Goldgroup Mining Commences Drilling at San Francisco Gold Mine, Advances Restart Technical Study

en.Wedoany.com Reported - Goldgroup Mining has initiated a 26,053-meter diamond drilling program and is concurrently advancing technical studies to evaluate the potential restart of its San Francisco gold project in Sonora, Mexico. The drilling program is expected to be completed in the fourth quarter of 2026.

San Francisco is an open-pit gold mine with existing mining infrastructure and permits, and has a history of production. The project currently hosts measured mineral resources of approximately 48.3 million tonnes at a gold grade of 0.37 g/t, containing approximately 582,000 ounces of gold; indicated mineral resources of approximately 56.8 million tonnes at a gold grade of 0.35 g/t, containing approximately 645,000 ounces of gold. Measured and indicated resources total approximately 1.23 million ounces of gold. In addition, the project hosts inferred resources of approximately 17.3 million tonnes at a gold grade of 0.32 g/t, containing approximately 178,000 ounces of gold.

The drilling program is designed to improve confidence in existing resources, reduce drill spacing, and obtain structural and geological information to optimize mining design. Drilling will also collect samples for new metallurgical testing and evaluate the potential extent of mineralization within and around the existing pit. Among the targets, the El Llano area, located east of the San Francisco pit, has been identified as an exploration target, with Goldgroup estimating a conceptual target of 40 to 78 million tonnes at a gold grade of 0.38 to 0.61 g/t. The company clarified that this estimate constitutes an exploration target and does not represent mineral resources.

In addition to drilling, Goldgroup is concurrently advancing a technical study aimed at integrating updated geological information with mine planning, processing, infrastructure, capital requirements, and operating costs. The company is also carrying out rehabilitation work on processing infrastructure. The objective of the study is to determine the technical and economic pathways for a potential restart, utilizing existing facilities and evaluating different production scenarios.

The San Francisco project covers a mineral concession area of 46,932 hectares and includes two historical pits, San Francisco and La Chicharra. The project has cumulative historical production of approximately 1,299,500 ounces of gold between 2010 and 2023. Goldgroup completed the acquisition of a 100% interest in the project in 2026.