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Goldgroup Mining Inc. (TSX:GGA) announced its audited financial results for the year ended December 31, 2011. Highlights include acquisition of the remaining 30% interest in the Caballo Blanco project whereby Goldgroup now has 100% ownership; and completion of a short-form prospectus financing of 28.75 million common shares.
As quoted in the press release:
2011 Highlights
- During the first quarter of 2011, the Company met the required aggregate property related expenditures of $12,000,000 to complete its 70% earn-in interest on the Caballo Blanco project.
- On March 10, 2011, the Company completed a short-form prospectus financing of 28.75 million common shares at a price of C$1.40 per share, for aggregate gross proceeds C$40,250,000.
- On March 14, 2011, the Company completed its earn-in/option agreement with DynaResource de Mexico S.A. de C.V. (“DynaMexico”) for its 50% equity interest on the San José de Gracia project by reaching the expenditure funding requirement of $18,000,000.
- On November 23, 2011, the Company announced an updated Technical Report for the San José de Gracia project, dated effective September 5, 2011, which significantly increased the Company’s mineral resource estimate at San José deGracia. The estimate includes an indicated resource at Tres Amigos of 913,000 tonnes grading 5.00 grams per tonne gold, or 147,000 ounces of gold, and an aggregate inferred resource at all four veins of 5,813,000 tonnes grading 5.16 grams per tonne gold, or 963,000 ounces of gold, representing an increase of 56% from the last mineral resource estimate.
- On October 14, 2011, the Company acquired the remaining 30% interest in the Caballo Blanco project held previously by Almaden Minerals Ltd. Goldgroup now owns 100% of the Caballo Blanco project.
- The Company incurred mineral expenditures of $32,121,245 at Caballo Blanco, which includes acquisition costs of$19,049,197, drilling costs of $6,467,394, and other exploration and project development costs of $6,604,654.
- The Company completed 32,345 metres of diamond drilling on the La Paila Zone at Caballo Blanco.
- The Company recorded an impairment charge of $8,600,000 on the Cerro Colorado mine. In the process of preparing an updated Technical Report for the Cerro Colorado mine, it was determined that the remaining in-pit resource which is being mined at Cerro Colorado is less than previously estimated, and it is currently expected that at current production rates and production costs, the estimated remaining life of the in-pit resource will be reduced to approximately 18 months, as ofJanuary 1, 2012. An updated Technical Report is expected to be released in the second quarter of 2012.
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