VANCOUVER, Oct. 6, 2015 /CNW/ - Goldgroup Mining Inc. ("Goldgroup" or
the "Company") (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) today announced
production and sales results for January to September 2015 for the
Cerro Prieto project located in the Cucurpe Mining District, Sonora,
Mexico, which 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.
Cerro Prieto commenced small-scale trial mining and leaching in December
2013 and until commercial production is achieved, all costs and
revenues are capitalized to the mineral property. During the nine month
period ended September 30, 2015, Cerro Prieto produced 6,250 ounces of
gold.
|
|
|
|
|
|
|
|
|
|
Cerro Prieto | January | February | March | April | May | June | July | August | September |
Gold ounces - produced
|
541
|
581
|
512
|
492
|
444
|
846
|
818
|
1,095
|
921
|
Gold ounces - sold
|
280
|
642
|
677
|
416
|
378
|
805
|
870
|
961
|
922
|
As depicted in the above graph, the project has shown a positive trend
in gold production over the previous two quarters.
Keith Piggott, Chairman, President and CEO of Goldgroup commented: "The
Company has continued its effort to bring better efficiency into Cerro
Prieto to allow profitability at lower metal prices. Our key focus for
the rest of the fiscal year is to ramp up gold production and lower
crushing and mining costs. Although there's still lots of work to be
done, I would like to take this opportunity to thank all of the team
members for their efforts during these volatile times."
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 these 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.
About Goldgroup
Goldgroup is a Canadian-based gold production, development, and
exploration Company with significant upside in a portfolio of projects
in Mexico, 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 also
operates its 100%-owned Cerro Prieto heap-leach gold mine, in the State
of Sonora.
Goldgroup is led by a team of highly successful and seasoned individuals
with extensive expertise in mine development, corporate finance, and
exploration in Mexico. Goldgroup's mission is to increase gold
production, mineral resources, profitability and cash flow, with a view
to building a leading gold producer in Mexico.
On behalf of the Board of Directors,
Mr. Keith Piggott, Chairman, President and CEO
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, 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 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.
Image with caption: "Gold Ounces Produced (CNW Group/Goldgroup Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20151006_C9960_PHOTO_EN_44298.jpg
<p> on Goldgroup, please visit <a href="http://www.goldgroupmining.com/" font-style="italic">www.goldgroupmining.com</a> </p>