Goldgroup Mining drills 4.78 g/t gold over 1.55 metres at Cerro Prieto, Mexico

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Goldgroup Mining Inc. [TSXV-GGA; OTC-GGAZF] provided an update to mining operations 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 where Goldgroup commenced mining operations 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 along a mineralized structurally controlled shear zone, the Cerro Prieto Shear over a strike length of approximately 1,600 metres. A fourth zone, Puma, offset from the Cerro Prieto Shear was discovered and drilled in 2019 to 2023 and mined 2020 to 2023.

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 metres 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 veins, forms a mineralized system from 15 to 65 metres thick.

Cumbre – Esperanzas Zones 2023 Exploration Drilling –Highlights of some significant drill hole intersections:

DDH CP362 returned 19.70 metres of 1.03 g/t gold and 5.5 metres of 0.75 g/t gold and 20.98 metres of 1.02 g/t gold. DDH CP374 returned 13.20 metres of 2.05 g/t gold and 4.50 metres of 1.16 g/t gold and 1.55 metres of 4.78 g/t gold. DDH CP367 returned 24.96 metres of 0.69 g/t gold and 7.70 metres of 1.35 g/t gold and 17.97 metres of 1.13 g/t gold and 11.80 metres of 0.61 g/t gold.

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.

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 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.

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 c

has recently brought back into full service its 2,500 tonnes/day crushing circuit using a primary jaw crusher with secondary and tertiary cone crushers crushing to final size of 5/8 inches which the company anticipates will allow improved recoveries to the traditional 60% range.

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.

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