Goldgroup Mining Inc. · TSXV:GORO
Goldgroup Mining — Investor Presentation (March 2017)
21 slides from Goldgroup Mining's investor presentation, March 2017
Slide 1: An Emerging Gold Producer in Mexico and Ecuador
AN EMERGING GOLD PRODUCER IN MEXICO and Ecuador Corporate Update • March 2017 www.goldgroupmining.com TSX:GGA • OTCAZ:GGF • BMV:GGAN.MX www.goldgroupmining.com TSX:GGA • OTC:GGAZF 1
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Statements This presentation contains forward-looking information about Goldgroup within the meaning of the Securities Act (British Columbia). Forward-looking statements relate to future events or future performance and reflect Goldgroup’s expectations regarding
Slide 3: Highlights
Highlights FINANCIAL FLEXIBILITY • Producing gold mine in Mexico and available debt facility for expansion, if required STRONG MANAGEMENT TEAM • Proven and highly successful mining and finance management team specializing in operations in Mexico and Ecuador MULTI-ASSET COMPANY • San Jose de Gracia:
Slide 4: Corporate Overview
Corporate Overview CAPITAL STRUCTURE (March 1, 2017) OWNERSHIP Shares outstanding 185.1 million Keith Piggott (largest shareholder) ~9% Warrants 3.0 million Total Management & Insiders ~17% Options 16.3 million Fully Diluted 204.5 million Market Cap. $21.3 million EXCHANGE TSX GGA 52 Week Range $0.0
Slide 5: Asset Overview
Asset Overview SAN JOSÉ DE GRACIA LOCATION Sinaloa, Mexico OVERVIEW Permitted, advanced -stage 50% interest in DynaResource de Mexico, SA de CV High-grade, epithermal vein system CERRO PRIETO PROJECT LOCATION Sonora, Mexico Permitted producing mine that OVERVIEW reached commercial production in 2016
Slide 6: Proven Management Team
Proven Management Team MANAGEMENT DIRECTORS Keith Piggott, ACSM Keith Piggott, ACSM Chairman, President, CEO & Director Chairman, President, CEO & Director Javier Montaño Director Anthony Balic Enrique A. Peralta CFO Director Javier Reyes Director Gregg J. Sedun, LLB Director Corry Silbernagel, P. E
Slide 7: San José de Gracia: Overview
San José de Gracia: Overview SINALOA, MEXICO • 50% interest in DynaResource de Mexico SA de C.V. (which owns 100% of San Jose de Gracia) • Low sulphidation, high-grade epithermal vein system • Historical production of 1 million+ oz Au averaging 30-60 g/t Au • Horizontal tunnel access – adit mining •
Slide 8: San José de Gracia: Development
San José de Gracia: Development • San Jose de Gracia is infrastructure rich, having been a previously operating mine • There are substantial underground workings which could lead to lower cost development capital • A 2011 21,000m drill program was completed on the project with over 300 holes drilled
Slide 9: San José de Gracia: Drilling
San José de Gracia: Drilling Hole Interval Grade (g/t (m) Au) 1 226 8.04 18.47 Looking NE 2 151 7.82 22.19 3 177A 5.27 19.80 4 177B 5.48 12.47 5 237 0.40 889.91 • Four main veins: 1. Tres Amigos, 2. San Pablo 3. La Union 4. La Purisima www.goldgroupmining.com TSX:GGA • OTC:GGAZF 9
Slide 10: Cerro Prieto Project: Overview
Cerro Prieto Project: Overview SONORA, MEXICO • 100% Ownership • Open-pit, heap leach gold project located in the Cucurpe Mining District, Sonora, Mexico • Gold produced during the year ended December 31, 2016, was 15,608 ounces* • Management is expecting gold production for 2017 to be approximately
Slide 11: Cerro Prieto Project: Plans
Cerro Prieto Project: Plans • In Q2 2016, the Cerro Prieto mine achieved commercial production, which was achieved by better utilization of crushing and pad capacity by management. • The mine is now in sustainable operation, additional resources within the same mineralized zone are being investigate
Slide 12: Cerro Prieto Project: Gold Production
Cerro Prieto Project: Gold Production Annual Gold Production (OZ*) 25,000 20,000 20,000 15,608 15,000 10,000 9,151 4,890 5,000 - 2014 Actual 2015 Actual 2016 Actual 2017 Forecast www.goldgroupmining.com TSX:GGA • OTC:GGAZF *see disclosure on previous slide (slide 11) 12
Slide 13: El Mozo: Advanced Development Project
El Mozo: Advanced Development Project • Advanced stage high sulphidation epithermal gold project - 117 holes core drilling (18,722 m) • Oxide gold resource - Historical (non-43-101 compliant) resource estimates for 3 of 8 identified mineralized zones • Preliminary metallurgical testwork indicates ro
Slide 14: El Mozo: Advanced Development Project
El Mozo: Advanced Development Project Goldgroup can earn an 80% interest in El Mozo by: • making cash payments totalling US $400,000 over 4 years • completing exploration expenditures totalling US $2 million over 4 years • issuing US $500,000 in shares to vendor by the end of 4 years • Goldgroup cur
Slide 15: A Golden Opportunity
A Golden Opportunity FINANCIAL FLEXIBILITY TO GROW RESOURCES/PRODUCTION MULTI-ASSET COMPANY BLUE SKY EXPLORATION POTENTIAL SIGNIFICANT INSIDER OWNERSHIP LOCATED IN MINING FRIENDLY MEXICO AND ECUADOR PROVEN MANAGEMENT & BOARD UNDERVALUED VERSUS PEERS www.goldgroupmining.com TSX:GGA • OTC:GGAZF 14
Slide 16: Appendices
APPENDICES www.goldgroupmining.com TSX:GGA • OTC:GGAZF 15
Slide 17: Management Team
Management Team Keith Piggott, ACSM – Chairman, President, CEO & Director • Developed gold mines in Australia and two Mexican gold mines, that have been in continuous production for fourteen and eight years, respectively • Identified a two million oz gold deposit at Ok Tedi, Papua New Guinea farmed
Slide 18: Board of Directors
Board of Directors Enrique A. Peralta – Director • Specializes in corporate and regulatory law in Mexico, including M&A and other capital market transactions • Founded Peralta Abogados, S.C. in Mexico in 2006 • Began legal career in 1979 where he worked with the Ministry of Finance on international
Slide 19: Board of Directors
Board of Directors Gregg J. Sedun, LLB – Director • Founding Director & Legal Counsel of Diamond Fields Resources Inc. (sold to Inco for $4.3 billion) and former Founder, President, CEO & Director of Diamond Fields International Ltd. • Former Founder, President, CEO & Director of Luna Gold Corp. • F
Slide 20: Cerro Prieto
Cerro Prieto Cerro Prieto: View Looking East Classified Blocks: • Red = Measured • Green = Indicated • Blue = Inferred www.goldgroupmining.com TSX:GGA • OTC:GGAZF 19
Slide 21: San José de Gracia
San José de Gracia Classified Blocks: • Red = Measured • Green = Indicated • Blue = Inferred www.goldgroupmining.com TSX:GGA • OTC:GGAZF 20
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