Goldgroup announces Tunnel Assays confirming drill results at Caballo Blanco
Tuesday, Jun 26, 2012VANCOUVER, June 25, 2012 /PRNewswire/ - Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX:GGA) is pleased to announce final assay results from the completed underground tunnel development at the Company's 100%-owned Caballo Blanco gold project in Veracruz, Mexico. Both the recently completed main tunnel and crosscut tunnel west of the main tunnel encountered mineralized, massive and brecciated massive silica. Assay results from the channel sampling in the main tunnel returned 24.2 metres of 1.09 g/t gold and the crosscut tunnel returned 19.35 metres of 1.48 g/t gold. The average gold grades of the mineralized zones in the tunnel correspond well with the grades of the drill holes completed in the area surrounding the tunnel, and demonstrates strong gold grade continuity through this section of the Caballo Blanco mineralized zone. These results provide confirmation of a robust resource model, further de-risking the Caballo Blanco project. A sufficient supply of mineralized material has been stockpiled from the underground tunnel development for all anticipated remaining metallurgical test work at Caballo Blanco.
About Caballo Blanco
Goldgroup owns 100% of the Caballo Blanco gold project which consists of a series of fully oxidized gold zones located in the State of Veracruz in eastern Mexico. The property consists of fourteen mineral claims covering an area of 54,732 hectares. Two large areas of epithermal gold mineralization have been discovered within the Caballo Blanco property, referred to as the Northern Zone, where the La Paila Zone is situated, and the Highway Zone. Both zones are prominent high-sulphidation, epithermal gold prospects that occur within extensive areas of clay and silica alteration. The gold is fine and occurs within a vuggy and brecciated silica alteration of an original andesite host rock in the upper levels of the surrounding epithermal system.
The principal known gold zone at Caballo Blanco is the La Paila Zone, which is located on the northern portion of a large 'magnetic high' ring structure that measures approximately three kilometres in diameter. At least four other large induced polarization (IP) resistivity high anomalies occur in the Northern Zone, with similar silica alteration to La Paila, are identified along the inner flanks of this magnetic feature.
As estimated in the Caballo Blanco Technical Report of February 7, 2012, current mineral resources at the La Paila Zone consist of 575,000 ounces of gold in the indicated category (28,890,000t at a grade of 0.62g/t Au) and 419,000 ounces in the inferred category (24,020,000t at a grade of 0.54g/t Au).
Goldgroup filed the Preliminary Economic Assessment ("PEA") for the Caballo Blanco on May 10, 2012. Based on the PEA, the Caballo Blanco project is expected to generate a 66.4% pre-tax internal rate of return ("IRR") and a US$283.8 million pre-tax net present value ("NPV") at a 5% discount rate, over an approximate 7.5-year mine life and produce 687,000 ounces of gold and 1.3 million ounces of silver, based on the current mineable resource determined from the Whittle-pit optimization model.
Goldgroup has recently submitted responses to the list of comments received on March 13, 2012 from the Secretaría de Medio Ambiente y Recurso Naturales ("SEMARNAT"), also known as the Ministry of Environmental and Natural Resources, regarding its previously submitted Environmental Impact Statement ("EIS"). Following the receipt of this written response from Goldgroup, SEMARNAT will further evaluate the comments. This form of federal regulatory response is standard procedure in the environmental permitting process.
SOURCE Goldgroup Mining Inc.