Goldgroup Mining Inc. (TSX:GGA) announced that additional diamond drill holes at its Caballo Blanco gold project, Veracruz, Mexico have yielded significant gold intercepts, extending the La Paila oxide gold zone to the west, east and southwest.
As quoted in the press release:
All the holes presented above that intersected gold mineralization are in excess of the 0.2 g/t Au cut-off grade used in estimating the inferred mineral resource presented in the current Caballo Blanco NI 43-101 technical report available on SEDAR. The results presented today are part of the current drill program and are intended to be used in the preparation of an updated mineral resource estimate. A complete summary of the assay results from diamond drill holes DDH 10 CBN 54 to DDH 11 CBN 128 as well as a drill-hole location map of the La Paila zone detailing the relative locations of the drill holes will be posted on the Goldgroup website under “Projects – Caballo Blanco” at www.goldgroupmining.com.
Goldgroup Mining President and CEO, Keith Piggott said:
“These diamond drill results yielded significant gold intercepts above the cut-off grade and which 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 on-going 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 to bring Caballo Blanco into production in late 2012.”