Investment Banking Group Dahlman Rose recently visited Goldgroup Mining’s (TSX: GGA and OTC: GGAZF) Caballo Blanco gold property just north of Veracruz, Mexico and earlier this month released the following Site Visit Report.
Excerpt from Report:
Summary of Key Developments at Caballo Blanco Exploration drilling continues at Caballo Blanco in an effort to better define the extent and geometry of the La Paila zone which remains open to the southwest, northeast, and southeast. Recent drill results have encountered superb intercepts including 3.47 g/t Au over 48.5 meters. Drilling intercepts have all occurred at shallow depths and encountered an oxidized ore body – consistent with the company’s strategy of developing an open-cut, run-ofmine,heap-leach gold operation. The explosive permit and environmental approval will allow for more accurate interpretation of the mineralized structures as well as large bulk sampling for pilot metallurgical testing.
Impact on NAV The recent results are encouraging as the company aims to upgrade the current mineral resource. We expect new resources at CB in 2H 2011, and we expect the company could receive its full environmental permit as soon as the end of this year. Once all permits are received, construction on the leach pads, earth works, and processing/support facilities can commence. The company continues to expect that gold production could start as early as mid-2012.
Link to full Report: