VANCOUVER, March 2, 2017 /CNW/ - Goldgroup Mining Inc.
("Goldgroup" or the "Company") (TSX:GGA, OTC:GGAZF, BMV
SIX:GGAN.MX) announces increased gold production in 2016 with plans
for continued expansion in 2017 for Cerro
Prieto.
On April 1, 2016, the Cerro Prieto mine achieved its main commercial
production criteria of over 1,200 oz gold production per month
consistently over a two-month period. This was achieved by better
utilization of crushing and pad capacity by management.
During the year ended December 31,
2016, Cerro Prieto produced
approximately 15,608 ounces of gold.
GOLD
OZ
2016
|
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
PRODUCED
|
3,379
|
4,494
|
3,811
|
3,924
|
15,608
|
SOLD
|
3,339
|
4,499
|
3,884
|
4,021
|
15,743
|
During the period ended December 31,
2016, the Company:
- Completed electrical installation to the National Grid, which
is expected to reduce diesel consumption resulting in lower
operating cost.
- Installed on site bulk explosive handling, which is also
expected to reduce unit cost.
- Designed tertiary cone crusher and screen system, which will
further reduce the feed size to the final HPGR crusher, and also
give increased throughput. This is expected to increase gold
production and enhance the profit margin and is expected to be
completed the beginning of Q2 2017.
- Planned further exploration within current concessions to
potentially extend mine life (current planned term is 4
years).
Cerro Prieto is an operation
that was historically worked underground over 100 years ago. It
contained many old stope openings and hence detailed ore definition
was difficult to achieve by drilling alone. The Company
opened up the mine with a number of open cut faces to better
determine resources and characteristics. It has been in trial
operation for the last two years with detailed mine planning as the
mineralized zones were opened up and better defined, metallurgy
utilizing fine crushing and agglomeration was optimized and the
leaching parameters were determined in trial operations.
Annual Production
2014:
|
4,890 oz
gold
|
Annual Production
2015:
|
9,151 oz
gold
|
Annual Production
2016:
|
15,608 oz
gold
|
|
|
Expected Annual
Production 2017:
|
approx. 20,000 oz
gold
|
Production costs based on recent operations indicate a
sustaining cost less than US$900 /oz
gold for 2017.
Now that the mine is in sustainable operation, additional
resources within the same mineralized zone are being investigated
to extend mine life beyond the programmed 4 years. Goldgroup
believes that additional resources outside the current mining zone
but within the Cerro Prieto
concessions also show promise.
Keith Piggott, Chairman,
President and CEO of Goldgroup commented: "Our primary focus for
2017 is to continue to ramp up gold production and lower crushing
and mining costs through bringing 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
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.