Announcement • Jun 20
Goldgroup Mining Inc. Commences 24,000 Metre Diamond Drilling Program At San Francisco Gold Project
Goldgroup Mining Inc. has commenced a 24,000-metre diamond core drilling program at its 100% owned San Francisco gold project in Sonora, Mexico. This is the first new drilling program at the San Francisco project in many years and is designed to optimize the resource model and provide additional technical data in preparation for the re-start of gold production, targeted for the end of 2026 or early 2027. The drill program is expected to be completed in the third quarter of 2026. The budget for the program is estimated at approximately USD 8 million and funded in-house. The San Francisco project is fully permitted for a rapid restart of mining operations and is comprised of two open pits together with heap leach processing facilities and associated infrastructure. It is a robust project with significant gold resources and strong upside in terms of optimized development and multiple, large-scale exploration targets. With a solid foundation of Measured & Indicated resources of an estimated 1.2 million oz gold (NI 43-101 Technical Report dated May 1, 2026), the Company intends to aggressively explore these targets in a subsequent drilling campaign focused on exploration. Together with the Company’s producing Cerro Prieto heap leach gold mine in Sonora, the San Francisco project is expected to position Goldgroup on a fast-track growth path. In addition, the Company is advancing the proposed business combination with Gold Resource Corporation which holds a 100% interest in the producing Don David gold mine in Oaxaca, Mexico as well as the Back Forty gold/silver development project in Michigan, USA. 1 M&I resources as outlined in a technical report dated May 1, 2026 entitled “NI 43-101 Technical Report for the San Francisco Project, Sonora, Mexico” with an effective date of April 30, 2026 prepared by Micon International Limited for Goldgroup Mining Inc. authored by William J. Lewis, B.Sc., P.Geo., Richard M. Gowans, P.Eng., and Tudorel Ciuculescu, B.Sc., M.Sc., P. Geo. Resources were estimated for San Francisco and La Chicharra a gold price of USD 3,500/oz, recovery from 54.5% to 74.4% (64% average recovery), open pit mining cost of USD 2.69/t, processing costs of USD 5.1/t, general and administration cost of USD 1.0/t; for North Pit a gold price of USD 3,500/oz, recovery from 54.5% to 73% (67% average recovery), open pit mining cost of USD 2.69/t, processing costs of USD 5.1/t, general and administration cost of USD 1.0/t. The technical contents of this news release have been reviewed and approved by Craig Gibson, PhD, CPG, an independent qualified person under NI 43-101.
