Goldgroup responds to Mexican newspaper articles
VANCOUVER, Feb. 28, 2012 /CNW/ – Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX: GGA) is responding to recent unconfirmed Mexican newspaper articles quoting certain statements by the Governor of the State of Veracruz on the environmental permitting regarding Goldgroup's Caballo Blanco project. Goldgroup has not been directly contacted by, or been in communication with, any State officials in relation to the statements recently reported.
As observed by the Governor of the State of Veracruz in the aforementioned newspaper articles, mining operating permits are a matter under the jurisdiction of the Federal Government of Mexico. Goldgroup filed its environmental impact statement with the Federal Government of Mexico in December 2011 and continues to work with all government authorities to advance the permitting process.
Keith Piggott, President and CEO of Goldgroup, stated, "We agree with the reported comment by the Governor of the State of Veracruz that our project should be designed with the welfare of all stakeholders in mind. The Federal Government has not denied our mining operating permit and we continue to work closely with all stakeholders of the Caballo Blanco project to create a sustainable mining operation for all parties involved. Our current work program at Caballo Blanco is being conducted under already issued Federal permits and is not affected by the current permitting process. We will continue to be in discussions with, and take into consideration the views of, both the Federal and State Governments in Mexico to continue to move our mining project forward."
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 current Caballo Blanco property, referred to as the Northern Zone and Highway Zone. Both 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 located within the Northern Zone, a cluster of high-sulphidation epithermal alteration zones. The La Paila Zone 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 IP resistivity high anomalies occurring here, with similar silica alteration to La Paila, are identified along the inner flanks of this magnetic feature.
To date, 142 holes have been drilled at the Caballo Blanco project by Goldgroup. Of these holes, 19 were reverse circulation holes, seven were holes drilled outside the La Paila Zone within the Northern Zone, and four were unassayed as of the date of the NI 43-101 Technical Report released February 16, 2012, resulting in a total of 112 holes incorporated into the updated NI 43-101 mineral resource estimate.
Goldgroup has now received assays for the remaining four drill holes from its 2011 drill program, which will be included with 2012 drilling results in a future updated NI 43-101 mineral resource estimate.
Goldgroup is a well-funded Canadian-based gold production, development, and exploration Company with significant upside in a portfolio of projects in Mexico, including its flagship 100%-owned advanced stage gold development project Caballo Blanco in the state of Veracruz, and the 50%-owned high grade gold exploration project San José de Gracia in the state of Sinaloa. The Company also operates its 100%-owned Cerro Colorado gold mine in the state of Sonora.
Goldgroup remains in a flexible financial position with a strong cash balance, no debt and no gold hedging. The Company is led by a team of highly successful and seasoned individuals with extensive expertise in mine development, corporate finance, and exploration in Mexico. Goldgroup's mission is to increase gold production, mineral resources, profitability and cash flow, building a leading gold producer in Mexico.