Goldgroup currently holds all of the required permits in place for current exploration and mining development activities at the Caballo Blanco site.
The first set of comments in from SEMARNAT in regards to Goldgroup’s EIS application were received by the Company on March 13, 2012. The comments requested more information on risk mitigation, along with environmental protection and rehabilitation, of several aspects of the proposed mining operations. In proactively addressing all of the comments from SERMANAT, Goldgroup will continue to ensure that the best interests of all stakeholders are factored into the development process of the project.
Caballo Blanco Project Update
In the approximately two years in which Goldgroup has been operating the Caballo Blanco project, the Company has been working with the local communities in various corporate social responsibility programs to benefit health, education and infrastructure. Moreover, 915 employment applications have been received by the Company for approximately 350 direct jobs that Caballo Blanco will generate once in production.
In response to the recent permitting developments, Keith Piggott, President & CEO of Goldgroup, stated the following: “Goldgroup’s corporate mandate is to meet or exceed all environmental standards. In the Company’s opinion, the commencement of gold production, while fully respecting the environment, is the optimal approach to maximize value for all stakeholders. Caballo Blanco is anticipated to be a highly sustainable gold project with significant upside exploration potential outside of the La Paila Zone, which will be a key focus of the 30,000 metre drill program in 2012. Further details of the mining operations at Caballo Blanco will be highlighted in the upcoming preliminary economic assessment. We are working diligently to achieve our goal of 100,000 ounces of annual gold production in 2013.”
About SEMARNAT
Secretaría de Medio Ambiente y Recurso Naturales (“SEMARNAT”) is the federal environmental regulatory agency in Mexico. Created in 2000 by former Mexican President Ernesto Zedillo Ponce de Leon, SEMARNAT’s primary mandate is the following: “Promote the protection, restoration and preservation of ecosystems, natural resources and environmental goods and services, to encourage their use and sustainable development.”
For further information on the permitting process in Mexico, please visit the SEMARNAT website at www.semarnat.gob.mx.
About Goldgroup
Goldgroup is a well-funded Canadian-based gold production, development, and exploration Company with significant upside in a portfolio of projects in Mexico, including its flagship 100%-owned advanced stage gold development project Caballo Blanco in the state of Veracruz, and the 50%-owned high grade gold exploration project San José de Gracia in the state of Sinaloa. The Company also operates its 100%-owned Cerro Colorado gold mine in the state of Sonora.
Goldgroup remains in a flexible financial position with a strong cash balance, no debt and no gold hedging. The Company is led by a team of highly successful and seasoned individuals with extensive expertise in mine development, corporate finance, and exploration in Mexico. Goldgroup’s mission is to increase gold production, mineral resources, profitability and cash flow, building a leading gold producer in Mexico.
For further information on Goldgroup, please visit www.goldgroupmining.com
On behalf of the Board of Directors
Keith Piggott, President & CEO
Tel: 604-682-1943
Stephanie Batory, Investor Relations
Toll Free: 1-877-655-ozAu (6928)
