GOLDGROUP MINING INC. Goldgroup Mining Inc. provided an update to recently completed surface exploration at its 100%-owned Cerro Prieto open-pit, heap leach gold mine located in Sonora, Mexico. The Cerro Prieto Mine is an open pit heap leach gold mine located In Sonora, Mexico. From the start of mining operations in 2013 to date, Cerro Prieto has produced 117,033 ounces of gold.
Mined zones and more recently discovered mineralization are located within or near the Cerro Prieto Shear, a major north trending, near vertical shear zone up to 65 metres in width. The shear zone contains a series of major veins near its margins, along with secondary veins and zones of stringers, breccias and silicification which, with the veins, forms a mineralized system from 15 to 65 meters thick. Recent exploration has resulted in the discovery of significant mineralization in several new zones along the trend of the Cerro PrietoShear, both north and south of the existing mine.
Nueva Esperanza Zone Drilling. The Company has drill tested the Nueva Esperanza zone immediately north and contiguous to the Esperanza zone currently being mined. Seventeen preliminary drill holes tested this zone at a 25-metre line spacing.
Significant mineralization was encountered across appreciable widths in nine of the drill holes with assay result. The Reyna Zone is contiguous to and immediately north of the Nueva Esperanza zones referred to above, and chip sampling assay results returned significant gold values. This zone along with Nueva Esperanza requires additional exploration drilling to determine if contained mineralization will be able to meet minimum tonnage and cut-off grades to allow future mining; however, based upon geology, initial drilling and trenching results achieved to date, along with their location immediately along strike to the north of the Esperanza Zone, management is confident these two zones will provide future mine feed.
Recent Surface Exploration Identifies New Mineralized Zones. Cata, Coati & Cascabel Zones. Recent surface exploration up to 1.7 km south of the mine's heap leach pads has identified the potential extension of the Cerro Prieto Shear at the Cata and Coati Zones, along with the Cascabel Zone, a parallel mineralized structure.
Chip and grab sample analytical results for these surface samples assayed at the Cerro Prieto mine lab are presented in Fig. 4 and Table 3 below. Note that exploration surface samples from these three zones as well as the Reyna zone referred to above, have not been verified by an independent laboratory and the reader is cautioned that Company's mine lab has not been certified and therefore results could be different for assays obtained at an independent certified lab.
The Company however, notes that drill hole assay results obtained and reported on its most recent press release were assayed at both the mine lab and independent ALS Chemex, located in Hermosillo, Mexico and results obtained were similar, within expected tolerance. The Company intends to send future samples taken during planned trenching and drilling for independent lab analysis and at that time will implement an industry standard quality assurance quality control program for these targeted exploration zones. 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. The Company cautions that it chose to advance the Cerro Prieto Mine 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 s has been and are being 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.
