Goldgroup Announces Gold Production for 2017 With Continued Expansion in 2018
Goldgroup Announces Gold Production for 2017 With Continued Expansion in
2018
VANCOUVER, March 2, 2018 /CNW/ - Goldgroup Mining Inc. ("Goldgroup" or the "Company")
(TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) announces gold production for 2017 with plans for
continued expansion in 2018 for Cerro Prieto.
The Cerro Prieto project, located in the Cucurpe Mining District, Sonora, Mexico, is comprised of the San
Felix (205 ha), San Francisco (10 ha), Elba (5.82 ha), Huerta de Oro (20 ha), Reyna de Plata (9.79 ha),
Cerro Prieto "North" (2,508 ha) and Argonauta 6 (4,120 ha) mineral concessions. Cerro Prieto is 52 road
kilometers from the regional center of Magdalena de Kino (population 40,000) and 150 kilometers
northeast of the city of Hermosillo. During the year ended December 31, 2017, Cerro Prieto produced
approximately 14,740 ounces of gold.
GOLD OZ
2017
Q1 Q2 Q3 Q4 Total
PRODUCED 3,516 3,086 3,456 4,668 14,740
SOLD 3,671 3,142 3,285 4,195 14,293
During the period ended December 31, 2017, the Company entered into an option agreement to
purchase an additional property in close proximity to the Cerro Prieto mine ("Cerro Prieto Regional"). The
Company made the first option payment in February and expects production to begin from the property in
March 2018.
With the combination of Cerro Prieto and Cerro Prieto Regional, the Company expects gold production
between 22,000 – 25,000 oz of gold for 2018.
All-in sustaining costs were approximately $769 and $1,017 for the three months and twelve months
ended December 31, 2017 respectively. Based on these results, the estimated production costs for 2018
indicate a sustaining cost less than US$850 /oz gold.
Keith Piggott, Chairman, President and CEO of Goldgroup commented: "Our primary focus for 2018 is to
continue to ramp up gold production through the existing mine at Cerro Prieto and the addition of the new
Cerro Prieto Regional property and lower crushing and mining costs through brining better efficiency into
Cerro Prieto, which will improve the financial position of the Company moving forward."
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 and Ecuador, 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 operates its 100%-owned Cerro Prieto
heap-leach gold mine, in the State of Sonora, Mexico, and is continuing the environmental assessment
and permitting processes to advance to production the El Mozo property in Ecuador.
Goldgroup is led by a team of highly successful and seasoned individuals with extensive expertise in
mine development, corporate finance, and exploration in Mexico and Ecuador. Goldgroup's mission is to
increase gold production, mineral resources, profitability and cash flow, with a view to building a leading
gold producer.
For further information on Goldgroup, please visit www.goldgroupmining.com.
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.
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%SEDAR: 00003703E
For further information: Mr. Keith Piggott, Chairman and President, Tel: 1-520-247-5753; Investor
Relations: Toll Free: 1-877-655-ozAu (6928)
CO: Goldgroup Mining Inc.
CNW 18:01e 02-MAR-18