Goldgroup Outlines Drilling Strategy at Mexican Mine Assets

Canada-based Goldgroup Mining released an operational and development update following its merger with US-based Gold Resource Corporation. The combined organization is executing exploration and development programs across its asset portfolio in Mexico and the United States.

Goldgroup said that at its 100% owned Don David Mine in Oaxaca, the company has completed over 23,000m of drilling to date. Current operations at the site use six underground drill rigs and one surface drill, targeting both resource expansion and existing resource upgrades. Exploration drilling is scheduled to begin this quarter at the nearby Margaritas target to evaluate high-grade silver epithermal vein mineralization.

In Sonora, Goldgroup Mining is advancing a 24,000m diamond drilling campaign with three drill rigs at the 100% owned San Francisco gold project. The program focuses on confirming geological models to support mine planning ahead of a potential production restart evaluated for the end of the year. The fully permitted asset includes two open pits, heap leach processing facilities, and associated infrastructure.

At the Cerro Prieto project, three drill rigs are active, with two allocated to resource expansion and one conducting confirmatory drilling for an updated mineral resource estimate.

Outside Mexico, the company initiated a feasibility study led by SLR Engineering in May for the Back Forty Project in Michigan, United States, building on the Preliminary Economic Assessment (PEA) completed in 2023. Operational performance at the Don David Mine remains aligned with corporate management expectations, the company says. "We are building a company with multiple avenues for growth. Our priorities are clear: grow our resource base, optimize our operations, advance our development projects and continue pursuing opportunities that strengthen our portfolio and create sustainable shareholder value,” said Allen Palmiere, CEO, Goldgroup. 

Goldgroup, Gold Resource Merger Details

On June 21, 2026, MBN reported that Goldgroup Mining completed its business combination with US-based Gold Resource Corporation, acquiring the entity through a merger with its wholly owned subsidiary, Goldgroup Merger Sub. 

The transaction was executed under an Arrangement Agreement originally dated Jan. 25, 2026, and amended on May 15, 2026. Under the terms of the agreement, shareholders of Gold Resource received 0.3619 common shares of Goldgroup Mining for each share of Gold Resource common stock held. Following the closing on July 17, 2026, Goldgroup Mining began trading on the NYSE American under the ticker symbol GORO. 

“The business combination of Goldgroup and Gold Resource represents a transformational milestone. With the combined assets and resources of both entities, we expect Goldgroup to become a leading, Mexico-focused junior precious metals producer. This represents a tremendous opportunity, and we look forward to the continued growth and development of the company,” Palmiere said.