VANCOUVER, March 2, 2016 /CNW/ - Goldgroup Mining Inc.
("Goldgroup" or the "Company") (TSX:GGA, OTC:GGAZF, BMV
SIX:GGAN.MX) would like to provide a corporate update to three
recent developments: (i) Credipresto SAPI de CV SOFOM ENR
("Credipresto") Facility Amendment, (ii) Letter of Intent ("LOI")
with Aptus Resources LLC ("Aptus"), and (iii) Cerro Prieto Project
Update.
i) Credipresto
Facility Amendment (see press release of December 23, 2015)
The amendment to the Company's outstanding credit facility with
Credipresto announced in a press release on December 23, 2015 has now closed.
ii) Aptus LOI (see
press release of January 26,
2016)
The Company has not entered into a definitive agreement with
Aptus pursuant to the LOI, and therefore the LOI has now
expired.
iii) Cerro Prieto Update
Cerro Prieto commenced
small-scale trial mining and leaching in December 2013 and until commercial production is
achieved, all costs and revenues are capitalized to the mineral
property. During the year ended December 31,
2015, Cerro Prieto produced
approximately 9,151 ounces of gold.
GOLD OZ
2015
|
Jan.
|
Feb.
|
Mar.
|
Apr.
|
May
|
June
|
July
|
Aug.
|
Sept.
|
Oct.
|
Nov.
|
Dec.
|
PRODUCED
|
541
|
581
|
512
|
492
|
444
|
846
|
818
|
1,095
|
921
|
1,050
|
784
|
1,067
|
SOLD
|
280
|
642
|
677
|
416
|
378
|
805
|
870
|
961
|
922
|
1,254
|
715
|
887
|
The operation has now completed its recent expansion by
installing new screening and conveyor stacking onto its new leach
pad. This together with finer crushing and better solution control
should allow Cerro Prieto to
achieve its commercial production rate of 1,500 oz of gold per
month plus approximately 5% silver credit.
Cerro Prieto is an operation
that was historically worked underground over 100 years ago. It
contained many old stope openings and hence detailed ore definition
was difficult to achieve by drilling alone. Goldgroup opened
up the mine with a number of open cut faces to better determine
resources and characteristics. It has been in trial operation
for the last two years with detailed mine planning as the
mineralized zones were opened up and better defined, metallurgy
utilizing fine crushing and agglomeration was optimized and the
leaching parameters were determined in trial operations.
Annual Production
2014:
|
4,890 oz
gold
|
Annual Production
2015:
|
9,151 oz
gold
|
This trial phase is now complete and the Company is pleased with
the results.
Expected Annual
Production 2016:
|
approx. 15,000 oz
gold
|
Production costs based on recent operations indicate a
sustaining cost less than US$900 /oz
gold for 2016.
Now that the mine is in sustainable operation, additional
resources within the same mineralized zone are being investigated
to extend mine life beyond the programmed 4 years. Goldgroup
believes that additional resources outside the current mining zone
but within the Cerro Prieto
concessions also show promise.
Keith Piggott, Chairman,
President and CEO of Goldgroup commented: "The Company has
continued its effort to bring better efficiency into Cerro Prieto to allow profitability at lower
metal prices. Our key focus for 2016 is to continue to ramp up gold
production and lower crushing and mining costs. With the recent
closing of the Credipresto credit facility amendment and improved
metal prices, the Company will continue to seek opportunities to
improve its financial position."
The Company wishes to make clear that it is not basing its
production decision on a preliminary economic assessment
demonstrating the potential viability of mineral resources or a
feasibility study of mineral reserves demonstrating economic and
technical viability, and as a result there is increased uncertainty
and there are multiple technical and economic risks of failure
which are associated with this production decision. These risks,
among others, include areas that are analyzed in more detail in a
Preliminary Economic Assessment ("PEA") or Feasibility Study, such
as applying economic analysis to resources or reserves, more
detailed metallurgy, a number of various specialized studies.
Scientific and technical information relating to Cerro Prieto presented above has been approved
by Rodney A. Blakestad, J.D.,
C.P.G., who by reason of education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work
experience, fulfills the requirements of a Qualified Person as
defined in NI 43-101, and he is Independent of the issuer applying
all of the tests in Section 1.5 of NI 43-101CP.
About Goldgroup
Goldgroup is a Canadian-based gold production, development, and
exploration Company with a significant upside in a portfolio of
projects in Mexico, including a
50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of the
high-grade gold exploration project, San José de Gracia located in the State of Sinaloa. The Company also operates
its 100%-owned Cerro Prieto
heap-leach gold mine, in the State of
Sonora.
Goldgroup 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,
with a view to building a leading gold producer in Mexico.
On behalf of the Board of Directors,
Mr. Keith
Piggott, Chairman and President
Tel:
1-520-247-5753
Investor Relations
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 (including future production and cost
estimates), may be considered "forward-looking information"
(within the meaning of applicable Canadian securities law) and
"forward-looking statements" (within the meaning of the United
States Private Securities Litigation Reform Act of 1995). These
statements relate to analyses and other information that are based
on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Actual results could
differ materially from the conclusions, forecasts and projections
contained in such forward-looking information. 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 may have been made regarding the
Company's plans at the Cerro
Prieto project. 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 information is 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 information, and are developed based on
assumptions about such risks, uncertainties and other factors
including, without limitation: uncertainties related to actual
capital costs, operating costs and expenditures, production
schedules and economic returns from Goldgroup's projects;
uncertainties associated with development activities; uncertainties
inherent in the estimation of mineral resources and precious metal
recoveries; uncertainties related to current global economic
conditions; fluctuations in precious and base metal prices;
uncertainties related to the availability of future financing;
potential difficulties with joint venture partners; risks that
Goldgroup's title to its property could be challenged; political
and country risk; risks associated with Goldgroup being subject to
government regulation; risks associated with surface rights;
environmental risks; Goldgroup's need to attract and retain
qualified personnel; risks associated with potential conflicts of
interest; Goldgroup's lack of experience in overseeing the
construction of a mining project; risks related to the integration
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 risks associated
with competition for water; uninsured risks and inadequate
insurance coverage; risks associated with potential legal
proceedings; risks associated with community relations; outside
contractor risks; risks related to archaeological sites; foreign
currency risks; risks associated with security and human rights;
and risks related to the need for reclamation activities on
Goldgroup's properties, as well as the risk factors disclosed in
Goldgroup's Annual Information Form and MD&A. Any and 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 is 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 as may be required by, and
in accordance with, applicable securities laws.
SOURCE Goldgroup Mining Inc.