ni 43-101 technical report - caballo blanco project - Goldgroup Mining

P a g e | 15Pursuant to a memorandum of agreement among Almaden Minerals Ltd., the Company and NGExResources Inc. dated February 5, 2010, the area defined in Table 2 was transferred to a new entity (the “ElCobre Joint Venture”) owned 60% by Almaden Minerals and 40% by the Company. The new entityholds a 100% interest in the area and is operated by Almaden Minerals.Table 2. The “El Cobre Joint Venture” BoundariesCorner point East UTM – Nad 27 North UTM – Nad 271 761525 21790002 763000 21790003 767000 21750004 767000 21671725 761525 2167172In October, 2011 Goldgroup completed the acquisition of the remaining 30% interest in the CaballoBlanco project held by Almaden Minerals Ltd. ("Almaden"). Goldgroup now owns 100% of the CaballoBlanco project.The aggregate consideration paid by Goldgroup to Almaden in connection with the transaction consistedof: US$2,500,000 in cash; 7,000,000 Goldgroup common shares at closing; the right to receive up to anadditional 7,000,000 Goldgroup common shares upon the achievement of certain project milestones(1,000,000 common shares upon commencement of commercial production, 2,000,000 common sharesupon measured and indicated resources, including cumulative production, reaching 2,000,000 ounces ofgold, 2,000,000 common shares upon measured, indicated and inferred resources, including cumulativeproduction, reaching 5,000,000 ounces of gold and 2,000,000 common shares upon measured, indicatedand inferred resources, including cumulative production, reaching 10,000,000 ounces of gold); a 1.5% netsmelter return royalty; and the transfer of the Company's 40% interest in the El Cobre property.Since the last qualifying report in March, 2010 on Caballo Blanco, Goldgroup has purchased surfacerights from eight land owners, signed rental agreements with five land owners and is in the process ofbuying or leasing four other land parcels. These areas lie within the Northern Zone area including LaPaila.Originally, NGEx Resources Inc., through its wholly owned subsidiary Minera Cardel S.A de C.V hadsigned ‘land entry’ agreements with at least five private individuals that claim legal title to surface rightsinside the Caballo Blanco claim block. These agreements include a yearly payment for access to theirlands as well as additional compensation for any disturbance the company may cause from theCompany’s geological surveying, road building and/or drilling activity. Legal rights to these lands havenot been verified by the authors however it is understood these agreements remain in good standing forthe Goldgroup's ongoing exploration and development work during and beyond 2012.There are no environmental liabilities known to the authors on the Caballo Blanco property.Goldgroup Mining Inc.Caballo Blanco Project - La Paila Resource update Feb, 2012