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Resource Clips


Posts tagged ‘Goldgroup Mining Inc (GGA)’

Goliath looms large

March 18th, 2013

Treasury Metals maintains high grades at its Ontario gold project

by Greg Klein

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The principle is simple enough—high gold grades make good business sense. But actually finding those grades isn’t so simple. Nevertheless infill drilling brings reassurance to Treasury Metals’ TSX:TML Goliath project in the Kenora-Dryden region of northwestern Ontario. Assays released March 18 came from within the proposed open pit for the Main zone and its C zone counterpart, around 30 to 50 metres away.

Treasury Metals maintains high grades at its Ontario gold project

Infill drilling, environmental permitting and a feasibility study
are among Treasury Metals’ 2013 plans.

C zone results show:

  • 3.13 grams per tonne gold over 13 metres
  • 0.78 g/t over 16 metres
  • 1.58 g/t over 7.5 metres.

Main zone results show:

  • 14.6 g/t over 1 metre
  • 1.13 g/t over 16.4 metres
  • 430 g/t over 1 metre.

True widths weren’t provided. The top-most intercept started at a down-hole depth of 16.7 metres in the Main zone, while the deepest ended at 207.6 metres down hole in the C zone.

A topcut will be applied to the results later, president/CEO Martin Walter tells ResourceClips. The interval of 430 g/t over 1 metre “demonstrates there is a nugget effect to the deposit,” he says. “We think the nugget effect is going to go with us at the end of the day. The good thing is those nuggets are in the pit, in the top part. But I wouldn’t read too much into it. The same thing could be five grams.”

Treasury is now performing “a gap analysis of the infill drilling to see if we’ve missed areas. Then we’d go back and re-drill them,” Walter explains. After infill drilling’s complete “there’ll be a new resource update that’ll lead to the feasibility. At the same time we have the EIS [federal environmental impact statement] moving forward.”

Walter expects to see the EIS and feasibility study “coming together at the same time late Q3 or early Q4.”

But while he hopes to go straight to full feasibility, he doesn’t rule out a pre-feas first. “I don’t think it would slow us down,” Walter adds. “We fully expect to get positive results from that feasibility or pre-feasibility because we’re maintaining grade.”

He emphasizes, “There are a lot of projects in Canada and around the world that are considered massive low-grade deposits, under one gram. We have a different model. We want to keep the grade from two and a half grams to three grams, in that range. It just makes good business sense. When it comes to processing, you still have to pay for the same amount of tonnage. It’s the same cost to process a 0.6-gram or a five-gram.”

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Goldgroup reports Mexico Tunnel Samples including 1.13 g/t gold over 49.4m

March 29th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGoldgroup Mining Inc TSX:GGA announced tunnel assays from its Caballo Blanco Gold Project in Veracruz State, Mexico. Results for the main tunnel show
1.13 g/t gold over 49.4 metres (channel sample)
1.04 g/t over 49.4 metres (blast sample)

Results for the crosscut tunnel show
1.26 g/t over 28.3 metres (channel sample)
1.17 g/t over 28.3 metres (blast sample)

Goldgroup expects to release initial results of the project’s preliminary economic assessment in mid-April. The company has a draft report but is waiting for final determination of a few key parameters before the results can be issued.

View Company Profile

Contact:
Keith Piggott
President/CEO
604.682.1943

or Stephanie Batory
Investor Relations
877.655.6928

Read feature story on Goldgroup Mining Inc.

by Greg Klein

Goldgroup reports Mexico Gold Results including 0.94 g/t over 107.9m

February 10th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGoldgroup Mining Inc TSX:GGA announced assays from its Caballo Blanco Gold Project in Veracruz State, Mexico. Results include

0.94 g/t gold over 107.9 metres
0.98 g/t over 76 metres
0.94 g/t over 40.3 metres
0.54 g/t over 44.5 metres
1 g/t over 14 metres
0.57 g/t over 22 metres
0.57 g/t over 20 metres
1.14 g/t over 10 metres

President/CEO Keith Piggott stated, “We are pleased with these new diamond drill results, which continue to confirm, define and expand La Paila Zone. As we continue to receive positive results from our 2011 drill program and conduct our additional 30,000-metre drill program in 2012, we expect to increase resources at La Paila Zone. Furthermore, management expects to identify new zones of mineralization in both the Northern Zone and Highway Zone through its 2012 diamond drill program.”

View Company Profile

Contact:
Keith Piggott
President/CEO
604.682.1943

Stephanie Batory
Investor Relations
877.655.6928

Read feature story on Goldgroup Mining Inc.

by Greg Klein

Goldgroup reports Mexico Gold Assays including 0.6 g/t over 197.1m

January 31st, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGoldgroup Mining Inc TSX:GGA announced results from its Caballo Blanco Gold Project in Veracruz State, Mexico. Assays include

0.6 g/t gold over 197.1 metres
0.88 g/t over 67.3 metres
0.49 g/t over 116 metres
0.84 g/t over 66.6 metres
0.64 g/t over 79.3 metres
0.39 g/t over 90 metres

President/CEO Keith Piggott stated, “We are pleased with these new diamond drill results, which continue to confirm, define and expand La Paila Zone. As we continue to receive positive results from our 2011 drill program and conduct our additional 30,000-metre drill program in 2012, we expect to increase resources at La Paila Zone, as the zone currently remains open to the south and southwest. Furthermore, the management expects to identify new zones of mineralization in both the Northern Zone and Highway Zone through our 2012 drill program.”

View Company Profile

Contact:
Keith Piggott
President/CEO
604.682.1943

or Stephanie Batory
Investor Relations
877.655.6928

Read feature story on Goldgroup Mining Inc.

by Greg Klein

Goldgroup reports Mexico Gold Assays up to 0.97 g/t over 69.6m

January 12th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGoldgroup Mining Inc TSX:GGA announced results from its Caballo Blanco Gold Project in Veracruz, Mexico. Assays include

0.97 g/t gold over 69.6 metres
0.77 g/t over 93.9 metres
0.65 g/t over 75.9 metres
0.58 g/t over 50 metres
0.47 g/t over 36.7 metres
0.41 g/t over 34 metres

President/CEO Keith Piggott stated, “All of these diamond drill results at La Paila Zone yielded significant gold intercepts above the cutoff grade, which are contained in completely oxidized, vuggy and siliceous rock occurring within and peripheral to the zone. These results continue to give better definition to the design of the first open pit. As planned, the 2011 drilling program was completed on December 18, 2011. In 2012, the company is planning a drill program of up to 30,000 metres to further delineate the Caballo Blanco mineral resource.”

View Company Profile

Contact:
Keith Piggott
President/CEO
604.682.1943

Stephanie Batory
Investor Relations
877.655.6928

Read feature story on Goldgroup Mining Inc.

by Greg Klein

Goldgroup reports Mexico Results up to 1.2 g/t Gold over 79.4m

December 16th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningGoldgroup Mining Inc TSX:GGA announced assays from its Caballo Blanco Gold Project in Veracruz, Mexico. Results include

1.2 g/t gold over 79.4 metres
0.91 g/t over 90.6 metres
0.65 g/t over 85 metres
0.4 g/t over 58 metres
0.25 g/t over 76 metres
1.6 g/t over 9.5 metres

President/CEO Keith Piggott stated, “These diamond drill results yielded significant gold intercepts above the cutoff grade, which are contained in completely oxidized, vuggy and siliceous rock occurring within and peripheral to the existing La Paila Zone. As anticipated, the planned 2011 drilling program is on time and within budget, and will be completed by December 18, 2011. We are pleased to be on target for initial production at Caballo Blanco by 2012 year-end.”

View Company Profile

Contact:
Keith Piggott
President/CEO
604.682.1943

or Stephanie Batory
Investor Relations
877.655.6928

by Greg Klein

Goldgroup reports Mexico Results up to 0.89 g/t Gold over 144m

October 20th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningGoldgroup Mining Inc TSX:GGA announced assays from its Caballo Blanco Gold Project in Veracruz, Mexico. Results include

0.89 g/t gold over 144 metres
0.69 g/t over 126.3 metres
1.16 g/t over 57.3 metres
0.47 g/t over 69.5 metres
0.49 g/t over 63.4 metres
1.01 g/t over 17 metres

President/CEO Keith Piggott remarked, “These diamond drill results yielded significant gold intercepts above the cut-off grade and continue to be contained in completely oxidized, vuggy and siliceous rock occurring inside and peripheral to the existing La Paila zone. These results continue to give better definition to the design of the first open pit and its extension in almost all directions. The current drilling program, together with the ongoing column-leach metallurgical testing, environmental and sociological studies, as well as the run-of-mine heap-leach pad design and other engineering, form the basis for targeting Caballo Blanco production in late 2012.”

View Company Profile

Contact:
Keith Piggott
President/CEO
604.682.1943

or David Fry
Corporate Development
877.655.6928

Read more about Goldgroup Mining Inc

by Greg Klein

Out Of Many, Goliath

September 6th, 2011

Treasury Moves Toward Feasibility in Ontario

By Greg Klein

It began as a case of fragmented ownership, explains Treasury Metals President/CEO Martin Walter. Teck Resources made the discovery in the early 1990s while exploring Ontario’s Kenora Mining District. Corona Gold came in as a JV partner. Then Laramide Resources staked the down-dip portion of the project. “Corona Gold and Laramide decided to put both parts of the project together, and that’s what constitutes Treasury Metals today,” Walter says. And, as if completing an Old Testament genealogy, Treasury begat Goliath.

The Goliath Gold Project, that is. Once the properties were assembled into a single 49-square-kilometre entity, Treasury began drilling in earnest. A resource estimate came out in 2009 and a PEA in 2010. An updated resource is scheduled for November with full feasibility to follow.

Treasury Moves Toward Feasibility in Ontario

Despite a mining history dating to the 19th century, the Kenora Mining District remains underexplored, the company maintains. Walter calls the local infrastructure “perfect—probably among the best in the world.”

Goliath’s 2009 43-101 estimated 3.4 million tonnes grading 2.5 grams per tonne for 270,000 gold ounces indicated and 10.6 million tonnes grading 2.7 g/t for 930,000 ounces inferred.

Based on that resource and a gold price of $1,200 per ounce, the July 2010 PEA projected a combined open-pit/underground operation with an initial CAPEX of $76 million, an after-tax net present value at 5% of $91 million and a 43% internal rate of return.

Goliath assays released August 26 included 8.1 g/t gold over 6.4 metres (including 11.6 g/t over 4.4 metres), 3.1 g/t over 13.4 metres (including 6.2 g/t over 3.7 metres), 2.3 g/t over 13.5 metres (including 4.4 g/t over 3.6 metres) and 2.9 g/t over 10.5 metres (including 8.2 g/t over 2.6 metres). On August 30 Treasury released one additional result: 22.3 g/t over 6 metres.

“We still have two machines turning on site,” Walter reports. “We started off talking about a program of 20,000 metres. But the results have been so encouraging, our knowledge of the deposit has increased so much and the targeting is getting much better, so we’re starting to really understand the geometry of the ore body. Because of that, the program has just been ongoing. Now we’re touching 45,000 to 50,000 metres. There was some drilling late last year too, so we’ll have something like 60,000 or 65,000 metres to add to the resource.”

The updated estimate is scheduled for early November, with feasibility beginning late this year or 1Q 2012.
Walter also hopes to get an advance exploration permit by January. “When Teck had the project they actually put a portal and a decline into the footwall of the project, down to 75 metres. We need to get that permit, reopen the decline and extend it down to 400 metres. That’s going to be a big part of next year.”

Last July the company finished a heli-borne EM survey over Goliath and Goldcliff, Treasury’s early-stage project 40 kilometres away. “We’re expecting those results to come in very shortly,” Walter says. “That will further drive exploration on both properties.”

Everything is looking positive and, as long as we keep up the good work, we’ll make that decision in the next eight to 12 months. And yes, the plan is to put it into production ourselves —Martin Walter

Although Goliath is the company’s flagship, negotiations are underway to pick up another gold property that’s closer to production. Pico Machay in Peru could open as early as late 2012. A simple open-pit dump-leach operation, it would require a very low CAPEX of $15 million to $20 million, Walter says. Once in production, it’s projected to produce 50,000 gold ounces a year. Negotiations with Pan American Silver Corp include Treasury issuing Pan Am 11.5 million common shares, paying US$21 million and turning over Treasury’s 3% NSR from Goldgroup’s Cerro Colorado Gold Project in Mexico.

In early August, Treasury filed a preliminary prospectus for a $16-million share offering to help finance the deal. On August 31, the two parties extended the closing date to September 21, their second extension since July 31.

Pico Machay became Pan Am property in 2009 when the company bought Aquiline Resources. Walter, Treasury chairman Marc Henderson and CFO Dennis Gibson are all former Aquiline alumni—hence their interest.

“Over the past six to eight years we’ve been involved in all the drilling, all the metallurgy and all the engineering work that has been completed on that project. So we know it very, very well,” Walter says.

Pico Machay has a 2011 resource estimate of 10.6 million tonnes grading 0.78 g/t for 270,000 gold ounces measured and indicated and 23.9 million tonnes grading 0.58 g/t for 450,000 ounces inferred.

“We want to put that into production and use the cash flow to further the development of Goliath,” Walter says.

As for Peru’s mining outlook, “I think it’s business as usual. The new government [of President Ollanta Humala] has given out positive signs that the mining industry will continue as it did under the previous government. There may be some minor changes, but nothing earth shattering.”

Back to Goliath, “We’re still probably about eight to 12 months from a production decision,” Walter says. “Everything is looking positive and, as long as we keep up the good work, we’ll make that decision in the next eight to 12 months. And yes, the plan is to put it into production ourselves.”

At press time Treasury had 47.71 million shares trading at $1.11 each for a $53.9 million market cap. About 54% of shares are held by retail, 35% by institutions and 11% by management. Top shareholders are Laramide and Corona with 11% each.

Eight-fold Expansion

August 23rd, 2011

Goldgroup plans two 2013 Mexico gold mines

By Greg Klein

The metal has hit the pedal. Gold smashes record after record as it continues its 11-year run. Some analysts predict gold will surpass its 1980 historic high of an inflation-adjusted $2,300 per ounce. But are such prices enough to guarantee prosperity in the mining sector? David Fry, Corporate Development for Goldgroup Mining, doesn’t think so.

Goldgroup is in a really unique position because unlike other companies who are more senior to us, who are really taking advantage of the leverage through the price of gold, we are also creating leverage by expanding our resources—through consolidation, as well as the drill bit—and by increasing production,” he says. “Our projected increase within the next two to two-and-a half years is from 25,000 ounces per year currently to around 200,000 ounces per year.”

Goldgroup plans two 2013 Mexico gold mines

Goldgroup plans that eight-fold expansion by increasing its interest in two joint ventures and bringing them into production by late 2013. That will give the company three operating gold mines, all in Mexico.

Last week the company announced completion of a 70% earn-in on its flagship Caballo Blanco Project near the southeastern port of Veracruz. The remaining 30% is held by Almaden Minerals.

Caballo Blanco’s 2009 resource estimate shows 6.7 million tonnes grading 0.65 grams per tonne for 139,000 gold ounces indicated and 27.6 million tonnes grading 0.58 g/t for 517,000 gold ounces inferred. The resource also estimates 410,000 silver ounces grading 1.92 g/t indicated and 1.63 million silver ounces grading 1.84 g/t inferred. This resource is limited to the project’s La Paila Zone, which is open in all directions.

August 11 assays from La Paila include 0.71 g/t gold over 84.8 metres, 0.53 g/t over 94.8 metres, 0.51 g/t over 71.5 metres, 0.62 g/t over 42 metres and 0.52 g/t over 22 metres.

These assays, Fry comments, are “more of the same. They’re all around or at cut-off, which is 0.2 grams per tonne. That’s a high-sulphidation, almost totally oxidized low-grade bulk-tonnage deposit. We continue to extend the known mineralization to the south and southwest based on our recent drill results. We’re essentially just extending the ore body. The purpose of that is to revise the current 43-101 and add to the existing ounces.”

Along with the update, Goldgroup plans to begin a PEA later this year with the intention of shipping ore by the end of 2012.

It’s a fast-paced but simple project, Fry explains. “It’s run-of-mine; it’s no strip; it’s no crushing; and it’s highly oxidized ore that leaches extremely fast. It’s not expensive, and because it’s not expensive it won’t take long to get into production. We already possess open-pit heap-leach technology and experience because we have a producing mine in northern Mexico.” The new mine, he says, will add a low-cost 100,000 gold ounces a year to the company’s annual output.

It’s run-of-mine, it’s no strip, it’s no crushing, and it’s highly oxidized ore that leaches extremely fast. It’s not expensive, and because it’s not expensive it won’t take long to get into production —David Fry

Further north and close to the west coast, Goldgroup holds a 50% interest with DynaUSA in another advanced-stage gold project, San Jose de Gracia. A 2009 estimate shows an inferred resource of 3.44 million tonnes with 618,000 gold ounces grading 5.59 g/t and 1.11 million silver ounces grading 10.02 g/t.

Since then the company has drilled another 135 holes, providing data for an updated resource due 3Q 2011 with a PEA following and underground mining slated for late 2013. Goldgroup projects another 100,000 ounces a year from San Jose.

Farther north in Sonora State, Goldgroup’s 100%-owned Cerro Colorado open-pit heap-leach mine is expected to produce 25,000 gold ounces this year. The 2009 resource estimate shows 107,000 tonnes grading 0.63 g/t for 2,157 gold ounces measured, 9.6 million tonnes grading 0.54 g/t for 167,986 gold ounces indicated and 5.6 million tonnes grading 0.41 g/t for 74,177 gold ounces inferred. Cerro Colorado has been in production for seven years, with five additional years estimated. Exploration drilling continues.

The company’s only early-stage project is El Candelero, which it’s exploring under an option from its near-namesake Goldcorp. Goldgroup may earn up to 70% of this gold prospect.

Goldgroup’s team, Fry emphasizes, knows mining and knows the landscape. “[President/CEO] Keith Piggott has 14 years of experience in Mexico. He’s built two mines there already. They weren’t part of public companies, so most people don’t know about that. He has extensive experience identifying deposits and putting them into production in Australia. One of our directors, Paco [Francisco] Escandon, worked for [Vicente] Fox when he was President of Mexico. He worked for him six years; he’s an extremely well-connected guy. We have several hundred employees who work for us down there, both in the mine and at various projects. We, unlike some other companies, find operating in Mexico very good because we’ve got the track record and the history to do that.”

At press time Goldgroup had 120.3 million shares trading at $1.28, for a market cap of $156.4 million. Management owns approximately 17% of the shares, and the company has no debt and $40 million in working capital.

Goldgroup reports Mexico Gold Assays as high as 883.91 g/t over 0.4m

March 30th, 2011

Goldgroup Mining Inc TSX:GGA announced results from its San José de Gracia Gold Project in Sinaloa, Mexico. Assays include 5.42 g/t gold over 2.4 metres, 15.05 g/t over 3.4 metres, 883.91 g/t over 0.4 metres, 5.02 g/t over 1.9 metres, 63.85 g/t over 0.9 metres, 9.79 g/t over 1 metre, 4.26 g/t over 4.5 metres, 144.08 g/t over 1.2 metres, 9.04 g/t over 1.4 metres, 11.38 g/t over 4.1 metres, 10.49 g/t over 1.9 metres, 8.21 g/t over 1.7 metres and 20.15 g/t over 3.1 metres.

President/CEO Keith Piggott 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.”

View Company Profile

Contact:
Keith Piggott
President/CEO
604.682.1943

or David Fry
Corporate Development
877.655.6928

by Ted Niles