Goldgroup Mining (OTC Other: GGAZF; TSX: GGA) has increased its indicated mineral resources at the La Paila Zone at Caballo Blanco by 314%, from 139,000 ounces to 575,000 ounces of gold. Inferred mineral resources were 419,000 ounces of gold, resulting in total MII of 1 million gold ounces. In addition, this updated report now includes a component of silver mineral resources, including 2,150,000 ounces in the indicated category and 1,930,000 ounces in the inferred category.
According to Keith Piggott, the Company’s President and CEO, “The updated resource estimate on the Caballo Blanco project is a significant milestone for the Company. Goldgroup has been able to grow substantially the resources in the La Paila Zone, which is expected to form the basis of our upcoming PEA in the first quarter of 2012. We continue to achieve our Company targets and are currently in-line to commence production on the project by 2012 year-end. Furthermore, we intend to continue growing our resources in 2012 as we continue to conduct infill drilling at the La Paila Zone, as well as exploration drilling at multiple identified anomalies in the south, southwest and northeast of the Northern Zone, in addition to drilling new targets in the Highway Zone.”