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

P a g e | 23Photo 2. Typical ‘vuggy silica’ alteration with gold mineralization – La Paila area, Northern Zone (Photo - Cuttle)7.2.2 Highway Zone High-Sulphidation Epithermal Gold TargetThis area is roughly 3kms by 4kms in size and is located along the eastern edge of the Caballo BlancoProperty where road cuts for the Pan American Highway first exposed strong argillic alteration and smallquartz veins that form part of the original discovery in 1995.Alteration of the local dacitic tuffs and volcaniclastic host rock is very similar to the Northern Zone,located approximately 10 kilometres to the north northwest. Various geophysical and geochemicalsurveys suggest that high resistivity anomalies combined with extensive silica and silica-clay alterationcoincide with the inner ‘haloes’ of a high-sulphidation epithermal system.Several areas of vuggy silica alteration have been identified by geophysical and geological means in thesouthern area of the Highway Zone however the area is large and remains a valid exploration target forthe future. Encouraging drill core assays from a hole collared in ‘flanking’ clay alteration zonesintersected several gold bearing zones grading up to 1.42 g/t Au over 6 metres at the bottom of the hole.Examples like these and other isolated resistivity anomalies approximately two kilometres to the north ofthis drilling suggest significant potential remains open for additional work.Goldgroup Mining Inc.Caballo Blanco Project - La Paila Resource update Feb, 2012