Goldgroup Mining Inc. (TSE:GGA) announced the beginning of tunnel construction and blasting into the La Paila mineralized zone at its Caballo Blanco gold project, Veracruz, Mexico.
The press release is quoted as saying:
The tunnel will be driven into the La Paila zone for better interpretation of the high-grade structures within the mineralized zone and also to extract large scale bulk samples for pilot plant on-site metallurgical testing to confirm the suitability of an open-cut, run-of-mine, heap-leach gold operation.
The Caballo Blanco project covers an area of approximately 55,000 hectares and is centered next to the Gulf of Mexico, 65 kilometres northwest of the city of Veracruz in the state of Veracruz, Mexico. In November, 2009, Goldgroup acquired from NGEx an option to acquire a 70% interest in the Caballo Blanco project from Almaden Minerals Inc. In August, 2011, the Company satisfied its obligations to earn its 70% undivided interest in the Caballo Blanco project. Further information of a technical or scientific nature related to the Caballo Blanco project is available in the technical report entitled “NI 43-101 Technical Report Caballo Blanco Project and a Resource Estimate at the La Paila Zone” dated February 28, 2011, which is available under Goldgroup’s profile on SEDAR at www.sedar.com
Goldgroup’s President and CEO, Keith Piggott said:
“This is another important milestone. Together with our diamond drilling program and advanced on-site column leach testing, this tunnel development is consistent with our schedule to commence production at Caballo Blanco in 2012. The local communities have been very supportive of the Caballo Blanco gold project and many dignitaries and local representatives were present to witness the initial blast.”