VANCOUVER, June 21, 2016 /CNW/ - Goldgroup Mining Inc.
("Goldgroup" or the "Company") (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) is pleased to announce the declaration of commercial
production as of June 1, 2016 at its Cerro Prieto project located in
the Cucurpe Mining District, Sonora, Mexico.
Now that the mine is in sustainable operation, additional resources within the same mineralized zone are being investigated to
extend mine life beyond the programmed 4 years. Goldgroup believes that additional resources outside the current mining zone
but within the Cerro Prieto concessions also show promise.
Cerro Prieto commenced small-scale trial mining and leaching in December
2013 and Cerro Prieto is expected to produce approximately 15,000 ounces of gold in 2016,
with production weighted towards the second half of the year.
"We look forward to Cerro Prieto's strong contribution to our growth profile over the coming
years," said Keith Piggott, Chairman, President and CEO of Goldgroup "The mine is expected to be a
significant contributor for many years to come."
The Company wishes to make clear that it is not basing its production decision on a preliminary economic assessment
demonstrating the potential viability of mineral resources or a feasibility study of mineral reserves demonstrating economic and
technical viability, and as a result there is increased uncertainty and there are multiple technical and economic risks of failure
which are associated with this production decision. These risks, among others, include areas that are analyzed in more detail in a
Preliminary Economic Assessment ("PEA") or Feasibility Study, such as applying economic analysis to resources or reserves, more
detailed metallurgy, a number of various specialized studies.
Scientific and technical information relating to Cerro Prieto presented above has been approved
by Rodney A. Blakestad, J.D., C.P.G., who by reason of education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, fulfills the requirements of a Qualified Person as defined
in NI 43-101, and he is Independent of the issuer applying all of the tests in Section 1.5 of NI 43-101CP.
About Goldgroup
Goldgroup is a Canadian-based gold production, development, and exploration Company with a significant upside in a portfolio of
projects in Mexico, including a 50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of the high-grade gold exploration project, San José de Gracia located in the State of Sinaloa. The Company also operates its
100%-owned Cerro Prieto heap-leach gold mine, in the State of
Sonora.
Goldgroup is led by a team of highly successful and seasoned individuals with extensive expertise in mine development, corporate
finance, and exploration in Mexico. Goldgroup's mission is to increase gold production, mineral
resources, profitability and cash flow, with a view to building a leading gold producer in Mexico.
On behalf of the Board of Directors,
Mr. Keith Piggott, Chairman and President
Tel: 1-520-247-5753
Investor Relations
Toll Free: 1-877-655-ozAu (6928)
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain information contained in this news release, including any information relating to future financial or operating
performance (including future production and cost estimates), may be considered "forward-looking information" (within
the meaning of applicable Canadian securities law) and "forward-looking statements" (within the meaning of the United States
Private Securities Litigation Reform Act of 1995). These statements relate to analyses and other information that are based on
forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Actual results could differ
materially from the conclusions, forecasts and projections contained in such forward-looking information. These forward-looking
statements reflect Goldgroup's current internal projections, expectations or beliefs and are based on information currently
available to Goldgroup. In some cases forward-looking information can be identified by terminology such as "may", "will", "should",
"expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the
negative of those terms or other comparable terminology. Certain assumptions may have been made regarding the Company's plans at
the Cerro Prieto project. Many of these assumptions are based on factors and events that are not
within the control of Goldgroup and there is no assurance they will prove to be correct. Forward-looking information is subject to
a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to materially
differ from those reflected in the forward-looking information, and are developed based on assumptions about such risks,
uncertainties and other factors including, without limitation: uncertainties related to actual capital costs, operating costs and
expenditures, production schedules and economic returns from Goldgroup's projects; uncertainties associated with development
activities; uncertainties inherent in the estimation of mineral resources and precious metal recoveries; uncertainties related to
current global economic conditions; fluctuations in precious and base metal prices; uncertainties related to the availability of
future financing; potential difficulties with joint venture partners; risks that Goldgroup's title to its property could be
challenged; political and country risk; risks associated with Goldgroup being subject to government regulation; risks associated
with surface rights; environmental risks; Goldgroup's need to attract and retain qualified personnel; risks associated with
potential conflicts of interest; Goldgroup's lack of experience in overseeing the construction of a mining project; risks related
to the integration of businesses and assets acquired by Goldgroup; uncertainties related to the competitiveness of the mining
industry; risk associated with theft; risk of water shortages and risks associated with competition for water; uninsured risks and
inadequate insurance coverage; risks associated with potential legal proceedings; risks associated with community relations;
outside contractor risks; risks related to archaeological sites; foreign currency risks; risks associated with security and human
rights; and risks related to the need for reclamation activities on Goldgroup's properties, as well as the risk factors disclosed
in Goldgroup's Annual Information Form and MD&A. Any and all of the forward-looking information contained in this news release
is qualified by these cautionary statements. Although Goldgroup believes that the forward-looking information contained in this
news release is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such
statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. Goldgroup expressly
disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information,
events or otherwise, except as may be required by, and in accordance with, applicable securities laws.
SOURCE Goldgroup Mining Inc.