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/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA
ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR DISSEMINATION IN THE UNITED STATES/
TSX: GGA
VANCOUVER, March 29 /CNW/ - Goldgroup Mining
Inc. ("Goldgroup" or the
"Company"), in coordination with DynaResource,
Inc. ("DynaUSA"-"DYNR-OTCBB"),
is pleased to announce that diamond drilling from the current 18,500 meter
diamond drilling program at the San José de Gracia
gold project in Sinaloa, Mexico ("San José de Gracia")
has encountered high grade gold mineralization yielding 883.91 g/t Au over
0.40 metres (Hole SJG-10-237 at Tres
Amigos) as well as 144.08 g/t Au over 1.24 metres
(Hole SJG-11-256 at La Union) plus many intercepts above the 2.0 g/t Au
cut-off grade.
Keith Piggott, President and CEO of Goldgroup,
stated: "Exploration at San José de Gracia
continues to deliver high grade gold results. This is significant as a number
of these recent drill results have expanded the known areas of
mineralization. We are very excited by our work at San José de Gracia to date and look forward to advancing the
project."
TRES AMIGOS VEIN
|
Drill
Hole
|
Mineralization
|
|
From (m)
|
To (m)
|
Interval (m)
|
Au grade (g/t)
|
SJG-10-233
|
177.00
|
179.40
|
2.40
|
5.42
|
SJG-10-234
|
96.48
|
98.46
|
1.98
|
3.09
|
and
|
214.61
|
217.97
|
3.36
|
15.05
|
SJG-10-235
|
147.65
|
151.15
|
3.50
|
2.95
|
SJG-10-237
|
92.44
|
92.84
|
0.40
|
883.91
|
SJG-10-239
|
145.90
|
147.75
|
1.85
|
5.02
|
SJG-11-242
|
229.15
|
230.95
|
1.80
|
3.13
|
and
|
258.37
|
262.30
|
3.93
|
2.38
|
SJG-11-246
|
107.30
|
108.20
|
0.90
|
63.85
|
SJG-11-251
|
16.76
|
18.50
|
1.74
|
2.35
|
SJG-11-257
|
60.84
|
63.33
|
2.49
|
5.37
|
and
|
92.00
|
94.66
|
2.66
|
5.00
|
and
|
104.56
|
106.33
|
1.77
|
2.81
|
LA
UNION
VEIN
|
Drill
Hole
|
Mineralization
|
|
|
From (m)
|
To (m)
|
Interval (m)
|
Au grade (g/t)
|
|
SJG-11-244
|
73.82
|
74.86
|
1.04
|
9.79
|
|
SJG-11-252
|
55.25
|
59.70
|
4.45
|
4.26
|
|
and
|
78.10
|
80.15
|
2.05
|
4.55
|
|
including
|
78.10
|
79.20
|
1.10
|
7.16
|
|
SJG-11-256
|
51.61
|
52.85
|
1.24
|
144.08
|
|
and
|
99.93
|
101.29
|
1.36
|
9.04
|
|
SJG-11-259
|
77.25
|
79.25
|
2.00
|
2.57
|
|
SAN PABLO VEIN
|
Drill Hole
|
Mineralization
|
|
From (m)
|
To (m)
|
Interval (m)
|
Au grade (g/t)
|
SJG-10-236
|
112.96
|
117.03
|
4.07
|
11.38
|
and
|
140.50
|
140.95
|
0.45
|
5.85
|
SJG-10-238
|
257.00
|
258.30
|
1.30
|
2.40
|
SJG-11-245
|
104.40
|
105.16
|
0.76
|
3.16
|
SJG-11-247
|
63.60
|
65.45
|
1.85
|
10.49
|
and
|
70.70
|
72.23
|
1.53
|
2.73
|
including
|
71.77
|
72.23
|
0.46
|
5.70
|
and
|
80.00
|
83.47
|
3.47
|
5.00
|
including
|
81.37
|
83.47
|
2.10
|
7.38
|
SJG-11-249
|
97.60
|
98.60
|
1.00
|
2.28
|
and
|
108.20
|
109.93
|
1.73
|
8.21
|
and
|
130.50
|
131.08
|
0.58
|
8.61
|
SJG-11-250
|
101.72
|
104.81
|
3.09
|
20.15
|
SJG-11-253
|
149.45
|
151.21
|
1.76
|
4.89
|
SJG-11-255
|
154.55
|
155.05
|
0.50
|
3.19
|
SJG-11-258
|
102.27
|
102.90
|
0.63
|
2.51
|
and
|
111.50
|
111.90
|
0.40
|
15.62
|
SJG-11-261
|
52.72
|
53.12
|
0.40
|
7.07
|
and
|
109.03
|
109.43
|
0.40
|
4.42
|
and
|
114.00
|
114.68
|
0.68
|
8.97
|
The holes presented above intersected mineralization in excess of the 2.0 g/t
Au cut-off grade used in estimating the inferred mineral resource presented
in the San José de Gracia NI 43-101
Technical Report dated February 28, 2011. Assay results from these latest
holes represent new drilling completed since the calculation of the current
mineral resource estimate and are intended to be used in the estimation of an
updated mineral resource.
A complete summary of these assay results and a map of the San José de
Gracia property detailing the relative locations of
the drill holes used in estimating the current NI 43-101 mineral resource,
this latest drill program and future proposed drilling, will be posted on the
Company's website under "Projects - San José de Gracia" at www.goldgroupmining.com.
The San José de Gracia District is
100%-owned by DynaResource de Mexico S.A. de C.V
("DynaMexico"). Goldgroup
currently owns 50% of DynaMexico. The remaining
interest in DynaMexico is owned by DynaUSA. San José de Gracia
is a high-grade advanced exploration gold project hosting a NI 43-101
compliant mineral resource estimate contained in four separate veins: Tres Amigos, San Pablo, La Union area and the La Purisima trend. Please refer to the NI 43-101 technical
report on San José de Gracia dated February
28, 2011 which is available on SEDAR.
Assaying and Qualified Person
After project geologists logged and marked the core, technicians cut
the individual lengths with a diamond saw, then tagged the bags and secured
them with security clips. The samples were then trucked to Hermosillo, Mexico
where Inspectorate America Corp. ("Inspectorate") crushed each
sample to -150 mesh. The rejects remained with
Inspectorate while the pulps were air couriered to Inspectorate's Richmond,
BC, Canada facility and analyzed for gold by fire assay with Atomic
Absorption ("AA") finish. Samples over 1.0 grams per tonne gold were re-run using fire assay with gravity
finish. In addition, a 30 element Inductively Coupled Plasma
("ICP") analysis (aqua regia digest) was
conducted on all samples. A QA/QC program was implemented as part of the
sampling procedure for the drill program. One standard, one blank or one
duplicate was inserted per group of 20 samples sent the laboratory. These
standards were purchased commercially from Rocklabs
Ltd. of Auckland, New Zealand. The San José de Gracia
drill program is under the direct supervision of Kevin Sullivan, B.Sc., MAusIMM, contracted by Mineras
de DynaResource S.A. de C.V., the operating entity
at San José de Gracia. Mr. Sullivan is Goldgroup's Vice President, Exploration and a qualified
person, as defined by NI 43-101. Mr. Sullivan has reviewed the technical
information contained in this news release and reviewed the release.
About Goldgroup
Goldgroup is
a well-funded Canadian-based gold production and exploration Company focused
exclusively on Mexico, targeting growth in gold production, mineral
resources, profitability and cash flow from a portfolio of production,
development and exploration stage projects. The Company owns and operates the
Cerro Colorado Gold Mine in Sonora, Mexico. Goldgroup's
property portfolio includes its interests in its flagship project, Caballo Blanco in Veracruz and the San José de Gracia project in Sinaloa.
Goldgroup is
lead by a team of highly successful and seasoned individuals with extensive
expertise in exploration, corporate finance and mine development in Mexico.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain information contained in this news release, including any
information relating to future financial or operating performance may be
deemed "forward-looking". All statements in this news release,
other than statements of historical fact, that address events or developments
that Goldgroup expects to occur, are
"forward-looking information". These statements relate to future
events or future performance and reflect Goldgroup's
expectations regarding the future growth, results of operations, business
prospects and opportunities of Goldgroup. These
forward-looking statements reflect Goldgroup's
current internal projections, expectations or beliefs and are based on
information currently available to Goldgroup. In
some cases forward-looking information can be identified by terminology such
as "may", "will", "should", "expect",
"intend", "plan", "anticipate",
"believe", "estimate", "projects",
"potential", "scheduled", "forecast",
"budget" or the negative of those terms or other comparable
terminology. Certain assumptions have been made regarding the Company's plans
at the San José de Gracia property. Many of
these assumptions are based on factors and events that are not within the
control of Goldgroup and there is no assurance they
will prove to be correct. Forward-looking statements are subject to a variety
of known and unknown risks, uncertainties and other factors that could cause
actual events or results to materially differ from those reflected in the
forward-looking statements, and are developed based on assumptions about such
risks, uncertainties and other factors including, without limitation:
fluctuations in precious and base metal prices; inherent hazards and risks
associated with mining operations; inherent uncertainties associated with
mineral exploration and development activities; uncertainties inherent in the
estimation of mineral reserves and/or resources and precious metal
recoveries; uncertainties related to actual capital costs, operating costs
and expenditures, production schedules and economic returns from Goldgroup's projects; uncertainties related to current
global financial conditions; uncertainties related to the availability of
future financing necessary to undertake exploration, development, mining and
processing activities on Goldgroup's properties; Goldgroup's substantial reliance on its Cerro Colorado
Mine for revenues; risks related to the planned expansion of the Cerro
Colorado Mine; risks related to the continued operation and planned expansion
of the Cerro Colorado Mine without a current economic analysis; risks related
to the integration of businesses and assets acquired by Goldgroup;
uncertainties related to the competitiveness of the mining industry; risks
associated with Goldgroup being subject to
government regulation, including changes in law and regulation and risks
associated with Goldgroup's need for governmental
licenses and permits; risks associated with Goldgroup
being subject to extensive environmental laws and regulations, including a
change in regulation; risks that Goldgroup's title
to its property could be challenged; political and country risk; risk of
water shortages and risks associated with competition for water; Goldgroup's need to attract and retain qualified
personnel; increases in off-site transportation and concentrate processing
costs; risks related to the need for reclamation activities on Goldgroup's properties, including the nature of
reclamation required and uncertainty of costs estimates related thereto;
risks associated with potential conflicts of interest; risks associated with
potential labour disputes; and risks associated
with potential blockades of mining operations as well as "Risks and
Uncertainties" included in the Annual Information Form and MD&A for Goldgroup available at www.sedar.com.
Forward-looking information is not a guarantee of future performance and
actual results and future events could differ materially from those discussed
in the forward-looking information. All of the forward-looking information
contained in this news release is qualified by these cautionary statements.
Although Goldgroup believes that the
forward-looking information contained in this news release are based on
reasonable assumptions, readers cannot be assured that actual results will be
consistent with such statements. Accordingly, readers are cautioned against
placing undue reliance on forward-looking information. Goldgroup
expressly disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new information, events
or otherwise, except in accordance with applicable securities laws.
The potential quantities and grades disclosed herein are conceptual in
nature and there has been insufficient drilling and exploration to define a
mineral resource. It is uncertain if further drilling and exploration will
result in the target being delineated as a mineral resource. The true width of these intercepts in the above tables are unknown
at this time.
This news release and the information contained herein does not
constitute an offer of securities for sale in the United States and
securities may not be offered or sold in the United States absent
registration or exemption from registration.
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