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Goldgroup Mining Inc V.GGA

Alternate Symbol(s):  GGAZF

Goldgroup Mining Inc. is a Canada-based gold producer and is focused on the acquisition, exploration and development of advanced stage gold-bearing mineral properties in the Americas. The Company’s primary gold production and exploration and development related activities are conducted in Mexico. It owns a 100% interest in the operating Cerro Prieto project in Sonora. The Cerro Prieto project, located in the Cucurpe Mining District, Sonora, Mexico, is composed of the San Felix (205 hectares (ha)), San Francisco (10 ha), Elba (5.82 ha), Huerta de Oro (20 ha), Reyna de Plata (9.79 ha), Cerro Prieto North (2,508 ha) and Argonauta 6 (4,120 ha) mineral concessions.


TSXV:GGA - Post by User

Bullboard Posts
Post by Pepelepieuxon Jan 06, 2014 2:21pm
420 Views
Post# 22062556

Trying to buy a significant position is hard

Trying to buy a significant position is hardBased on the quality properties that they hold, I couldn't believe that at one point they were trading at less than $7 Million market cap!!!  After all, they just recently bought Cerro Prieto and paid over $10 Million for it by itself, and they are very close to putting it into production within months of purchasing it.  Meanwhile, they have the dying mine Cerro Colorado that is still producing over $200K a month from ore that is already available (no more mining costs), the high grade (but 50% ownership) San Jose de Gracia, and the flagship Caballo Blanco (still need the permit).  So I've been buying, but it's tough to do it for too many shares as others have obviously caught on too.  The price has doubled from the lows but I'm happy to have bought some more this morning at $.14.  What I like the most is that apparently the cash cost of most if not all of these mines is about $700.  At this point having a downside safety net is more important to me than upside potential, though the upside on this stock is greater than anything else I own.  The one caveat is that I can't wait for them to put Cerro Prieto in production so they could start making positive cash flow as they by now probably have less than a $1 million in the bank.  They should be okay unless they run into some operational problem (in the mining sector? say it ain't so!).  I would feel much better also once they receive the about $6 Million that the government of Mexico owes them on taxes.  This would totally derisk the project as far as I'm concerned.
Bullboard Posts