partners; risks thatGoldgroup’s title to its property could be challenged; political andcountry risk; risks associated with Goldgroup being subject togovernment regulation; risks associated with surface rights;environmental risks; Goldgroup’s need to attract and retainqualified personnel; risks associated with potential conflicts ofinterest; Goldgroup’s lack of experience in overseeing theconstruction of a mining project; risks related to the integration ofbusinesses and assets acquired by Goldgroup; uncertainties related tothe competitiveness of the mining industry; risk associated withtheft; risk of water shortages and risks associated with competitionfor water; uninsured risks and inadequate insurance coverage; risksassociated with potential legal proceedings; risks associated withcommunity relations; outside contractor risks; risks related toarchaeological sites; foreign currency risks; risks associated withsecurity and human rights; and risks related to the need forreclamation activities on Goldgroup’s properties, as well as therisk factors disclosed in Goldgroup’s Annual Information Form andMD&A and other public disclosure by Goldgroup. Any and all of theforward-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 obligationto update or revise any forward-looking information, whether as aresult of new information, events or otherwise, except as may berequired by, and in accordance with, applicable securitieslaws.
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