Goldgroup Mining (TSXV:GGA) has made significant strides in its exploration efforts at the Cerro Prieto Gold Mine, focusing on enhancing operations and increasing gold production. Recent exploration successes at the Esperanza Extension and Reyna zones hold the potential to extend the mine’s life by an additional 2-4 years. The reactivation of the Union Pit and the push back of the Centro area also show promise for future production. Exploration efforts south of the Cerro Prieto Shear have discovered new mineralized zones that could develop into significant minable areas.
CEO Ralph Shearing emphasized the potential impact of these discoveries on the mine’s future operations. “We have already increased our life of mine (LOM) with exploration success at the Esperanza zone. We expect advanced exploration of the Esperanza extension and Reyna zone could add 2-5 years to the mine life. Early-stage exploration could add significantly more, though it is too early to estimate the potential increase in mine life.”
Goldgroup Mining is also working to increase efficiency and production at Cerro Prieto. The company plans to double mining production through an expansion of the crushing circuit, which is currently underway. This expansion is expected to increase production from 12,000 ounces to 25,000 ounces of gold annually. Additionally, the company is advancing a plan to re-leach existing ore within the heap leach pads. Mr. Shearing explained the significance of this initiative.
“We are advancing a plan to re-leach existing ore within heap leach pads. We have 8 million tonnes of material with an estimated grade of 0.4%. Metallurgical testing indicates a 35% potential recovery, which could result in an additional 45,000 ounces of recoverable gold. This could add an additional 8-10,000 ounces of annual gold production.”
Goldgroup Mining has hired an experienced metallurgical consultant to conduct site visits and recommend improvements to gold extraction. The company is increasing irrigation by installing slope irrigation and more pumping capacity, and is planning to double the crushing capacity to 4,500 tonnes per day. This comprehensive approach aims to optimize gold production and improve efficiency.
CEO Ralph Shearing highlighted the challenges the company faces and the strategies being implemented to address them. “The main challenges we face are related to the lack of capital to invest in the project, which delays milestones. Our solution is to raise funding through marketing and promoting the company to increase market cap value.”
Goldgroup Mining is also exploring opportunities to partner with other companies to re-leach the 8 million tonnes of material within the existing leach pads. The company plans to complete metallurgical sampling and invite partners to contribute capital equipment to commence the project.
The recent crossing of Goldgroup Mining’s share price above its 200-day moving average has garnered attention. However, CEO of Goldgroup Ralph Shearing cautioned that the stock’s thin trading at the $0.03-04 level makes this milestone less significant. “The recent crossing of the 200-day moving average was essentially meaningless if the price cannot maintain its increase. It does, however, demonstrate that the stock can appreciate in price relatively easily with some success at the project and sustained marketing.”
Goldgroup Mining’s long-term goals for the Cerro Prieto Gold Mine include turning the project into profitability and identifying new resources and reserves to extend the mine life to over 10 years. The company’s experienced management and operations teams, along with officers and directors with past successes in building and restarting profitable gold mines, position Goldgroup for success in its ongoing efforts to enhance Cerro Prieto’s operations and value.
“Our experienced management and operations teams, along with our successful track record in exploration and capital raising, give us a strong foundation to enhance the Cerro Prieto Gold Mine’s operations and value. We are committed to turning this project into a profitable venture and extending its life for many years to come.”
With ongoing exploration and optimization efforts, Goldgroup Mining aims to enhance the Cerro Prieto Gold Mine’s operations, increase gold production, and deliver long-term value to its shareholders. The company’s strategic focus on efficiency and new discoveries highlights its commitment to sustainable growth in the gold mining industry.
