VANCOUVER, Aug. 15, 2016 /CNW/ - Goldgroup Mining Inc.
("Goldgroup" or the "Company") (TSX:GGA, OTC:GGAZF, BMV
SIX:GGAN.MX) announces its Cerro
Prieto production results for the second quarter ("Second
Quarter") ended June 30, 2016.
"Q2 2016 was a strong quarter operationally as
Cerro Prieto has officially gone
into commercial production," said Keith
Piggott, Chairman, President and CEO of Goldgroup, "Our
all-in sustaining cash cost for the quarter was $973 per ounce. We continue to work on the
opportunities to lower cash costs further to our target of
$900(1) per ounce as
previously forecasted in March
2016."
"We remain on target for our annual production guidance for 2016
of 15,000 ounces and our all-in sustaining cash cost guidance of
$900 per ounce(1).
(1) The foregoing are goals and targets forming part of the
Company's business plan and strategy. There is no assurance that
such goals and targets will be realized. Future production goals
and targets and mineralization definition goals will be subject to
detailed mining studies and decisions of the board of the
Company.
Operational results
Cerro Prieto commenced
small-scale trial mining and leaching in December 2013 and commenced commercial production
during the period ended June 30,
2016.
Operating
Statistics
|
Three months
ended
June 30,
2016
|
Three months
ended
June 30,
2015
|
Six months
ended
June 30,
2016
|
Six months
ended
June 30,
2015
|
Ore mined
(tonnes)
|
|
174,800
|
110,905
|
298,480
|
204,956
|
Waste mined
(tonnes)
|
|
1,176,010
|
853,801
|
2,527,086
|
1,679,683
|
Total mined
(tonnes)
|
|
1,350,810
|
964,706
|
2,825,566
|
1,884,639
|
Waste-to-ore-ratio
|
|
6.73
|
7.07
|
8.47
|
8.20
|
Ore to pad
(tonnes)
|
|
196,131
|
111,021
|
330,390
|
190,498
|
Recovery
|
|
58%
|
53%
|
61%
|
49%
|
Grade of ore mined
(g/t Au)
|
|
1.34
|
1.35
|
1.27
|
1.40
|
Grade of ore placed
on pad (g/t Au)
|
|
1.26
|
1.02
|
1.29
|
1.13
|
Gold ounces –
produced
|
|
4,270
|
1,913
|
7,874
|
3,417
|
Gold ounces –
sold
|
|
4,274
|
1,599
|
7,838
|
3,198
|
All-in sustaining
cash cost per ounce(3)
|
$
|
973
|
N/A(2)
|
N/A(2)
|
N/A(2)
|
All-in cash cost per
ounce(3)
|
$
|
1,182
|
N/A(2)
|
N/A(2)
|
N/A(2)
|
Average realized gold
price per ounce sold
|
$
|
1,260
|
$
|
1,194
|
$
|
1,225
|
$
|
1,205
|
(2) The Company began its cash cost disclosure upon
the commencement of commercial production during the three months
ended June 30, 2016.
(3) Cash cost is a non IFRS measure.
Estimates of Mineral Reserves necessarily depend upon a number
of variable factors and assumptions, all of which may vary from the
actual results, such as: changes in commodity prices, international
exchange rates, taxation of environmental regulations, or
unforeseen changes in geological or mining conditions.
A determination of Mineral Resources and Mineral Reserves
prepared by a QP are estimates based on technical assumptions that
comply with applicable mining standards. Though preparation
of the estimates are conducted in accordance with relevant mining
standards, the estimates are subject to a number of uncertainties
inherent in estimating quantities and classification of Mineral
Resources and Mineral Reserves, including the QP's assessment of
available financial, technical, geological, and contractual
information. Therefore, such statements should not be interpreted
as assurances of mine life or a measure of the profitability of
future operations, particularly in these times of global economic
uncertainty.
Scientific and technical information relating to Cerro Prieto presented above has been approved
by Rodney A. Blakestad, J.D.,
C.P.G., who by reason of education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work
experience, fulfills the requirements of a Qualified Person as
defined in NI 43-101, and he is Independent of the issuer applying
all of the tests in Section 1.5 of NI 43-101CP.
On August 8, 2013 the Company
released an updated National Instrument 43-101 Measured and
Indicated and Inferred mineral resource estimate (the "NI 43-101")
for Cerro Prieto. Giroux
Consultants Ltd. and Duncan Bain Consulting Ltd. prepared and
authorized the release of this NI 43-101 resource estimate entitled
"Report on the 2011-2012 Exploration Program including an Updated
Resource Estimation on the Cerro Prieto Project - Magdalena de Kino Area, Sonora State Mexico
dated June 10, 2013".
Highlights of this estimate can be found in the MD&A for the
year ended December 31, 2013 on
SEDAR.
The Company wishes to make clear that it is not basing its
production decision on a preliminary economic assessment
demonstrating the potential viability of mineral resources or a
feasibility study of mineral reserves demonstrating economic and
technical viability, and as a result there is increased uncertainty
and these are multiple technical and economic risks of failure
which are associated with this production decision. These risks,
among others, include areas that are analyzed in more detail in a
Preliminary Economic Assessment ("PEA") or Feasibility Study, such
as applying economic analysis to resources or reserves, more
detailed metallurgy, a number of various specialized studies.
About Goldgroup
Goldgroup is a Canadian-based gold production, development, and
exploration Company with a significant upside in a portfolio of
projects in Mexico, including a
50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of the
high-grade gold exploration project, San José de Gracia located in the State of Sinaloa. The Company also operates
its 100%-owned Cerro Prieto
heap-leach gold mine, in the State of
Sonora.
Goldgroup is led by a team of highly successful and seasoned
individuals with extensive expertise in mine development, corporate
finance, and exploration in Mexico. Goldgroup's mission is to increase
gold production, mineral resources, profitability and cash flow,
with a view to building a leading gold producer in Mexico.
On behalf of the Board of Directors,
Mr. Keith
Piggott, Chairman and President
Tel:
1-520-247-5753
Investor Relations
Toll Free:
1-877-655-ozAu (6928)
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 considered "forward-looking information"
(within the meaning of applicable Canadian securities law) and
"forward-looking statements" (within the meaning of the United
States Private Securities Litigation Reform Act of 1995). These
statements relate to analyses and other information that are based
on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Actual results could
differ materially from the conclusions, forecasts and projections
contained in such forward-looking information. 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 may have been made regarding the
Company's plans at the Cerro
Prieto project. 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 information is 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 information, and are developed based on
assumptions about such risks, uncertainties and other factors
including, without limitation: uncertainties related to actual
capital costs, operating costs and expenditures, production
schedules and economic returns from Goldgroup's projects;
uncertainties associated with development activities; uncertainties
inherent in the estimation of mineral resources and precious metal
recoveries; uncertainties related to current global economic
conditions; fluctuations in precious and base metal prices;
uncertainties related to the availability of future financing;
potential difficulties with joint venture partners; risks that
Goldgroup's title to its property could be challenged; political
and country risk; risks associated with Goldgroup being subject to
government regulation; risks associated with surface rights;
environmental risks; Goldgroup's need to attract and retain
qualified personnel; risks associated with potential conflicts of
interest; Goldgroup's lack of experience in overseeing the
construction of a mining project; risks related to the integration
of businesses and assets acquired by Goldgroup; uncertainties
related to the competitiveness of the mining industry; risk
associated with theft; risk of water shortages and risks associated
with competition for water; uninsured risks and inadequate
insurance coverage; risks associated with potential legal
proceedings; risks associated with community relations; outside
contractor risks; risks related to archaeological sites; foreign
currency risks; risks associated with security and human rights;
and risks related to the need for reclamation activities on
Goldgroup's properties, as well as the risk factors disclosed in
Goldgroup's Annual Information Form and MD&A. Any and 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 is 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 as may be required by, and
in accordance with, applicable securities laws.
SOURCE Goldgroup Mining Inc.