Goldgroup Mining to Start Exploring Cerro Prieto

Canada-based gold mining company Goldgroup Mining announced it commenced an exploration program at its Cerro Prieto gold mine in Sonora. The program includes approximately 6,000m of diamond core drilling, an induced polarization geophysical survey, and surface trenching.

Drilling will focus on the Nuevo Esperanza and Reyna mineralized zones, located near the Esperanza zone, the mine's current production area. The Esperanza zone will also undergo further drilling to explore its northern and western extensions. According to Goldgroup, test drilling is planned for the previously mined South Pit to assess the potential for reactivating mining operations in this area. 

Additionally, mineralized zones 1km south of the mine will be examined through surface trenching and geophysical surveying. Ralph Shearing, CEO, Goldgroup, said the company aims to maximize and optimize the Cerro Prieto mine. He noted that the mine remains central to the company's strategy to become an intermediate gold producer. We intend to maximize and optimize this mine to its very best performance. As our foundational asset, Cerro Prieto will remain central to our strategy as we advance toward becoming a leading intermediate gold producer,” he added.

The Cerro Prieto open-pit gold mine has been in production since 2013 and currently produces approximately 11,500oz of gold annually. The exploration program aims to delineate additional resources to increase annual production. The company is installing a second crushing circuit, with completion expected near the end of April 2025, to increase production to at least 24,000oz/y.

Goldgroup is also conducting final engineering and planning for a re-leaching project of the existing leach pads by the end of 2025, which are expected to contain over 10Mt of crushed mineralized rock, with an estimated grade of 0.40g/t of gold. Internal column leach testing indicates potential recoveries of 40% from previously leached material. The company anticipates releasing capital cost and economic estimates for this project upon completion of an independent engineering study, expected before the end of April 2025.

Goldgroup Parallel Projects

On Mar. 7, 2025, Goldgorup Mining agreed with Candelaria Mining Corporation (CMC) to acquire Minera Apolo, the owner of the Pinos gold project in Zacatecas. To finalize the deal, Goldgroup will settle a loan of approximately US$2.7 million, make two US$89,000 cash payments, and issue 716,667 common shares. This agreement avoids the costs of enforcing the loan, the company says. 

The Pinos project consists of 30 concessions, encompassing 3,816ha. According to EMPRESS Royalty, the project has all permits in place for production and is under development for a 200t/d mining operation, with plans to ramp up to 400t/d within two years of initial production.