2011 News Releases
June 14, 2011
13.93 g/t Gold Intercepted Over 4.75 Metres at San José de Gracia, Mexico
Vancouver, British Columbia (June 14, 2011) - Goldgroup Mining Inc. ("Goldgroup" or the "Company"), in coordination with DynaResource, Inc. ("DynaUSA"-"DYNR-OTCBB"), is pleased to announce that diamond drilling from the recent drilling program at the San José de Gracia gold project in Sinaloa, Mexico ("San José de Gracia") has encountered many intercepts of high-grade gold mineralization, including 13.93 g/t Au over 4.75 metres (Hole SJG-11-271 at Tres Amigos). Further, all other intercepts reported below are above the 2.0 g/t Au cut-off grade.
Keith Piggott, President and CEO of Goldgroup, stated: "These assay results show good correlation with prior drilling and enhance the mineralized shoots at San Pablo, Tres Amigos, Purisima, and La Union, the latter three of which are still open in various directions. A total of 21,000 metres of drilling have been completed in this latest program at San Jose de Gracia, 2,500 metres more than originally planned as the drilling has advanced more rapidly and at lower unit cost than budgeted. The drill data are being modeled and an updated NI 43-101 compliant resource estimate is expected to be completed on schedule in the third quarter of 2011."
| TRES AMIGOS VEIN | ||||
| Mineralization | ||||
| Drill Hole | From (m) |
To (m) | Interval (m) | Au grade (g/t) |
| SJG-11-262 | 41.97 | 44.42 | 2.45 | 3.17 |
| SJG-11-265 | 47.95 | 52.17 | 4.22 | 3.07 |
| SJG-11-267 | 86.76 | 87.16 | 0.40 | 5.52 |
| SJG-11-271 | 108.45 | 108.85 | 0.40 | 5.49 |
| and | 115.40 | 120.15 | 4.75 | 13.93 |
| SJG-11-278 | 66.75 | 67.40 | 0.65 | 16.34 |
| and | 117.35 | 117.85 | 0.50 | 3.55 |
| SJG-11-280 | 3.05 | 4.57 | 1.52 | 10.67 |
| and | 123.40 | 124.00 | 0.60 | 10.26 |
| LA UNION VEIN | ||||
| Mineralization | ||||
| Drill Hole | From (m) |
To (m) | Interval (m) | Au grade (g/t) |
| SJG-11-292 | 203.11 | 204.65 | 1.54 | 2.27 |
| SJG-11-298 | 49.15 | 49.85 | 0.70 | 49.39 |
| and | 52.67 | 53.95 | 1.28 | 3.02 |
| SAN PABLO VEIN | ||||
| Mineralization | ||||
| Drill Hole | From (m) |
To (m) | Interval (m) | Au grade (g/t) |
| SJG-11-263 | 119.88 | 121.13 | 1.25 | 9.47 |
| and | 131.39 | 131.79 | 0.40 | 3.87 |
| and | 134.35 | 134.75 | 0.40 | 2.73 |
| and | 144.23 | 145.02 | 0.79 | 5.06 |
| SJG-11-264 | 145.21 | 146.45 | 1.24 | 21.24 |
| SJG-11-268 | 92.65 | 94.25 | 1.60 | 11.74 |
| and | 153.00 | 153.92 | 0.92 | 3.18 |
| SJG-11-272 | 86.80 | 87.30 | 0.50 | 2.73 |
| SJG-11-279 | 126.49 | 129.00 | 2.51 | 3.48 |
| LA PURISIMA VEIN | ||||
| Mineralization | ||||
| Drill Hole | From (m) |
To (m) | Interval (m) | Au grade (g/t) |
| SJG-11-281 | 87.60 | 88.39 | 0.79 | 4.78 |
| SJG-11-282 | 27.43 | 30.48 | 3.05 | 6.21 |
| and | 74.45 | 75.36 | 0.91 | 18.87 |
| and | 89.92 | 91.44 | 1.52 | 6.03 |
| and | 108.00 | 109.67 | 1.67 | 2.86 |
| and | 152.40 | 153.92 | 1.52 | 7.79 |
| SJG-11-285 | 57.45 | 59.15 | 1.70 | 3.85 |
| and | 85.06 | 87.92 | 2.86 | 3.93 |
| and | 98.50 | 102.15 | 3.65 | 6.70 |
| SJG-11-287 | 137.35 | 138.71 | 1.36 | 4.15 |
| SJG-11-289 | 109.73 | 112.78 | 3.05 | 9.50 |
| SJG-11-293 | 38.11 | 39.27 | 1.16 | 10.06 |
| and | 158.75 | 160.55 | 1.80 | 12.65 |
The holes presented above all intersected mineralization in excess of the 2.0 g/t Au cut-off grade used in estimating the inferred mineral resource presented in the San José de Gracia NI 43-101 Technical Report based on prior drilling of 126 holes by Goldgroup to the end of 2009 together with a further 75 holes drilled prior to Goldgroup's involvement. Assay results from these latest holes represent new drilling comprised of 172 additional holes since the previous mineral resource calculation and will be used in the calculation of an anticipated updated mineral resource estimate.
A complete summary of these assay results and a map of the San José de Gracia property detailing the relative locations of the drill holes used in establishing the current NI 43-101 mineral resource estimate and this latest drill program will be posted on the Company's website under "Projects - San José de Gracia" at www.goldgroupmining.com. Note that in the normal course of drilling high-grade vein deposits, many drill holes are required to de-mark the boundaries of the mineralized shoots, with a certain number containing significant grade and others not.
The San José de Gracia District is 100%-owned by DynaResource de Mexico S.A. de C.V ("DynaMexico"). Goldgroup currently owns 50% of DynaMexico. The remaining interest in DynaMexico is owned by DynaUSA. San José de Gracia is a high-grade advanced exploration gold project hosting a NI 43-101 compliant mineral resource estimate contained in four separate veins: Tres Amigos, San Pablo, La Union area, and the La Purisima trend. Please refer to the current NI 43-101 technical report on San José de Gracia available on SEDAR.
Assaying and Qualified Person
After project geologists logged and marked the core, technicians cut the individual lengths with a diamond saw, then tagged the bags and secured them with security clips. The samples were then trucked to Hermosillo, Mexico where Inspectorate America Corp. ("Inspectorate") crushed each sample to -150 mesh. The rejects remained with Inspectorate while the pulps were air couriered to Inspectorate's Richmond, BC, Canada facility and analyzed for gold by fire assay with Atomic Absorption ("AA") finish. Samples over 1.0 grams per tonne gold were re-run using fire assay with gravity finish. In addition, a 30 element Inductively Coupled Plasma ("ICP") analysis (aqua regia digest) was conducted on all samples. A QA/QC program was implemented as part of the sampling procedure for the drill program. One standard, one blank or one duplicate was inserted per group of 20 samples sent the laboratory. These standards were purchased commercially from Rocklabs Ltd. of Auckland, New Zealand. The San José de Gracia drill program is under the direct supervision of Kevin Sullivan, B.Sc., MAusIMM, contracted by Mineras de DynaResource S.A. de C.V., the operating entity at San José de Gracia. Mr. Sullivan is Goldgroup's Vice President, Exploration and a qualified person, as defined by NI 43-101. Mr. Sullivan has reviewed the technical information contained in this news release and reviewed the release.
About Goldgroup
Goldgroup is a well-funded Canadian-based gold production and exploration Company focused exclusively on Mexico, targeting growth in gold production, mineral resources, profitability and cash flow from a portfolio of production, development and exploration stage projects. The Company owns and operates the Cerro Colorado Gold Mine in Sonora, Mexico. Goldgroup's property portfolio includes its interests in its flagship project, Caballo Blanco in Veracruz and the San José de Gracia project in Sinaloa.
Goldgroup is lead by a team of highly successful and seasoned individuals with extensive expertise in exploration, corporate finance and mine development in Mexico.
For further information on Goldgroup, please visit www.goldgroupmining.com
or contact:
Keith Piggott, President & CEO
T: 604-682-1943
David Fry, Corporate Development
Toll Free: 1-877-655-ozAu (6928)
Goldgroup Mining Inc.
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