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

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P a g e | 61. SUMMARYThis independent technical report was prepared for Goldgroup Mining Inc. (“Goldgroup”) to document anupdated NI 43-101 compliant mineral resource estimate on the La Paila zone located in the north portionof the Company's Caballo Blanco property, Veracruz, Mexico.The Caballo Blanco property is located next to the Gulf of Mexico approximately sixty five kilometres bypaved road north northwest of the city of Veracruz in the state of Veracruz, Mexico. The propertyconsists of fourteen mineral claims covering an area of 54,732 hectares centered at Longitude 96˚ 27’30” West and Latitude 19˚ 40’ 44” North.In October, 2011 Goldgroup completed the acquisition of the remaining 30% interest in the CaballoBlanco property held by Almaden Minerals Ltd. ("Almaden"). Goldgroup currently owns 100% of theCaballo Blanco 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.The Caballo Blanco property lies at the eastern end of the Trans Mexican Volcanic Belt and is underlainby sub-aerial basalts, andesites and diorite dykes of Miocene age covered by a sequence of felsic quartztuffs, andesitic ‘dome’ complexes, volcaniclastics and younger intrusive dacitic plugs. Capping thisvolcanic package are Pliocene alkaline basalt flows that are commonly well preserved as small flathighland plateaus.A variety of geophysical, geochemical and geological surveys have been extremely useful in identifyingdrill targets throughout the property; most importantly, airborne magnetics, induced polarizationresistivity anomalies, clay alteration haloes identified by TerraSpec ® spectrometry, mineralized surfacerock geochemistry and detailed geological and structural mapping. These surveys will remain an integralpart of any future exploration program at Caballo Blanco.Two large areas of epithermal gold mineralization have been discovered within the current CaballoBlanco property, referred to as the Northern Zone and Highway Zone. Both are prominent high–sulphidation epithermal gold prospects that occur within extensive areas of clay and silica alteration.The discovery of gold mineralization at La Paila in the Northern Zone is relatively new for this region ofMexico. The gold is very fine and occurs within a vuggy and brecciated silica alteration of an originalandesite host rock in the upper levels of the surrounding epithermal system. The elongate and silicifiedGoldgroup Mining Inc.Caballo Blanco Project - La Paila Resource update Feb, 2012
P a g e | 7gold rich mineralization at La Paila likely formed from fluid rising along a north trending fault structurewell above a deeper intrusive ‘heat source’. Similar silica and clay alteration zones have been recognizedat La Cruz and the Highway Zone that lie along a north-south linear trend over a distance greater thannine kilometres. La Paila, located on the north end of this trend, contains significant gold mineralizationwith drill intercepts of 2.194 grams per tonne gold over 89.91 metres (08CDN-04) and 0.584 grams pertonne gold over 216.41 metres (07CBN-02). La Paila is the subject of an updated resource estimationdescribed in this report.Regionally in the Northern Zone of the Caballo Blanco property, the La Paila gold occurrence is locatedon the northern portion of a large ‘magnetic high’ ring structure that measures approximately threekilometres in diameter. At least four other resistivity high anomalies here, with similar silica alteration toLa Paila, are identified along the inner flanks of this magnetic feature.A total of one hundred and eighty one core holes and thirty six reverse circulation holes have been drilledsince the discovery of gold at Caballo Blanco including the neighbouring Central Grid Zone now owned100% by Almaden Minerals. This report documents drill results since the completion of last NI 43-101 byCuttle and Giroux, March 2010. This includes 142 new drill holes (10CBRC-43 through 11CBN-184),approximately 100 line kilometres of 3 dimensional induced polarization (IP) and 123 metres ofunderground development in the north central portion of the La Paila mineralized body.In 2010/2011, Goldgroup targeted seven specific areas to drill within the Northern Zone of the CaballoBlanco Property. This ongoing drill program continues to identify the extents of the low-grade bulkmineable gold at La Paila and other areas in the Northern Zone. The drill holes at La Paila were collaredalong 50 metre and 100 metre sections extending over a horizontal distance of 900 metres to the north,380 metres east and extend to vertical depths of close to100 metres above sea level (over 400 metresdeep). The vuggy silica breccia hosting the gold mineralization outcrops at surface in the north end of theoccurrence and plunges gently to the south. Block faulting is common.As of January 4, 2012 Goldgroup had driven a 123 metre long 3 metre by 3 metre underground accessdrift into the north central portion of the La Paila mineralized body. This is a portion of the plannedunderground development which is designed to give more detailed geological information onmineralization controls and also to provide more material for large ongoing column leach tests. The wallsof this new underground access have been chip sampled, however laboratory results and detailedgeological mapping were not available during the Authors' property visit.A total of twenty five column tests have been completed to date on bulk surface sample and reversecirculation drill cuttings showing gold recoveries from 76% to 94% based on atomic absorption analysisof the recovered solution and a final fire assay of the column residue. Leach times have been run for anaverage of 40 days and average cyanide and lime consumptions are low at 0.14kg and 1.6kg per tonne ofsample respectively.The La Paila zone demonstrates good continuity from section to section and several areas remain open fordrill testing especially along the east, west and southern portions of the current block model. Furtherdrilling will not only improve the sample density of the current resource at La Paila but may expand onother significant and partly ‘isolated’ gold intercepts found beside and below the relatively flat lyingmineralized body.Goldgroup Mining Inc.Caballo Blanco Project - La Paila Resource update Feb, 2012
Page 3 and 4: P a g e | 313. MINERAL PROCESSING A
Page 5: P a g e | 5Table # LIST OF TABLES P
Page 9 and 10: P a g e | 92. INTRODUCTIONThis tech
Page 11 and 12: P a g e | 114. PROPERTY LOCATION AN
Page 13 and 14: P a g e | 13Fig. 2 Veracruz State L
Page 15 and 16: P a g e | 15Pursuant to a memorandu
Page 18 and 19: P a g e | 186.1 Resource HistoryOne
Page 21 and 22: P a g e | 21Fig. 4. Regional Geolog
Page 23: P a g e | 23Photo 2. Typical ‘vug
Page 27 and 28: P a g e | 27Fig. 7. La Paila Geolog
Page 29 and 30: P a g e | 299. EXPLORATIONWork on t
Page 31 and 32: P a g e | 31completed on 100 metre
Page 33 and 34: P a g e | 33Fig. 10. New Induced Po
Page 35 and 36: Page | 35Table 3: Areas drilled in
Page 37 and 38: P a g e | 37HOLE_ID East_27/14 Nort
Page 39 and 40: P a g e | 39HOLE_ID East_27/14 Nort
Page 41 and 42: P a g e | 41Fig. 11. 2010-2011 Dril
Page 43 and 44: P a g e | 4311.3 Sample Security -
Page 45 and 46: P a g e | 4512. DATA VERIFICATION12
Page 47 and 48: P a g e | 4713. MINERAL PROCESSING
Page 49 and 50: P a g e | 49A total of twenty five
Page 51 and 52: P a g e | 51Fig. 13. Isometric view
Page 53 and 54: P a g e | 5314.3 VariographyPairwis
Page 55 and 56: P a g e | 55range. For blocks not e
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P a g e | 57allow the meaningful ap
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P a g e | 59Table 19: Inferred Reso
Page 61 and 62:
10511512513514515516517518519520521
Page 63 and 64:
P a g e | 6315. ADJACENT PROPERTIES
Page 65 and 66:
P a g e | 65A total of twenty five
Page 67 and 68:
P a g e | 6719. DATE AND SIGNATURE
Page 69 and 70:
P a g e | 69I, G.H. Giroux, of 982
Page 71 and 72:
P a g e | 71APPENDIX IList of Drill
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P a g e | 73HOLEEASTINGWGS 84/14NOR
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P a g e | 75HOLEEASTINGWGS 84/14NOR
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P a g e | 77Goldgroup Mining Inc.Ca
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P a g e | 86Hole NumberZone Rock De
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P a g e | 92Zone Rock Depth Sample
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P a g e | 94HOLE_ID x_27/14 y_27/14
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P a g e | 96HOLE_ID x_27/14 y_27/14
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P a g e | 98HOLE_ID x_27/14 y_27/14
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P a g e | 100APPENDIX VSelected Dri
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P a g e | 102Drill Hole Mineralizat
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P a g e | 104Drill Hole Mineralizat
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P a g e | 106Goldgroup Mining Inc.C
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ni 43-101 technical report - caballo blanco project - Goldgroup Mining

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