Goldgroup Mining declares Cerro Prieto commercial production
Goldgroup Mining Inc. [GGA-TSX; GGAZF-OTC; GGAN.MX-BMV SIX] has declared commercial production began June 1, 2016 at its 100%-owned Cerro Prieto heap leach gold mine located 150 km northeast of Hermosillo in the Cucurpe Mining District, Sonora, Mexico.
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.
Cerro Prieto commenced small-scale trial mining and leaching in December 2013 and Cerro Prieto is expected to produce approximately 15,000 ounces of gold in 2016, with production weighted towards the second half of the year.
“We look forward to Cerro Prieto’s strong contribution to our growth profile over the coming years,” said Keith Piggott, Chairman, President and CEO of Goldgroup, “The mine is expected to be a significant contributor for many years to come.”
Mineral Resource Estimate Highlights:
- Measured resources in veins are 1.18 million tonnes grading 1.56 g/t gold, 30.28 g/t silver, 0.15% lead and 0.33% zinc for a total of approximately 59,000 ounces of gold;
- Indicated resources in veins are 4.92 million tonnes grading 1.03 g/t gold, 22.12 g/t silver, 0.32% lead and 0.80% zinc for a total of approximately 163,000 ounces of gold;
- Inferred resources in veins are 5.025 million tonnes grading 0.75 g/t gold, 20.62 silver, 0.49% lead and 1.28% zinc for a total of approximately 121,000 ounces of gold.
Cerro Prieto remains open to the south of the existing resource along the 7.5-km extension of the mineralized shear zone. Preliminary column leach test work completed by Kappes Cassidy & Associates, under the direction of Arthur H. Winckers and Associates, a consultant for the company, returned gold recoveries of between 47% to 68% with head grades ranging from 0.79 g/t to 0.95 g/t gold over 98 days.
Goldgroup is a Canadian-based gold production, development, and exploration Company with a 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.