Goldgroup Report New Gold Intercepts at Caballo Blanco, Veracruz

Goldgroup(TSX:GGA) announced the expansion of the La Paila oxide gold zone at the Caballo Blanco Project. Ten diamond drill holes yielded significant gold intercepts.

As quoted in the press release:

The Company focused its 2011 drilling program primarily on the La Paila zone, specifically with the objective to design the first open pit and to update the project’s NI 43-101 resource estimate, which is expected to be released in the first quarter of 2012.

Goldgroup, President &CEO, Keith Pigott, said:

These diamond drill results yielded significant gold intercepts above the cut-off 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.

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