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

P a g e | 299. EXPLORATIONWork on the original Caballo Blanco property had outlined at least three large areas of interest since theinitial discovery of gold at the Highway Zone in 1995. In the north and central part of the property, twolarge areas of high-sulphidation epithermal alteration have been discovered, locally named the NorthernZone (4kms by 5kms in area) and the Highway Zone (4kms by 2kms in area). In the southwest of theproperty and currently not part of Goldgroup's claim holdings, the Central Grid area hosts what appear tobe at least two porphyry copper-gold prospects (Pedrero, Porvenir). These two porphyry prospects likelyformed similar ‘high level’ argillic and silicic haloes and caps to the Northern and Highway zones. Thedegree of erosion here is deeper, and likely reveals the underlying porphyry intrusive plugs with stockworkcopper-gold mineralization and associated alteration in the host rock.From 1995 to 2005 Almaden Minerals Ltd, Noranda and Comaplex Minerals (all through MineraGavilán) conducted a variety of surveys including an airborne magnetic / radiometric survey in 1997 (byAerodat) ,extensive geochemical soil and rock sampling, induced polarization resistivity and chargeability(by Marc Beaupre Geophysics) and detailed geological mapping surveys (in house consultants). Followup on anomalies developed from these surveys led to the drilling of 34 holes (6446 metres) in all threeareas described above. Contractors for this drilling were Minera Gavilán and Energold de Mexico.More recently from 2006 to 2009 Canadian Gold Hunter through Minera Cardel completed an aerialphotographic survey on the northern two thirds of the Caballo Blanco property and during 2008, thegeophysics department of the Servicio Geológico de Mexico (SGM) completed a helicopter-bornemagnetic and radiometric survey (60-metre instrument terrain clearance) over the northern half of theproperty. The survey overlapped by three kilometres an earlier airborne magnetic, and radiometric surveycompleted by Aerodat over the southern half of the claims from 1997. Minera Cardel continued to collectsoil and rock samples and also improve upon previous geological mapping that now covers most of theproperty area.New road construction was completed to gain access to Cerro La Paila as well as the northern portion ofthe Central Grid Zone to support on-going ground surveys and drilling and up-grading old roads to accessEl Porvenir area. Minera Cardel drilled a total of 42 core holes, concentrating primarily on testing forepithermal gold mineralization at La Paila, Bandera and La Cruz areas in the Northern Zone as well astesting for porphyry mineralization twelve kilometres to the southwest at Pedrero and Porvenir areas inthe Central Grid Zone. Drill contractors included Minera Gavilán, Energold de Mexico and MajorDrilling de Mexico.Since the last NI 43-101 report by Cuttle and Giroux in March, 2010 Goldgroup has drilled an additional142 holes (19 RC, 123 core), including holes 10CBRC-43 through 11CBN-184. The Company has alsocompleted detailed 3 dimensional induced polarization (IP) surveys as infill and extensions to previoussurveys previously completed by Almaden and Comaplex Minerals and at the time of this report hasdriven a 123 metre long 3m by 3m underground access route into the north central portion of the La Pailamineralized body.Goldgroup Mining Inc.Caballo Blanco Project - La Paila Resource update Feb, 2012