Goldgroup Mining Inc. · TSXV:GORO
Goldgroup Mining — Investor Presentation (October 2010)
26 slides from Goldgroup Mining's investor presentation, October 2010
Slide 1: Goldgroup Mining Inc. - A Premier Gold Producer in Mexico
Goldgroup Mining Inc. A PREMIER GOLD PRODUCER IN MEXICO October 2010 1
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements and Not an Offer to Sell in the United States This presentation contains forward-looking information about Goldgroup that is intended to be covered by the safe harbor for “forward-looking statements” provided by securities legislation. Forward-looking statements
Slide 3: Introduction
INTRODUCTION • Focused on gold production in Mexico • ~ 25,000 oz Au forecast in 2010 from Cerro Colorado mine • $16 million in working capital • Goldgroup’s earnable interest ~ 1 million oz Au from current assets • World-class management team - specializing in Mexico – Highly successful mining & fi
Slide 4: Corporate Strategy
CORPORATE STRATEGY • Aggressively build a +200,000 oz Au/year Mexican gold producer in three years • Create shareholder value through: - profitable production - development of advanced-stage properties - acquisition and discovery • Acquire producing mines (30,000 - 100,000 oz Au/year) with significa
Slide 5: Extensive Exploration and Development Program
EXTENSIVE EXPLORATION and DEVELOPMENT PROGRAM CB Work Program 2010 - 2011 • 30,000 metre multi-drill program to commence in Q3 combined with geochem, geophysics, metallurgy and adit construction • $8,500,000 budgeted for exploration in 2010 - 2011 San Jose de Gracia Work Program 2010 - 2011 • 18,500
Slide 6: Senior Management Team, Board of Directors & Advisors
SENIOR MANAGEMENT TEAM Keith Piggott, ACSM – CEO & Director Gregg J. Sedun, LLB – Executive Chairman & Director John Sutherland, CGA – Vice President, CFO Kevin Sullivan, B.Sc. MAusIMM – Vice-President, Exploration Francisco Escandon, Geol. Eng. MMSA QP – Project Director, Caballo Blanco David Fry,
Slide 7: Institutional Investors and Noteable Shareholders
INSTITUTIONAL INVESTORS Front Street Capital Sprott Asset Management LP Libra Advisors, LLC Baker Steel Capital LLP Salida Capital Corp. Macquarie Bank NOTEABLE SHAREHOLDERS Clive Johnson Founder of Bema Gold, President/CEO of B2Gold C. Allen Born Former CEO & Chairman of Placer Dome, Cyprus Amax, A
Slide 8: Assets
ASSETS • Caballo Blanco – multi-million oz Au resource potential with initial 100,000 oz Au projected annual production in Veracruz, Mexico • Cerro Colorado Gold Mine in Sonora, Mexico ~ 25,000 oz Au projected production in 2010 • San Jose de Gracia – high-grade, multi-million oz Au resource potenti
Slide 9: Project Locations
PROJECT LOCATIONS RESOURCES PROJECT Millions oz Company (AuEq) 6.0 LA HERRADURA Penoles/Newmont 3.7 DOLORES Minefinders 3.0 MULATOS Alamos 5.7 OCAMPO Gammon Lake Goldgroup Mine 2.8 PINOS ALTOS Agnico Eagle Goldgroup Active Projects 3.1 PALMAREJO Goldgroup Palmarejo Projects 2.5 EL SAUZAL Major Depos
Slide 10: Caballo Blanco
CABALLO BLANCO • Acquired a 70% interest from NGEx for CDN$15m ($6m cash, 9m shares) • NGEx is the main exploration unit of the Lundin Group, owns 10.5% of GGA • Inferred mineral resource of 34.3m tonnes @ avg grade of 0.60 gm/t Au yields 656,000 oz Au (GGM 70% earn-in = 459,000 oz Au) • NI 43-101 T
Slide 11: Caballo Blanco
CABALLO BLANCO tite Porphyry Quartz:ilte Quartz-kaolinte or Dickite Quartz-porphylite Diorite-magnetic Quartz-alunite (GE Mineralsed vuggy silica Barren post-mineral volcanics © Dritnotes. = Roads racks, NS Licence Boundary ‘Wteien (project base) ee ; 56m @ 0.84g/t Au, 0.34% Cu JN
Slide 12: Caballo Blanco
CABALLO BLANCO Section A- A’ Dri Intercepts ft Gold 2.00 00 -1.99 050-099 010-049 i 005-0.09 (ancmalous)
Slide 13: Caballo Blanco
CABALLO BLANCO Drill Intercepts git Gold mm >200 @™ 1.00- 1.99 TB 050-099 a a 0.10-0.49 0.05 - 0.09 (anomalous) g/tAu metres 0.85 ina. 1.23 nc, 226 ang 0.90 158.8" 80.8 "19,8 "20.1 \ 0.48 pc, 0.66 35.1" 18.3, 2.07 4 incy 2.07 ans ne 1-48 15.2 33, 39.9
Slide 14: Cerro Colorado Gold Mine
CERRO COLORADO GOLD MINE • 2010 projected production ~ 25,000 oz Au • NI 43-101 M & I mineral resource is 170,000 oz Au • Inferred mineral resource is 74,000 oz Au • Resources are sufficient for a 5 year mine life based on current production • A new crushing system has been installed to increase rec
Slide 15: Cerro Colorado Gold Mine
CERRO COLORADO GOLD MINE 15
Slide 16: San Jose de Gracia
SAN JOSE DE GRACIA • 618,000 oz Au, 1,109,000 oz Ag, 15, 175,000 lbs Cu 13,657,000 lbs Zn - Goldgroup’s earnable interest is 50% • Inferred Mineral Resource of 3.4 million tonnes at 5.59 g/t Au*, 10.02 g/t Ag, 0.2% Cu & 0.18% Zn (NI 43-101 compliant) • Drilled 188 diamond holes (avg. depth of 235m)
Slide 17: San Jose de Gracia - Significant Drilling Results
SAN JOSE DE GRACIA Significant Drilling Results Drill Hole Interval (m) Gold Grade (g/t) 21 6.1 26.89 26 4.1 16.82 27 6.05 13.59 31 7.5 53.98 51 10.8 19.32 60 5.3 10.9 76 2.8 27.29 104 1.35 26.58 115 5.7 8.67 116 8.15 9.37 131 1.10 29.25 139 5.50 20.51 151 7.82 22.19 154 1.75 21.89 179 1.72 105.51 1
Slide 18: San Jose de Gracia
SAN JOSE DE GRACIA Part of mineralized trend within 90,000 hectares of concessions 18
Slide 19: San Jose de Gracia - Cross-section San Pablo Area
SAN JOSE DE GRACIA Cross-section – San Pablo Area 07-23 07-24, 07-25 Sea Level 08-51 07-30, 07-31 700m 08-60 97-02 1.4m @ 9.56 g/t 650 2.63m @ 0.52 g/t 600 7.5m @ 53.98 g/t 1.6m @ 5.94 g/t 550 0.9m @ 4.26 g/t 10.8m @19.32 g/t 500 2.9m @ 0.67 g/t 450 5.3m @10.90 g/t 4.15m @ 0.51 g/t Legend 400 Vein D
Slide 20: El Candelero
EL CANDELERO • 7 km west of San Dimas Mine (formerly Goldcorp’s) • produced over 160,000 oz AuEq in 2008 • Similar low sulphidation epithermal vein system (up to 2km long) • 26,673 hectare claim areas • Conducted five months of field work • 461 samples collected and assayed to date (118 with grades
Slide 21: Pier Group Analysis
PIER GROUP ANALYSIS 600 .. Average: US$174.04 i=} Oo is} j=] is) wn $sn bany ‘zo sad de> yayeW As of August 31, 2010 C$/USS: 0.95
Slide 22: Investment Opportunity
INVESTMENT OPPORTUNITY • Growth in shareholder value by increasing production and expanding mineral resources: – Caballo Blanco and San Jose de Gracia Two NI 43-101 compliant mineral resources with 200,000 oz Au planned annual production within 36 months – Cerro Colorado Gold Mine ~ 25,000 oz Au pro
Slide 23: Share Structure
SHARE STRUCTURE TSX:GGA OTC:GGAZF Issued and Outstanding: 85,145,413 Stock Options: 8,141,609 Warrants: 2,056,129 Fully Diluted:(as of 31/08/10) 95,343,151 David Fry - Corporate Development Dir: 778.330.2759 TF: 1.877.655.ozAu (6928) dfry@goldgroupmining.com www.goldgroupmining.com 23
Slide 24: Senior Management Team - Detail
SENIOR MANAGEMENT TEAM-DETAIL Keith Piggott, ACSM – CEO & Director • Developed gold mines in Australia and two Mexican gold mines, that have been in continuous production for twelve and five years, respectively • Identified a two million oz gold deposit at Ok Tedi, Papua New Guinea farmed out to BHP
Slide 25: Management Team
MANAGEMENT TEAM Kevin Sullivan, B.Sc. MAusIMM – Vice-President, Exploration • Graduate geologist from Victoria University of Wellington, New Zealand • Member of the Australasian Institute of Mining and Metallurgy • 20 years of gold exploration experience in Australia • Instrumental in the discovery
Slide 26: Board of Directors & Advisors
BOARD OF DIRECTORS & ADVISORS Robert Byford , F.C.A. – Director • Former partner of KPMG LLP and was a Senior Vice President and Director of KPMG Corporate Finance • Brings a wide range of experience to our board in finance, acquisition and divestiture transactions across many industry sectors • Was
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