en.Wedoany.com Reported - Canadian mining company Goldgroup Mining Inc. has officially launched a 24,000-meter diamond drilling program at its wholly-owned San Francisco Gold Mine project in Sonora, Mexico. The mine had been idle for years, and this drilling marks the first large-scale activity since its restart.

The core objective of the drilling is to optimize the resource model and provide key technical data for restarting gold production. The company plans to complete the entire drilling program by the third quarter of 2026, with a budget of approximately $8 million, fully funded from internal resources. Production is expected to resume by the end of 2026 or early 2027.

The San Francisco project has obtained all necessary environmental and industry permits, facilitating a rapid return to operations. The mine complex includes two open pits, heap leach facilities, and related infrastructure. According to the latest NI 43-101 technical report, the mine currently holds approximately 1.2 million ounces of proven and probable resources. Goldgroup CEO Ralph Shearing stated that the existing infrastructure is a significant advantage for shareholders, reducing the time to bring the mine into production to less than a year compared to building from scratch, with relatively low capital costs in the current gold market environment.

In parallel with the San Francisco project and its Cerro Prieto mine in Sonora, Goldgroup is advancing a strategic merger proposal with Gold Resource Corporation. The transaction would add the Don David mine in Oaxaca and the Back Forty project in Michigan, USA, to its portfolio, creating a high-growth platform for the company.

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