MEDIA RELEASE PR37298
Goldgroup to Acquire NGEx's Option to Earn a 70% Interest in the Caballo Blanco Gold Property
VANCOUVER, Nov. 25 /CNW-AsiaNet/ --
Goldgroup Resources Inc. (the "Company" or "Goldgroup") is pleased to announce the Company has
entered into a Share Purchase Agreement (the "Agreement") with NGEx Resources Inc. ("NGEx"), the Lundin
Group's primary exploration company, to acquire NGEx's 70% earnable interest in the Caballo Blanco Gold
Project located in Mexico, for CDN$15 million, comprised of staged cash payments totaling $6 million and 9
million shares(the "Consideration Shares") of Goldgroup at a deemed price of $1.00 per share. Goldgroup is
seeking to complete a going public event which will
result in a listing of its shares. After the issuance of the Consideration
Shares, NGEx will own 19.6% of Goldgroup's issued shares. In addition, and
pursuant to the Agreement, NGEx will receive a 1.5% net smelter return royalty
and, upon the project reaching commercial production, shall receive a one-time
advance royalty payment in the amount of CDN$5.0 million.
Goldgroup's seasoned management team believes Caballo Blanco has the
potential to fast track to production of approximately 75,000 ounces gold per
annum with relatively low cash cost of production. With Caballo Blanco and its
two other near-term production properties, El Porvenir and San Jose de Gracia,
Goldgroup is positioning itself as an aggressive player in the Mexican gold
arena.
About Caballo Blanco
Caballo Blanco is in the State of Veracruz, Mexico. The property was
optioned to Canadian Gold Hunter Corp., (now renamed NGEx), by Almaden
Minerals Ltd. The concession area is 15,000 hectares covering a large
mineralized system with a multitude of gold and gold-copper anomalies. It is a
short distance off the main highway, 70 kilometres north of Veracruz, one of
Mexico's principal ports. It is very accessible and has power, water and
infrastructure nearby.
In the northern part of the concession there is a giant ring structure
approximately 3 kilometres in diameter, indicated by a magnetic anomaly, and
around this are five large silica caps forming 600-metre-high hills. One of
these is the La Paila anomaly, which is presently indicated to be
approximately 900 metres by 450 metres in size. NGEx has drilled 32 diamond
drill holes, the deepest being to a depth of 334 metres. The weathering
profile is deeper than this, as all 32 holes are oxidized.
There is no official NI 43-101 resource yet for the Caballo Blanco
project but Goldgroup has commissioned Jim F. Cuttle, B.Sc., P. Geo. to
prepare a NI 43-101 compliant technical report. Initial drilling data
indicates significant gold mineralization. The diamond drill hole
intersections of gold are long, the longest being 216 metres (at) 0.6 g/t Au
and the highest being 94.5 metres (at) 2.09 g/t Au. The drill lines are
approximately 50 metres apart. Goldgroup management believes this deposit has
significant potential as it appears to be open on three sides. There is also
considerable exploration potential to increase ounces in the other four
anomalies of the northern ring structure as well as in numerous anomalies in
the concession area.
About Goldgroup
Goldgroup's mission is to become a premier gold producer in Mexico by
organic growth and through mergers and acquisitions. Goldgroup is led by a
team of highly successful and seasoned individuals with extensive expertise in
Goldgroup is a private company and is not listed on a securities
exchange. The statements made about the Caballo Blanco Gold Project reflect
the opinions of Goldgroup management and not those of NGEx or Almaden. Neither
the TSX, the TSX Venture Exchange nor their Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) has reviewed
or accepts responsibility for the adequacy or accuracy of this release. The
foregoing information contains forward-looking statements relating to the
future performance of Goldgroup Resources Inc. Forward-looking statements,
specifically those concerning future performance, are subject to certain risks
and uncertainties including the risk that the indicative results of mineral
exploration activities that have been undertaken to date could differ from the
results of future exploration and mining activities, and actual results may
differ materially. These risks and uncertainties will be detailed in any
future filings submitted by the Company with the appropriate securities
commissions.
SOURCE: Goldgroup Resources Inc.
CONTACT: Keith Piggott
President & CEO
+1 (604) 608-0834
Gregg Sedun
Executive Chairman
+1 (604) 345-6642
David Fry
Corporate Development
+1 (778) 330-2759
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