Goldgroup Mining Inc. · TSXV:GORO
Goldgroup Mining — Investor Presentation (September 2016)
21 slides from Goldgroup Mining's investor presentation, September 2016
Slide 1: An Emerging Gold Producer in Mexico and Ecuador
AN EMERGING GOLD PRODUCER IN MEXICO and ECUADOR Corporate Update • September 2016 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 • Goldgroup has repaid the principle and interest on the Credipresto facility in full and has $2.1 million undrawn remaining on the facility. STRONG MANAGEMENT TEAM • Proven and highly successful mining and finance management team specializing in operations in Mexico
Slide 4: Corporate Overview
Corporate Overview CAPITAL STRUCTURE (September 1, 2016) OWNERSHIP Shares outstanding 184.3 million Keith Piggott (largest shareholder) ~11% Warrants 3.0 million Other Management & Insiders ~10% Options 10.9 million Fully Diluted 198.2 million Market Cap. $58.9 million EXCHANGE TSX GGA 52 Week Range
Slide 5: Asset Overview
Asset Overview CERRO COLORADO MINE LOCATION Sonora, Mexico OVERVIEW Previous gold producer Efficient planned wind down of 2016 WORK mine 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
Slide 6: Proven Management Team
Proven Management Team MANAGEMENT DIRECTORS Keith Piggott, ACSM Keith Piggott, ACSM Chairman, President, CEO & Director Chairman, President, CEO & Director David Ingram, B.Comm, MBA Director Anthony Balic Javier Montaño CFO Director Enrique A. Peralta Director Javier Reyes Director Gregg J. Sedun, L
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 (m) (g/t 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 approx. 150km away from Goldgroup’s Cerro Colorado mine • Commercial production achieved in Q2 2016 and old produced during the six months ended June 30, 2016, was 7,874 ounces* • Management is
Slide 11: Cerro Prieto Project: Plans
Cerro Prieto Project: Plans The Company is continuing to focus its efforts at the project by: • Completing electrical installation to the National Grid, which will reduce diesel consumption resulting in lower operating cost. • Installing on site bulk explosive handling, which will also reduce unit c
Slide 12: Cerro Prieto Project: Production
Cerro Prieto Project: Production Annual Gold Production (oz) 16,000 14,000 12,000 10,000 8,000 2016 Forecast Actual Production 6,000 4,000 2,000 - 2014 2015 6 Months 2016 2016 Forecast Actual Production www.goldgroupmining.com TSX:GGA • OTC:GGAZF 12
Slide 13: El Mozo: Exploration Project
El Mozo: Exploration 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 robust gold
Slide 14: El Mozo: Exploration Project
El Mozo: Exploration 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 currently ow
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 15
Slide 16: Appendices
APPENDICES www.goldgroupmining.com TSX:GGA • OTC:GGAZF 16
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 David Ingram, B.Comm, MBA - Director • Focused long career on management services and advisory work within public and private markets • Advised clients in the technology, natural resources, services and real estate sectors • Previously worked for the Canadian government and the Pe
Slide 19: Board of Directors
Board of Directors Javier Reyes – Director • Founding Partner, President & CEO of Antares Capital Management Ltd. And Cygnus Asset Management which manages three hedge funds • Current President of Credipresto, S.A. de C.V. ENR and President of Mex e Trade Asesores, S.C. • Former financial manager of
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 20
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 21
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