Goldgroup Provides An Update On San José de Gracia Project

by | Jun 27, 2016 | General | 0 comments

Goldgroup provides an update on San Jose de Gracia Project after the recent shutdown by the Mexican government. Goldgroup had to rely on a Mexican newspaper because Dyna did not publish any press release about the shutdown.


VANCOUVER, June 27, 2016 /CNW/ – Goldgroup Mining Inc. (“Goldgroup” or the “Company”) (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) has read a news article (“Article”) dated June 26, 2016, published by Noroeste, a major newspaper based in the state of Sinaloa, in regards to a reported mandatory shutdown (“Shutdown”) of the San José de Gracia (“SJG Project”) mining operations by the State Government. While Goldgroup believes the article to be reliable, it has not yet had an opportunity to independently confirm the facts reported in the article.

According to the Article, Gerardo Vargas Landeros, Secretary General of Government, stated the Shutdown was caused by serious safety concerns resulting in the deaths of two employees at San José de Gracia. Landeros also stated there were complaints filed in relation to the poor working conditions of the tunnels, resulting in dangerous landslides.  Landeros has notified legal representatives to request the involved parties to rectify all safety and regulatory issues before the recommencing of any mining activities.

DynaResource de Mexico, S.A. de C.V. (“DynaMex”) owns 100% of the SJG Project. Goldgroup currently has a joint venture agreement with DynaResource, Inc. (“DynaUSA”), of which Goldgroup and DynaUSA each own 50% interest of DynaMex. The SJG Project is currently fully operated by DynaUSA.

Since 2013, Goldgroup has taken numerous legal actions to resolve disputes with DynaUSA as DynaUSA has improperly attempted to dilute Goldgroup’s ownership interest of the SJG Project. As a result of DynaUSA’s actions, Goldgroup lost operational control of the mining operations. The fatalities arose after the Company’s loss of operational control.

The Company would like to express its condolences to the families and friends of the deceased employees. Goldgroup hopes the Shutdown will expedite the legal actions in progress to allow Goldgroup to gain control and rectify the situation at the SJG Project.

“We are deeply saddened to hear the news of the tragic deaths at the mine site,” said Keith Piggott, Chairman, President and CEO of Goldgroup, “Goldgroup will use this opportunity to expedite all legal actions against DynaUSA to gain control of the mining operations at the SJG Project to provide a safe working environment for the mine’s workers.”

For the full news article, please visit the link below.

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.

Disclosure: Long Goldgroup

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About Mariusz Skonieczny

Mariusz Skonieczny is the founder of Classic Value Investors.