Significant Gold Intercepts at Goldgroup’s Caballo Blanco Property

Additional diamond drill holes at the Goldgroup Mining Inc. (TSX:GGA) 100% wholly-owned Caballo Blanco gold project in Veracruz, Mexico have yielded significant gold intercepts. 16 of the 19 drill holes contain intervals above the established cut-off grade, and of the 19 drill holes, 7 further define the La Paila mineral resource, while the remaining 12 were drilled to expand the southwestern flank of the La Paila Zone.

As quoted in the press release:

The Company focused its 2011 drill program primarily on the La Paila Zone, specifically with the objectives of designing the first open pit and updating the current NI 43-101 mineral resource estimate for Caballo Blanco. Moreover, in-house and consultant engineering have significantly advanced Goldgroup’s column leach testing in its large on-site facility and progressed leach pad and carbon recovery plant design. The drilling and infrastructure work at Caballo Blanco, combined with the anticipated updated NI 43-101 mineral resource estimate, are intended to form the basis of a preliminary economic assessment (PEA) expected to be completed in the first quarter of 2012. The current drill 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 commencement of production at Caballo Blanco by 2012 year-end.

As part of Goldgroup’s ongoing 30,000 metre drill program in 2012, the Company expects to continue diamond drilling in the La Paila Zone, in addition to diamond drilling a number of identified geochemical and geophysical targets occurring to the south, southwest and northeast of the La Paila Zone, all within the large Northern Zone ring structure. Furthermore, the Company also intends to drill targets in the Highway Zone, which is located approximately seven kilometres to the southeast of the Northern Zone.

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