Goldgroup Updates Cerro Prieto GOLD MINE Operations
GOLDGROUP UPDATES CERRO PRIETO GOLD MINE OPERATIONS
Vancouver, British Columbia (April 11, 2024) Goldgroup Mining Inc. (“Goldgroup” or the “Company”) (TSXV:GGA,
OTC:GGAZF,) is pleased to provide an update to mining operations at its 100%-owned Cerro Prieto open-pit, heap leach gold
mine located in Sonora, Mexico.
CERRO PRIETO MINE
The Cerro Prieto Mine is an open pit heap leach gold mine located in Sonora, Mexico. Goldgroup commenced mining
operations at Cerro Prieto in 2013 based upon a measured and indicated resource of 8,220,000 metric tonnes of 0.81 g/t Au,
17.22 g/t Ag, 0.21% Pb and 0.54% Zn, published in a 2013 technical report. These resources have been fully exploited as of
mid-2023 whereafter, the Company mined additional mineralization identified during subsequent exploration but not yet
included in a published resource calculation (under NI 43-101). From the start of mining operations in 2013 to-date, Cerro
Prieto has produced 117,033 ounces of gold. Ongoing mining operations continue to produce approximately 1,000 – 1,200
ounces of gold monthly.
Mining was focused within the El Centro, Union and South Pit zones (see Image 1) along a mineralized structurally controlled
shear zone, the “Cerro Prieto Shear” over a strike length of approximately 1,600 meters. A fourth zone, Puma, offset from the
Cerro Prieto Shear was discovered and drilled in 2019 to 2023 and mined since 2020 to 2023. See Figure 1 for zone locations.
The published and now exploited 2013 resources and new mineralized zones referred to below, were/are located within or
near the Cerro Prieto Shear, a major north trending, near vertical shear zone up to 65 meters wide, that contains a series of
major veins near the edges of the zone, secondary veins, stringers zones, breccia zones and silicification which, with the ve ins,
forms a mineralized system from 15 to 65 meters thick.
Union Pit
Crushing
Leach Pads
Centro Pit
South Pit
Cerro Prieto Mine
Esperanza
Pre
-
development
Nueva Esperanza
& Reyna
Image 1
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Figure 1.- Cerro Prieto Location of Mining and Exploration Zones
Cumbre – Esperanzas Zones 2023 Exploration Drilling
Highlights of some significant drill hole intersections,
• DDH CP362
o 19.70 meters @ 1.03 g/t Gold and,
o 5.5 meters @ 0.75 g/t Gold
o 20.98 meters @ 1.02 g/t Gold
• DDH CP374
o 13.20 meters @ 2.05 g/t Gold and,
o 4.50 meters @ 1.16 g/t Gold and,
o 1.55 meters @4.78 g/t Gold
• DDH CP367 –
o 24.96 meters @ 0.69 g/t Gold and,
o 7.70 meters @1.35 g/t Gold and,
o 17.97 meters @ 1.13 g/t Gold and,
o 11.80 meters @ 0.61 g/t Gold
• DDH CP 371
o 4.25 meters @ 1.07 g/t Gold and,
o 7.78 meters @ 0.98 g/t Gold and,
o 11.67 meters @ 1.16 g/t Gold and,
o 9.22 meters @ 0.92 g/t Gold
• DDH CP384 –
o 13.70 meters @ 1.15 g/t Gold
• DDH CP 388
o 13.20 meters @ 1.33 g/t Gold
• DDH CP 389
o 12,20 meters @ 0.77 g/t Gold
• DDH CP 406
o 43.89 meters @ 0.43 g/t Gold and,
o 9.05 meters @ 0.93 g/t Gold
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Diamond Drilling sample fire assay analytical results for gold and silver for 23 holes drilled on the Cumbre and Esperanza are
shown in Table I below. Drill hole location and orientation are show n in Table 2 and Figure 2 below.
Quality Assurance/ Quality Control (QA/QC)
An industry standard Quality Assurance/ Quality Control (QA/QC) program was followed by the Company for all drilling
samples with 41 sample duplicates, standards and blanks inserted into the sample stream of 268 drill hole samples, all of
which were analyzed by ALS Chemex , located in Hermosillo, Mexico, a certified independent laboratory.
Table 1 – Assay Results Cumbre & Esperanza
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Table 1 – Assay Results Cumbre & Esperanza, cont.
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Table 2.- ESPERANZAS DRILL HOLE INFORMATION
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The Company has internally modeled an open pit shell containing the identified mineralization and has chosen to advance
these two zones into production. Mine ramp preparation and waste stripping was completed during January and February
2024 and production blasting and mining of mineralized material commenced at the end of February 2024. See Image 2
below.
The Company cautions that it has chosen to advance the Cumbre and Esperanza zones into production without the benefit
of completing a feasibility study demonstrating economic and technical viability or, an independent technical report
confirming resources or reserves. Accordingly, readers should be cautioned that Goldgroup’s production decision has
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been made without a comprehensive feasibility study of established reserves or resources such that there is greater risk and
increased uncertainty as to future economic results from the Cerro Prieto Mine and a higher technical risk of failure than
would be the case if a feasibility study were completed and relied upon to make a production decision.
Metallurgy,
Metallurgical testing as presented in the 2013 published technical report, section 6.2 Metallurgy, showed varying recoveries
up to 77% from samples of four zones within Centro, Union and South pits of the now fully exploited 2013 published resource.
Historic gold recoveries obtained since 2015 are displayed in graph form below. Starting in 2021 the mine experienc ed
ongoing difficulties in maintaining consistent crushing operations resulting in Run Of Mine (“ROM”) mineralization being
deposited to leach pads. ROM deposition increased in 2022 to as high as 47% of total mineralization deposited to the leach
pads. This ROM deposition to leach pad resulted in an expected, significant decrease in gold recoveries as demonstrated
below.
The Company has recently brought back into full service its 2,500 tonne s /day crushing circuit using a primary jaw crusher
with secondary and tertiary cone crushers crushing to final size of 5/8in which the Company anticipates will allow improved
recoveries to the traditional 60% range.
Planned Production Expansion
The Company is seeking to arrange funding to purchase a second full crushing circuit and expand irrigation of leaching pads to
double mine production to the 4,500 – 5,000 tonnes per day and if successful, expects to double is current gold production
from that stated above.
Esperanza Zone – 1st production March 2024
1st Mining
Bench
2nd
Working
Face
Low Grade
Dump
Puma Pit
Nueva
Esperanza
&
Reyna
Zones
Image 2
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Craig Gibson, Ph.D., CPG is the qualified person under NI 43-101 who has reviewed and approved the technical disclosure
contained in this news release.
Technical Report Update In Progress.
Goldgroup has retained an independent Qualified Person that is preparing an updated comprehensive technical report f or the
Cerro Prieto Mine. Completion and publication of this report is expected near end of June 2024.
About Goldgroup
Goldgroup is a Canadian-based mining Company that owns and operates the Cerro Prieto heap-leach gold mine located in the
State of Sonora, Mexico and is led by a team of successful and seasoned individuals with extensive expertise in mine
development, corporate finance, and exploration in Mexico.
For further information on Goldgroup, please visit www.goldgroupmining.com
On behalf of the Board of Directors,
Ralph Shearing, CEO
Investor Relations
Toll Free: 1-877-655-ozAu (6928)