Goldgroup Receives Explosives Permit and Environmental Approval for Caballo Blanco
Vancouver, British Columbia (May 2, 2011) - Goldgroup Mining Inc. ("Goldgroup" or the "Company") is pleased to announce that it has received its explosives permit and environmental approval for tunneling at the La Paila zone at its Caballo Blanco gold project in Veracruz, Mexico.
Two tunnels will be driven into the La Paila zone for better interpretation of the high-grade structures within the mineralized zone and also to extract large scale bulk samples for pilot metallurgical sampling to confirm the suitability of an open-cut, run-of-mine, heap-leach gold operation.
Keith Piggott Goldgroup's President and CEO said. "This is another important milestone. Together with our diamond drilling program and advanced on-site column leach testing, the granting of these approvals is in line with our schedule to commence production at Caballo Blanco in 2012."
About Caballo Blanco
Goldgroup owns a 70% interest in Caballo Blanco. The remaining 30% interest is owned by Almaden Minerals Ltd. The Caballo Blanco project consists of a series of oxide gold zones located in the Veracruz province of eastern Mexico. The initial gold zone at Caballo Blanco is the La Paila prospect located within a cluster of high-sulphidation epithermal gold deposits referred to as the Northern Zone. The current estimated mineral resource for La Paila consists of 139,000 ounces of gold (6.7 million tonnes grading 0.65 g/t Au) contained in indicated resources and 517,000 ounces of gold (27.6 million tonnes grading 0.58 g/t Au) contained in inferred resources. This estimate was compiled from 32 diamond drill holes totaling approximately 7,000 metres completed by NGEx Resources Inc. prior to Goldgroup's acquisition of its interest in the project from NGEx in November, 2009. Other known gold zones at Caballo Blanco occur approximately 7 km to the southeast at the Highway Zone. These gold zones have yet to be drill tested.
This news release has been prepared under the supervision of Mr. Kevin Sullivan, B.Sc. MAusIMM, and the Company's Vice President of Exploration who serves as the qualified person as defined by National Instrument 43-101 responsible for ensuring that the geological information in this release is accurate.
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
Keith Piggott, President & CEO
David Fry, Corporate Development
Toll Free: 1-877-655-ozAu (6928)