Quantcast
Last updated on April 17, 2014 at 11:49 EDT

Goldgroup Provides Update on Change of Soil Use Permit Status at Caballo Blanco

May 23, 2012

VANCOUVER, May 23, 2012 /PRNewswire/ – Goldgroup Mining Inc. (“Goldgroup” or
the “Company”) (TSX:GGA) has had its Change of Soil Use Permit, also
known as the “Estudio Técnico Justificativo para Cambio de Uso de
Suelo” (“ETJ”), returned to the Company, for its 100% owned Caballo
Blanco gold project, from the Ministry of Environment and Natural
Resources, also known as the Secretaría de Medio Ambiente y Recurso
Naturales (“SEMARNAT”).  Goldgroup submitted the ETJ to SEMARNAT, which
is the federal environmental regulatory agency in Mexico, on December
16, 2011. The ETJ is evaluated by the regional office of SEMARNAT in
Veracruz.  Comments by SEMARNAT request that the Company provide
further details on the following information for its ETJ application:

        --  Rescue programs for protected flora species
        --  Environmental mitigation measures for the project and how
            Goldgroup will measure its success
        --  Ecosystems affected by the use of environmental services
            (water, soil, air, etc.) required for the project
        --  Economic and social benefits of the project

SEMARNAT stated that Goldgroup is able to resubmit the ETJ application
after addressing the above issues. Accordingly, Goldgroup will resubmit
the enhanced ETJ application on a timely basisWithin the resubmitted ETJ application, Goldgroup will also include all
information on additional land that has been acquired since the time of
the initial filing of the ETJ application.

The Company is committed to implementing appropriate designs and
measures at Caballo Blanco to ensure the protection of the environment
and to create a sustainable mining operation that is expected to
benefit all stakeholders, including local and regional communities.

Status of Environmental Impact Statement Permitting Application

Goldgroup requires two independent environmental permits in order to
operate the Caballo Blanco project; the Environmental Impact Statement
(“EIS”) and the ETJ. The EIS and ETJ are required for the commencement
of construction at Caballo Blanco.

The EIS application was submitted by Goldgroup to SERMANAT on December
15, 2011.  Formal comments 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.

Goldgroup will provide a detailed written response for the EIS to
SEMARNAT to sufficiently satisfy their queries within the required 60
working day response time. Following the receipt of the written
response from Goldgroup, SEMARNAT will evaluate the application before
making a decision on the permit. This form of federal regulatory
response is standard procedure in the environmental permitting process
in the majority of established mining jurisdictions, including Mexico.

The timing of the EIS and ETJ permit approvals is currently anticipated
to be in the third quarter of 2012, however, extensions by SEMARNAT may
occur. Based on initial results from the PEA, management estimates the
Caballo Blanco project to require approximately nine months of
construction time from the date of anticipated approval of the EIS, ETJ
and related permits.

Goldgroup would like to note that it had incorrectly stated the EIS
application submission date to SEMARNAT as December 16, 2011 instead of
December 15, 2011, in the Company’s press release dated March 19, 2012.

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 a
50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100%
of the high-grade gold exploration project, San José de Gracia located
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.

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 considered “forward-looking information” (within the meaning of
applicable Canadian securities law) and “forward-looking statements”
(within the meaning of the United States Private Securities Litigation
Reform Act of 1995). These statements relate to analyses and other
information that are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions of management. Actual
results could differ materially from the conclusions, forecasts and
projections contained in such forward-looking information. 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 information is
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 information, and are
developed based on assumptions about such risks, uncertainties and
other factors including, without limitation: uncertainties related to
actual capital costs, operating costs and expenditures, production
schedules and economic returns from Goldgroup’s projects; uncertainties
associated with development activities; uncertainties inherent in the
estimation of mineral resources and precious metal recoveries; risks
related to the continued operation of the Cerro Colorado mine without a
current economic analysis; risks related to the planned expansion of
the Cerro Colorado mine; uncertainties related to current global
economic conditions; fluctuations in precious and base metal prices;
uncertainties related to the availability of future financing;
potential difficulties with joint venture partners; risks that
Goldgroup’s title to its property could be challenged; political and
country risk; risks associated with Goldgroup being subject to
government regulation; risks associated with surface rights;
environmental risks; Goldgroup’s need to attract and retain qualified
personnel; risks associated with operating hazards at the Cerro
Colorado mine; risks associated with potential conflicts of interest;
Goldgroup’s lack of experience in overseeing the construction of a
mining project; risks related to the integration of businesses and
assets acquired by Goldgroup; uncertainties related to the
competitiveness of the mining industry; risk associated with theft;
risk of water shortages and risks associated with competition for
water; uninsured risks and inadequate insurance coverage; risks
associated with potential legal proceedings; risks associated with
community relations; outside contractor risks; risks related to
archaeological sites; foreign currency risks; risks associated with
security and human rights; and risks related to the need for
reclamation activities on Goldgroup’s properties, as well as the risk
factors disclosed in Goldgroup’s Annual Information Form and MD&A. Any
and 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 is 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 as ay be required by, and in accordance with,
applicable securities laws.

SOURCE Goldgroup Mining Inc.


Source: PR Newswire