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Goldgroup Drills Additional Gold Intercepts at the La Paila Zone at Caballo Blanco and Hires New Vice President, Technical and Project Execution

February 10, 2012

DDH 11 CBN 172: 107.90 m @ 0.94 g/t Au
DDH 11 CBN 167: 76.00 m @ 0.98 g/t Au
DDH 11 CBN 166: 40.30 m @ 0.94 g/t Au

VANCOUVER, Feb. 10, 2012 /PRNewswire/ – Goldgroup Mining Inc. (“Goldgroup” or
the “Company”) (TSX: GGA) is pleased to announce that additional
diamond drill holes at the Company’s 100% wholly owned Caballo Blanco
gold project in Veracruz, Mexico have yielded significant gold
intercepts. All diamond drill holes encountered completely oxidized,
vuggy and siliceous rock occurring within and peripheral to the La
Paila Zone, which lies within the Northern Zone. 16 of the 19 drill
holes reported below (see Tables 1 and 2, and the drill hole location
map) contain intervals above the established cut-off grade and are part
of the ongoing drill program intended to increase mineral resources at
Caballo Blanco. Of the 19 drill holes reported below, seven of these
drill holes further define the La Paila mineral resource, and the
remaining 12 drill holes were drilled to expand the southwestern flank
of the La Paila Zone. The zone currently remains open to the south and
southwest.

Keith Piggott, President and CEO of Goldgroup, stated, “We are pleased
with these new diamond drill results, which continue to confirm, define
and expand the La Paila Zone.  As we continue to receive positive
results from our 2011 drill program and conduct our additional 30,000
metre drill program in 2012, we expect to increase resources at the La
Paila Zone.  Furthermore, Management expects to identify new zones of
mineralization in both the Northern Zone and Highway Zone through its
2012 diamond drill program.”

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.

Table 1.  Drill-Hole Results for the Caballo Blanco Project, Mexico

     _______________________________________________________
    |Drill Hole |Mineralization                             |
    |           |___________________________________________|
    |           |From (m)|To (m)|Interval (m)|Au grade (g/t)|
    |___________|________|______|____________|______________|
    |11 CBN 160 |        |      |            |        nsv   |
    |___________|________|______|____________|______________|
    |11 CBN 161 |  99.55 |111.55|     12.00  |       0.29   |
    |___________|________|______|____________|______________|
    |      and  | 121.55 |127.55|      6.00  |       0.51   |
    |___________|________|______|____________|______________|
    |      and  | 135.55 |139.55|      4.00  |       0.31   |
    |___________|________|______|____________|______________|
    |      and  | 143.55 |155.55|     12.00  |       0.26   |
    |___________|________|______|____________|______________|
    |      and  | 159.55 |171.55|     12.00  |       0.32   |
    |___________|________|______|____________|______________|
    |      and  | 179.55 |185.55|      6.00  |       0.24   |
    |___________|________|______|____________|______________|
    |11 CBN 162 |  91.95 |95.95 |      4.00  |       0.76   |
    |___________|________|______|____________|______________|
    |11 CBN 163 | 118.40 |123.90|      5.50  |       0.34   |
    |___________|________|______|____________|______________|
    |      and  | 246.50 |250.50|      4.00  |       0.34   |
    |___________|________|______|____________|______________|
    |      and  | 332.50 |346.50|     14.00  |       1.00   |
    |___________|________|______|____________|______________|
    |11 CBN 164 |        |      |            |        nsv   |
    |___________|________|______|____________|______________|
    |11 CBN 165 | 202.18 |218.18|     16.00  |       0.49   |
    |___________|________|______|____________|______________|
    |      and  | 288.18 |304.18|     16.00  |       0.29   |
    |___________|________|______|____________|______________|
    |      and  | 318.18 |340.18|     22.00  |       0.57   |
    |___________|________|______|____________|______________|
    |11 CBN 166 |  71.35 |111.65|     40.30  |       0.94   |
    |___________|________|______|____________|______________|
    |      and  | 132.45 |136.85|      4.40  |       0.25   |
    |___________|________|______|____________|______________|
    |      and  | 215.13 |223.40|      8.27  |       0.57   |
    |___________|________|______|____________|______________|
    |      and  | 271.95 |275.95|      4.00  |       0.25   |
    |___________|________|______|____________|______________|
    |11 CBN 167 | 146.22 |222.22|     76.00  |       0.98   |
    |___________|________|______|____________|______________|
    |11 CBN 168 | 204.80 |208.80|      4.00  |       0.38   |
    |___________|________|______|____________|______________|
    |      and  | 212.80 |226.80|     14.00  |       0.53   |
    |___________|________|______|____________|______________|
    |      and  | 310.80 |314.80|      4.00  |       0.23   |
    |___________|________|______|____________|______________|
    |      and  | 316.80 |320.80|      4.00  |       0.25   |
    |___________|________|______|____________|______________|
    |      and  | 352.80 |357.70|      4.90  |       0.37   |
    |___________|________|______|____________|______________|
    |11 CBN 169 | 134.00 |152.90|     18.90  |       0.60   |
    |___________|________|______|____________|______________|
    |      and  | 248.72 |254.81|      6.09  |       0.28   |
    |___________|________|______|____________|______________|
    |11 CBN 170 | 227.62 |245.62|     18.00  |       0.38   |
    |___________|________|______|____________|______________|
    |11 CBN 171 | 217.50 |233.50|     16.00  |       0.40   |
    |___________|________|______|____________|______________|
    |11 CBN 172 |  97.80 |101.80|      4.00  |       0.24   |
    |___________|________|______|____________|______________|
    |      and  | 107.80 |111.80|      4.00  |       0.28   |
    |___________|________|______|____________|______________|
    |      and  | 119.80 |227.70|    107.90  |       0.94   |
    |___________|________|______|____________|______________|
    |      and  | 242.70 |268.85|     26.15  |       0.39   |
    |___________|________|______|____________|______________|
    |11 CBN 173 |        |      |            |        nsv   |
    |___________|________|______|____________|______________|
    |11 CBN 174 | 329.25 |341.25|     12.00  |       0.29   |
    |___________|________|______|____________|______________|
    |11 CBN 175 | 177.50 |182.78|      5.28  |       0.37   |
    |___________|________|______|____________|______________|
    |      and  | 189.59 |193.59|      4.00  |       0.43   |
    |___________|________|______|____________|______________|
    |      and  | 195.59 |227.59|     32.00  |       0.28   |
    |___________|________|______|____________|______________|
    |      and  | 253.50 |273.50|     20.00  |       0.23   |
    |___________|________|______|____________|______________|
    |11 CBN 176 |  52.90 |72.90 |     20.00  |       0.57   |
    |___________|________|______|____________|______________|
    |      and  |  92.90 |137.40|     44.50  |       0.54   |
    |___________|________|______|____________|______________|
    |      and  | 180.80 |184.80|      4.00  |       0.56   |
    |___________|________|______|____________|______________|
    |11 CBN 177 | 216.85 |226.85|     10.00  |       1.14   |
    |___________|________|______|____________|______________|
    |      and  | 230.85 |252.85|     22.00  |       0.26   |
    |___________|________|______|____________|______________|
    |      and  | 266.85 |270.85|      4.00  |       0.45   |
    |___________|________|______|____________|______________|
    |11 CBN 178 |  30.00 |38.00 |      8.00  |       0.43   |
    |___________|________|______|____________|______________|

For a drill hole location map, click here.

Of the holes presented above, 16 intersected gold mineralization in
excess of the 0.2 g/t Au cut-off grade used in the current Caballo
Blanco NI 43-101 technical report dated February 28, 2011, which is
available on SEDAR. However, it is expected that as a result of
favourable leach kinetics, recovery and ease of mining, a lower cut-off
grade may be applicable.

The results presented today are part of the 2011 drill program and are
intended to be used in the preparation of the anticipated updated NI
43-101 mineral resource estimate. Drill holes 11 CBN 161, 162, 163,
166, 167, 172 and 176 were all drilled within the main La Paila Zone to
further define the mineral resource. Five of these seven drill holes
encountered mineralized intervals at widths and gold grades comparable
to those used in the initial resource calculation. Drill hole 11 CBN
162 encountered sporadic mineralization above the 0.2 g/t cut off
grade, on the western flank of the main zone.  Drill hole 11 CBN 163
cut sporadic low grade mineralization within a zone of massive silica
alteration in the central portion of the main zone. Drill holes 11 CBN
160, 164, 165, 168, 169-171, 173-175, 177 and 178 were all collared on
the western and southwestern flank of the La Paila Zone and extend the
mineralisation a further 100m down plunge to the southwest.  A complete
summary of the assay results from diamond drill holes DDH 11 CBN 160 to
DDH 11 CBN 178, as well as a drill-hole location map of the La Paila
Zone detailing the relative locations of all historical drill holes
will be posted on the Goldgroup website http://www.goldgroupmining.com/s/projects.asp.

Table 2.  Drill Hole Location Data, Caballo Blanco Project, Mexico

     __________________________________________________________________
    |Drill |East  UTM|North  UTM|Elevation| Azimuth |  Plunge | Total  |
    | Hole |  Coord  |  Coord   |         |         |         | Length |
    |______|_________|__________|_________|_________|_________|________|
    |      |(metres) | (metres) |(m.a.s.l)|(degrees)|(degrees)|(metres)|
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768118 |  2184150 |   535.7 |     0°  |    -90  |  233.0 |
    | 160  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768350 |  2184703 |   508.3 |    090  |    -45  |  302.7 |
    | 161  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768167 |  2184445 |   484.8 |    270  |    -80  |  305.4 |
    | 162  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768222 |  2184403 |   501.3 |    180  |    -50  |  356.4 |
    | 163  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768070 |  2184151 |   527.4 |      0  |    -90  |  299.0 |
    | 164  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768119 |  2184098 |   510.4 |      0  |    -90  |  367.0 |
    | 165  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768210 |  2184493 |   505.9 |     90  |    -80  |  317.4 |
    | 166  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768350 |  2184700 |   508.5 |    135  |    -45  |  281.3 |
    | 167  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768118 |  2184047 |   500.0 |      0  |    -90  |  363.7 |
    | 168  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768266 |  2184051 |   514.5 |      0  |    -90  |  299.8 |
    | 169  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768225 |  2184050 |   536.5 |      0  |    -90  |  299.6 |
    | 170  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768172 |  2184049 |   505.6 |      0  |    -90  |  322.5 |
    | 171  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768307 |  2184062 |   497.5 |     90  |    -75  |  278.7 |
    | 172  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768067 |  2184099 |   511.4 |      0  |    -90  |  358.0 |
    | 173  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768067 |  2184046 |   502.1 |      0  |    -90  |  361.5 |
    | 174  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768170 |  2183999 |   495.9 |      0  |    -90  |  301.5 |
    | 175  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768308 |  2184062 |   497.5 |     90  |    -50  |  249.9 |
    | 176  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768114 |  2183990 |   484.9 |      0  |    -90  |  388.0 |
    | 177  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|
    |11 CBN|  768021 |  2184103 |   517.3 |      0  |    -90  |  301.5 |
    | 178  |         |          |         |         |         |        |
    |______|_________|__________|_________|_________|_________|________|

m.a.s.l = metres above sea level; Coord = Coordinate; na = not
applicable

About Caballo Blanco

Goldgroup owns 100% of the Caballo Blanco gold project which consists of
a series of fully oxidized gold zones located in the State of Veracruz
in eastern Mexico.  The principal known gold zone at Caballo Blanco is
the La Paila Zone located within a cluster of high-sulphidation
epithermal alteration zones referred to as the Northern Zone.  The
current NI 43-101 mineral resource estimate for the La Paila Zone was
compiled from 32 diamond drill holes totalling approximately 7,000
metres completed by NGEx Resources Inc., prior to Goldgroup’s
acquisition of its interest in the project in November 2009. This
mineral resource estimate consists of 139,000 ounces of gold (6.7
million tonnes grading 0.65 g/t Au) contained in the category of
indicated resources and 517,000 ounces of gold (27.6 million tonnes
grading 0.58 g/t Au) contained in the category of inferred resources.
NGEx Resources Inc. drilled an additional 8 drill holes at the Caballo
Blanco project outside the La Paila Zone.  Subsequently, Goldgroup has
drilled an additional 149 holes in 2010 and 2011, for a total of 189
holes drilled to date at the Caballo Blanco project.

During 2011, Goldgroup completed a 30,000 metre, 120 hole drill program,
of mostly HQ core, centered largely on the La Paila mineralized zone. 
The Company has received assays for all 2010 drill program holes and
111 of the 120 holes drilled in its 2011 program, which are expected to
be used to update the NI 43-101 mineral resource estimate.

Assaying and Qualified Person

After project geologists logged and marked the core, technicians cut the
individual lengths with a diamond saw, then tagged the bags and secured
them with security clips.  The samples were then collected by ALS
Minerals and transported to their Guadalajara preparation facility
where they were dried and crushed to -2mm.  A 250 gram split of the
coarse material was then pulverized to -200 mesh.  The rejects remained
at the prep facility and the pulps were air couriered to ALS Minerals
North Vancouver facility and analyzed for gold by 30g fire assay with
an AA finish.  In addition, a 35 element ICP analysis was conducted on
all samples. A QA/QC program was implemented as part of the sampling
procedure for the drill program.  One standard, one blank or one
duplicate was inserted per group of ten samples sent to the
laboratory.  The information in this news release has been approved by
Marc Simpson, P. Geo., the Company’s Qualified Person under National
Instrument 43-101 standards.

Goldgroup Hires New Vice President, Technical and Project Execution

Goldgroup is also pleased to announced that it has hired Mr. Patrick
Glynn as the Company’s Vice President, Technical and Project Execution.
Mr. Glynn is a graduate metallurgist from the University of the
Witwatersrand in Mineral Processing Engineering.  Mr. Glynn has 35
years of experience in the operation and design of gold, copper, nickel
and PGM’s processing facilities.  He has worked in Zimbabwe, South
Africa, Russia, Australia and Laos providing expertise in mineral
processing and project management.  From December 2009 to January 2012
he held the position of Project Manager for Rosemont Copper Company,
managing a billion dollar project.  Prior to Rosemont Copper Company,
he was the Senior Project Manager at AMEC International on a
multibillion dollar Potash expansion project in Saskatchewan. Mr. Glynn
has also spent a significant part of his career at Bateman Engineering
as a Project Manager for the Sepon gold and copper projects in Laos and
as a mineral processing engineer/manager.

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 Veracruz, and the
50%-owned high grade gold exploration project, San José de Gracia, in
Sinaloa. The Company operates the 100%-owned Cerro Colorado gold mine
in Sonora, Mexico.

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 grow gold production, mineral resources,
profitability and cash flow, building a leading gold producer in
Mexico.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain information contained in this news release, including any
information relating to future financial or operating performance may
be deemed “forward-looking”. All statements in this news release, other
than statements of historical fact, that address events or developments
that Goldgroup expects to occur, are “forward-looking information”.
These statements relate to future events or future performance and
reflect Goldgroup’s expectations regarding the future growth, results
of operations, business prospects and opportunities of Goldgroup. These
forward-looking statements reflect Goldgroup’s current internal
projections, expectations or beliefs and are based on information
currently available to Goldgroup. In some cases forward-looking
information can be identified by terminology such as “may”, “will”,
“should”, “expect”, “intend”, “plan”, “anticipate”, “believe”,
“estimate”, “projects”, “potential”, “scheduled”, “forecast”, “budget”
or the negative of those terms or other comparable terminology. Certain
assumptions have been made regarding the Company’s plans at the Caballo
Blanco project. Many of these assumptions are based on factors and
events that are not within the control of Goldgroup and there is no
assurance they will prove to be correct. Forward-looking statements are
subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to materially
differ from those reflected in the forward-looking statements, and are
developed based on assumptions about such risks, uncertainties and
other factors including, without limitation: fluctuations in precious
and base metal prices; inherent hazards and risks associated with
mining operations; inherent uncertainties associated with mineral
exploration and development activities; uncertainties inherent in the
estimation of mineral reserves and/or resources and precious metal
recoveries; uncertainties related to actual capital costs, operating
costs and expenditures, production schedules and economic returns from
Goldgroup’s projects; uncertainties related to current global financial
conditions; uncertainties related to the availability of future
financing necessary to undertake exploration, development, mining and
processing activities on Goldgroup’s properties; Goldgroup’s
substantial reliance on its Cerro Colorado mine for revenues; risks
related to the planned expansion of the Cerro Colorado mine; risks
related to the continued operation and planned expansion of the Cerro
Colorado mine without a current economic analysis; risks related to the
integration of businesses and assets acquired by Goldgroup;
uncertainties related to the competitiveness of the mining industry;
risks associated with Goldgroup being subject to government regulation,
including changes in law and regulation and risks associated with
Goldgroup’s need for governmental licenses and permits; risks
associated with Goldgroup being subject to extensive environmental laws
and regulations, including a change in regulation; risks that
Goldgroup’s title to its property could be challenged; political and
country risk; risk of water shortages and risks associated with
competition for water; Goldgroup’s need to attract and retain qualified
personnel; increases in off-site transportation and concentrate
processing costs; risks related to the need for reclamation activities
on Goldgroup’s properties, including the nature of reclamation required
and uncertainty of costs estimates related thereto; risks associated
with potential conflicts of interest; risks associated with potential
labour disputes; and risks associated with potential blockades of
mining operations as well as “Risks and Uncertainties” included in the
Annual Information Form and MD&A for Goldgroup available at
www.sedar.com. Forward-looking information is not a guarantee of future performance
and actual results and future events could differ materially from those
discussed in the forward-looking information. All of the
forward-looking information contained in this news release is qualified
by these cautionary statements. Although Goldgroup believes that the
forward-looking information contained in this news release are based on
reasonable assumptions, readers cannot be assured that actual results
will be consistent with such statements. Accordingly, readers are
cautioned against placing undue reliance on forward-looking
information. Goldgroup expressly disclaims any intention or obligation
to update or revise any forward-looking information, whether as a
result of new information, events or otherwise, except in accordance
with applicable securities laws. The potential quantities and grades
disclosed herein are conceptual in nature and there has been
insufficient drilling and exploration to define a mineral resource. It
is uncertain if further drilling and exploration will result in the
target being delineated as a mineral resource.  The true widths of the
intercepts disclosed in this news release are unknown at this time.
 

SOURCE Goldgroup Mining Inc.

PDF with caption: “Caballo Blanco Drill Map”. PDF available at: http://stream1.newswire.ca/media/2012/02/10/20120210_C3076_DOC_EN_9989.pdf


Source: PR Newswire