Goldgroup Mining Inc. (TSX: GGA and OTC: GGAZF) announced this morning some excellent results from additional diamond drilling at it’s flagship Caballo Blanco gold project in Veracruz, Mexico – including a number of thick sections of significant gold mineralization. This round of drilling further extends the the La Paila oxide gold zone to the southeast and southwest. Goldgroup’s current drill program is ongoing as they define and expand the eastern, southern and southwestern flanks of the La Paila gold zone which currently remains open in these directions.
Drill highlights include:
DDH 11 CBN 104: 50.00 m @ 0.96 g/t Au
DDH 11 CBN 101: 65.96 m @ 0.85 g/t Au
DDH 11 CBN 91: 74.35 m @ 0.60 g/t Au
Commenting in the release, Keith Piggott, Goldgroup’s CEO stated: “These diamond drill results yielded gold intercepts contained in completely oxidized, vuggy and siliceous rock occurring inside and peripheral to the existing La Paila zone. They are similar in grade to the current NI 43-101 estimated mineral resource and continue to give better definition to allow the design of the first open pit. The current drilling program, together with the on-going column-leach metallurgical testing, environmental and sociological studies as well as the run of mine heap-leach pad design, form the basis for targeting to bring Caballo Blanco into production in 2012.”
Goldgroup has consistently stated their goal of moving the Caballo Blanco project into the 100,000 oz plus (gold) production category with start-up production scheduled for 2012. This level of gold production would be a game changer event for this junior mining group and in the meatime, they continue to produce excellent results from the drill bit as they increase already defined 43-101 gold resources at both Caballo Blanco and San Jose de Gracia.
Here is a link to the updated drill map for Caballo Blanco’s La Paila zone: www.babybulls.com/PDF/Caballo_Blanco_Drill_Hole_Location_Map_June_28_2011_Holes_87-104.pdf