Summary
Goldgroup Mining Inc. is a Canadian-based gold production, development and exploration company with a specific focus on projects within Mexico. Goldgroup trades on the Toronto Venture Exchange under the ticker symbol GGA and on the OTC under the symbol GGAZF. With their head office located in Vancouver, the GGA has 3 properties in Mexico (one in production and two more at an advanced stage of exploration).
Capital Structure
As of Date : April 23, 2012
Exchange: TSX Venture
Ticker Symbol: GGA
Recent Price: $0.62
52 Week Hi / Low: $1.75 / $0.62
Issued & Outstanding: 130,726,049
Market Capitalization: $81,050,000
Management
Keith Piggott, ACSM, President, C.E.O. & Director
Gregg J. Sedun, LLB, Executive Chairman, Director
John Sutherland, CGA, Vice President & C.F.O
Kevin Sullivan, B.Sc., MAusIMM, Vice President of Exploration
Patrick Glynn, B.Sc., B.Eng,, Vice President of Technical & Projects
Dustin van Doorselaere, B.Sc., B.Eng,, Projects Manager
Francisco Escandon, Geol. Eng., MMSA QP,, Technical Director & Director
Dr. Hans von Michaelis, Ph.D,, Lead Director
Lenard F. Boggio, FCA, CPA,, Director
Corry Silbernagel, PEng., MBA,, Director
Dr. Paul Zweng, M.Sc, Ph.D,, Director
Property Summary
San Jose de Gracia, Sinaloa, Mexico
Goldgroup owns 50 per cent of San Jose de Gracia (SJG) with partner Dynaresource Inc. The site has a Ni 43-101 compliant resource of 147,000 oz Au. indicated and 963,000 oz. Au. inferred. This is a low sulphidation, epithermal-vein system, that has been recognized as “the most significant gold project” by the Mexican state of Sinaloa. The company has drilled an additional 135 holes since the initial resource estimate in July 2009 and the updated resource estimate is based on drilling completed up to Sept 5, 2011. San Jose de Gracia is a historical producer that has yielded high-grade ore.
Cerro Colorado Mine, Sonora, Mexico
Cerro Colorado Mine is a 100-per-cent owned and operated mine of Goldgroup. The mine is currently in production, and yields 20,000 oz. Au. per year. There was a new crushing system installed at Cerro Colorado to improve gold recovery, and there is ongoing exploration on the property to increase the gold resource. Currently, the NI 43-101 resource is 222,000 oz. Au Measured & Indicated, and 121,000 oz. Au Inferred. The resource is sufficient to sustain a five-year mine life, based upon current production levels.
Regional Summary
Mining In Mexico
Mexico is considered to be a politically stable region supportive of mining initiatives. There are several world-class mining operations in Mexico, and the country has a long history as a gold, silver, copper, zinc and coal producer. In 1992, Mexico amended their previously protectionist mining laws to further encourage foreign ownership and investment.
Market Summary
The precious metals market has experienced rapid growth and gold is trading well above historical levels.
Investment Highlights / Risks
Highlights
- Exposure to the lucrative gold market.
- Currently in production.
- Exploration projects are at an advanced stage and near production.
- Up-to-date NI 43-101 Compliant resource estimates.
- Situated in Mexico, which is regarded as politically stable and supportive of mining operations.
- Management team appears to be experienced.
Risks
- Share price is under $2, this could be indicative of a share price which is volatile.
- Gold is currently trading above historical levels, but a drop in the price of gold may have a negative impact on the shares of this company.
Comparable Companies
Cited Information Sources
- Goldgroup Mining Inc. Website
- Goldgroup Mining Inc. Corporate Snapshot
- Sedar Filings for Goldgroup
- Press Releases for Goldgroup