Kieth Piggott - Goldgroup PDAC2012 || Latam Ventures, Mining in Mexico PDAC2012


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Kieth Piggott - Goldgroup PDAC2012 || Latam Ventures, Mining in Mexico PDAC2012

  1. 1. Goldgroup Mining Inc. TSX:GGA ▪ OTC:GGAZF March TSX:GGA • OTC:GGAZF
  2. 2. CAUTIONARY STATEMENTForward-Looking StatementsThis presentation contains forward-looking information about Goldgroup within the meaning of the Securities Act (British Columbia). Forward-lookingstatements relate to future events or future performance and reflect Goldgroup’s expectations regarding the future growth, results of operations,business prospects and opportunities of Goldgroup. These statements reflect Goldgroup’s current internal projections, expectations or beliefs and arebased on information currently available to Goldgroup. In some cases forward-looking information can be identified by terminology such as “may”, “will”,“should”, “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “projects”, “potential”, “scheduled”, “forecast”, “budget” or the negative of thoseterms or other comparable terminology. Many of these assumptions are based on factors and events that are not within the control of Goldgroup andthere is no assurance they will prove to be correct. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties andother factors that could cause actual events or results to materially differ from those reflected in the forward-looking statements, and are developedbased on assumptions about such risks, uncertainties and other factors including, without limitation: fluctuations in precious and base metal prices;inherent hazards and risks associated with mining operations; inherent uncertainties associated with mineral exploration and development activities;uncertainties inherent in the estimation of mineral reserves and/or resources and precious metal recoveries; uncertainties related to actual capital costs,operating costs and expenditures, production schedules and economic returns from Goldgroup’s projects; uncertainties related to current global financialconditions; uncertainties related to the availability of future financing necessary to undertake exploration, development, mining and processing activitieson Goldgroup’s properties; risks related to the integration of businesses and assets acquired by Goldgroup; uncertainties related to the competitivenessof the mining industry; risks associated with Goldgroup being subject to government regulation, including changes in law and regulation and risksassociated with Goldgroup’s need for governmental licenses and permits; risks associated with Goldgroup being subject to extensive environmental lawsand regulations, including a change in regulation; risks that Goldgroup’s title to its property could be challenged; political and country risk; risk of watershortages and risks associated with competition for water; Goldgroup’s need to attract and retain qualified personnel; increases in off-site transportationand concentrate processing costs; risks related to the need for reclamation activities on Goldgroup’s properties, including the nature of reclamationrequired and uncertainty of costs estimates related thereto; risks associated with potential conflicts of interest; risks associated with potential labourdisputes; and risks associated with potential blockades of mining operations as well as “Risks and Uncertainties” included in the Annual InformationForm and MD&A for Goldgroup available at Forward-looking information is not a guarantee of future performance and actual resultsand future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in thispresentation is qualified by these cautionary statements. Although Goldgroup believes that the forward-looking information contained in thispresentation are based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly,readers are cautioned against placing undue reliance on forward-looking information. Goldgroup expressly disclaims any intention or obligation to updateor revise any forward-looking information contained in this presentation, whether as a result of new information, events or otherwise, except inaccordance with applicable securities laws. The information contained herein does not constitute an offer of securities for sale in the United States andsecurities may not be offered or sold in the United States absent registration or exemption from TSX:GGA • OTC:GGAZF 2
  3. 3. INTRODUCTION• Focused on expanding gold production to 200,000+ oz Au/year• Highly successful mining and finance management team specializing in operations in Mexico• Cash position: $30 million*• Indicated Resource: 650,000 oz Au Inferred Resource: 900,000 oz Au• Developing advanced-stage NI 43-101 compliant project, Caballo Blanco• Reviewing options for development of San José de Gracia• Cerro Colorado mine in production for 7 years *As of Sept 30, 2011 TSX:GGA • OTC:GGAZF 3
  4. 4. CORPORATE STRATEGY• Create shareholder value by: – Developing Caballo Blanco into a low-cost, heap leach producer – Increasing production to 200,000+ oz Au/year in 3 yrs – Continuing exploration to expand total resources – Medium-term development of high-grade San José de Gracia – Sustaining production at Cerro Colorado – Consolidating joint-venture interests – Acquiring assets that are accretive to reserves/resources with significant expansion TSX:GGA • OTC:GGAZF 4
  5. 5. WHY GOLD?• Growing physical demand – China, India and central banks buying gold bullion – Mexican Central Bank: Heavy purchaser of gold* (Q3 2011)• Growing investment demand – Inflation hedge – Currency protection +92.30% – Safe haven/asset class since Jan ‘08• Flat/decreasing mine supply• Depreciating US dollar Gold Price 2008-2011• Global inflation: Printing of fiatcurrencies by central banks *Source: World Gold Council, 2011 TSX:GGA • OTC:GGAZF 5
  6. 6. MANAGEMENT TEAMKeith Piggott, ACSM – President, CEO & DirectorGregg J. Sedun, LLB – Executive Chairman & DirectorJohn Sutherland, CGA – Chief Financial Officer, Vice-PresidentKevin Sullivan, B.Sc. MAusIMM – Vice-President, ExplorationFrancisco Escandon, Geol. Eng. MMSA – Technical Director, DirectorPatrick Glynn, P.Eng – Vice President, Technical & Project OperationsMark Henry – General Manager, Cerro ColoradoStephanie Batory, MBA – Investor Relations Manager TSX:GGA • OTC:GGAZF 6
  7. 7. BOARD OF DIRECTORS Dr. Paul L. Zweng, M.Sc, Ph.D – Director Dr. Hans von Michaelis, Ph.D – Director Robert Byford, F.CA – Director Corry Silbernagel, P.Eng., MBA – Director Dr. Allen Born, Ph.D – Board of Advisors Harry Burgess, P.Eng. – Board of TSX:GGA • OTC:GGAZF 7
  8. 8. ASSET OVERVIEW• Caballo Blanco – Veracruz, Mexico – Multi-million oz Au resource potential with estimated initial production of ~100,000 oz Au annually at low cost• San José de Gracia – Sinaloa, Mexico – High-grade, multi-million oz Au resource potential with estimated production of ~100,000 oz Au annually• Cerro Colorado Mine – Sonora, Mexico – ~20,000 oz Au expected production in 2011• El Candelero – Sinaloa, Mexico – Earning up to 70% in JV with TSX:GGA • OTC:GGAZF 8
  9. 9. PROLIFIC MINING JURISDICTION La Herradura(Penoles/Newmont) Fresnillo Penasquito 6.0M oz AuEq Cerro Colorado Mine (Fresnillo) (Goldcorp) Why Mexico? 15.8M oz AuEq 48.5M oz AuEq Dolores • Management has spent over 15 (Minefinders) Camino Rojo years in the country (100+ years) 3.7M oz AuEq (Goldcorp) Mulatos 5.2M oz AuEq • Stable economy and government (Alamos) 2.4M oz AuEq • Long and rich history of mining Ocampo • Mining represents a large portion (AuRico) San José de Gracia of economy 5.7M oz AuEq Pinos Altos • Favorable corporate tax rate: 30% (Agnico-Eagle) El Candelero 2.8 oz AuEq • Well established permitting process Palmarejo (Coeur d’Alene) • Experienced local workforce 3.1M oz AuEq El Sauzal (Goldcorp) Major Deposit 2.5M oz AuEq Caballo Blanco San Dimas (Primero) Veracruz 13.0M oz AuEq Los Filos (Goldcorp) 8.4M oz AuEq El Aguila (Gold Resource Corp.) 1.5M oz AuEq TSX:GGA • OTC:GGAZF 9
  10. 10. SIGNIFICANT MILESTONESQ4 2009 – Acquired Caballo Blanco from NGEx Resources (Lundin Group)Q2 2010 – Completed RTO with Sierra Minerals Inc. to form Goldgroup Mining Inc. (TSX:GGA)Q3 2010 – Sold El Porvenir project for $25 million (Initial cost: $3 million)Q1 2011 – Completed $40 million equity financingQ1 2011 – Completed 50% Earn-In for San José de GraciaQ3 2011 – Acquired remaining 30% interest in Caballo BlancoQ4 2011 – Updated NI 43-101 Resource Estimate for San José de GraciaQ1 2012 – Updated NI 43-101 Resource Estimate for Caballo BlancoQ1 2012 – Expect to release PEA for Caballo BlancoQ2 2012 – Expect to be granted EIS for Caballo TSX:GGA • OTC:GGAZF 10
  12. 12. CABALLO BLANCO Caballo Blanco Property Geology Map• 100% owned by Goldgroup Mining Inc.• Indicated Resource: 575,000 oz Au* 55,000 hectares 55,000 hectares Inferred Resource: 419,000 oz Au*• Completed updated NI 43-101 mineral resource Northern Zone Northern Zone estimate in Q1 2012 (La Paila Zone only) La Paila• Two large areas of epithermal gold mineralization: Northern Zone (La Paila focus) and Highway Zone• Project covers 55,000 hectares Exploration Targets• Excellent infrastructure • 65km north of Mexico’s largest port city Veracruz Highway Zone Highway Zone • Access to paved roads and water, power on site • On-site metallurgical and assay facilities• Anticipate annual production of ~100,000 oz Au Veracruz (65km) in 2013 * NI 43-101 Compliant (2012) TSX:GGA • OTC:GGAZF 12
  13. 13. CABALLO BLANCO Northern Zone IP Resistivity Map• Vuggy silica breccias, high sulphidation fully oxidized, epithermal gold system La Paila Zone Indicated: 575,000 oz Au Inferred: 419,000 oz Au• 175 holes drilled to date (GGA: 142)• Northern Zone: La Paila plus at least four other large IP high resistivity Road anomalies Cerro Blanco La Cruz N• Large ‘magnetic high’ ring structure Bandera N• La Paila Zone open to south, southwest, La Cruz S and northeast Bandera S Las Cuevas• Exploring for high-grade feeder zones Las Cuevas SW• 63km IP geophysics survey TSX:GGA • OTC:GGAZF 13
  14. 14. CABALLO BLANCO La Paila Zone• 2011: 30,000m drill 08CBN-004 07CBN-002 11CBN-070 08CBN-017 program on La Paila completed• 2012: 30,000m drill 0.61 g/t Au 0.49 g/t Au @ 129.5m program in progress 0.707 g/t Au @ 134m @ 27.4m 0.58 g/t Au• Underground exploration 0.28 g/t Au 0.89 g/t Au @ 216.4m @ 15.45m tunneling to define ore 0.30 g/t Au @ 17.2m @ 144m in progress 2.194 g/t Au @ 89.9m 1.044 g/t Au @ 85.4m• Metallurgical results 1.549 g/t Au @ 29.0m expected in Q1 2012 293.5m• PEA expected in Q1 2012• Environmental Impact 203.6m Study (EIS) submitted – pending government 227.99m approval 246.89 m La Paila Zone Cross Section 11CBN-127 TSX:GGA • OTC:GGAZF 14
  15. 15. CABALLO BLANCOMine Economics Significant Drilling Results Drill Hole # Interval (m) Gold Grade (g/t)• Mine type: Open pit heap leach 68 134.0 0.61 72 122.0 0.80• Easy processing: Run-of-mine 73 48.50 3.47 79 100.1 0.88• Processing 20,000 tpd @ ~0.65 g/t 82 154.0 0.59 84 64.00 1.20• Leach pad with ~200 Mt capacity 108 84.77 0.71• Completed on-site 25 column tests 120 126.2 0.69 125 57.33 1.16• Observing high recoveries, low strip ratio, 127 144.0 0.89 easy leaching, low reagent consumption 131 90.60 0.91 139 79.42 1.20• Significant resource and production 142 69.60 0.97 growth potential 143 93.90 0.77 153 197.0 0.60 159 67.32 0.88 167 76.00 0.98 172 107.9 TSX:GGA • OTC:GGAZF 15
  16. 16. SAN JOSÉ DE GRACIA• Indicated Resource: 147,000 oz Au* Significant Drilling Results Inferred Resource: 963,000 oz Au* Drill Hole # Interval (m) Gold Grade (g/t) 21 6.10 26.89• Updated NI 43-101 resource estimate in Q4 2011** 26 4.10 16.82• Historical production of 1 million+ oz Au 27 6.05 13.59 averaging 30-60 g/t 31 7.50 53.98 51 10.80 19.32• Low sulphidation epithermal vein system 76 2.80 27.29 104 1.35 26.58• Project covers 69,000 hectares 116 8.15 9.37• Horizontal tunnel access 131 1.10 29.25 139 5.50 20.51• Located 400-700m above sea level 151 7.82 22.19 154 1.75 21.89• 374 holes drilled to date (GGA: 298 holes) 179 1.72 105.51 203 5.50 332.86• Drilled only 5 of 50 highly prospective anomalies 237 0.40 883.91• Goldgroup’s interest = 50% 256 1.24 144.08 264 1.24 21.24 271 4.75 13.93 * NI 43-101 Compliant (2011) ** See Appendix for NI 43-101 Resource Classification TSX:GGA • OTC:GGAZF 16
  17. 17. SAN JOSÉ DE GRACIA San José de Gracia San José de Gracia 3D Block Model Township Part of mineralized Tres Amigos trend within 69,000 hectares of concessions La Union San Pablo La Purisima - Low sulphidation epithermal vein system - Resources in hills above river level - Four main veins: - Low-cost adit mining • Tres Amigos - Good mining widths • San Pablo - High profit margin ounces • La Union • La Purisima * See Appendix for NI 43-101 Resource TSX:GGA • OTC:GGAZF 17
  18. 18. SAN JOSÉ DE GRACIA Andesite Andesite **At 2.0 g/t Au cut-off (underground mining with horizontal tunnel access, gravity/floatation extraction) TSX:GGA • OTC:GGAZF 18
  19. 19. CERRO COLORADO MINE• 100% owned & operated by Goldgroup Mining Inc.• Open pit heap leach operation• In production for 7 years• ~20,000 oz gold production projected in 2011 and 2012• Installed new crushing system to increase recoveries• Ongoing exploration drilling to increase resources TSX:GGA • OTC:GGAZF 19
  20. 20. TIMELINE OF KEY EVENTS Caballo Blanco 2011 2012 2013 2014 Drilling NI 43-101 Resource Update Preliminary Economic Assessment Permitting Construction TSX:GGA • OTC:GGAZF 20
  21. 21. PEER GROUP ANALYSIS $2,500 $2,200 $2,150 $2,000Market Capitalization $1,500 $1,200 $1,000 $889 $806 $771 $703 $500 $392 $349 $319 $252 $155 $- Source: Bloomberg Data as of Feb 20, 2012 TSX:GGA • OTC:GGAZF 21
  22. 22. INVESTMENT OPPORTUNITY • Significant growth potential in near-term production and exploration at Caballo Blanco • World class management team with proven operating and mine production experience in Mexico • Significant management ownership (~20% o/s shares) • Well funded and no debt: Raised $40 million (at $1.40) in last equity financing • Growth in shareholder value through: – Leverage to gold price – Increasing production – Increasing resources • Mexico: Highly-prospective and mining-friendly TSX:GGA • OTC:GGAZF 22
  23. 23. SHARE STRUCTURE Issued & Outstanding: 128,526,049 Incentive Stock Options: 11,477,848 Warrants: 2,000,000 Fully Diluted: (at Mar. 1/12) 142,003,897 Market Capitalization: ~$170m Working Capital: $30m 52 week Range: $1.03-$1.75 Average Volume: ~300,000/day Stephanie Batory, MBA Follow Goldgroup: Investor Relations Manager TF: 1.877.655.ozAu (6928) TSX:GGA • OTC:GGAZF 23
  25. 25. SENIOR MANAGEMENT TEAMKeith Piggott, ACSM – President, Chief Executive Officer & 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• Developed a range of metallurgical technologies, including a patented dry separation technology used today in Australia and Mexico• Graduate in Mining Engineering from the Camborne School of Mines and the Executive Development Program at London Business SchoolGregg J. Sedun, LLB – Executive Chairman & Director• Founding Director & Legal Counsel of Diamond Fields Resources Inc. (sold to Inco for $4.3 billion in the largest takeover of a Canadian junior mining company)• Former Founder, President & Director of Luna Gold Corp. and Diamond Fields International Ltd.• Founding shareholder of Peru Copper Inc. (sold to Chinalco in 2007 for $860 million)• Founding Director of Adastra Minerals (sold to First Quantum Minerals in 2006 for $300 million)• Chairman & CEO of Uracan Resources Ltd. (TSX.V:URC)• President & Director of Oceanic Iron Ore Corp. (TSX.V:FEO)John Sutherland, CGA – Chief Financial Officer & Vice-President• Former CFO of Arequipa Resources leading up to its acquisition by Barrick Gold for $1.1 billion• Hands-on experience building the $120 million Sonora mine in California• Co-founder, Vice-President and CFO of Tekion, Inc.• Founding partner of a venture capital TSX:GGA • OTC:GGAZF 25
  26. 26. MANAGEMENT TEAMKevin 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 of the Mt. Leyshon gold deposit -subsequently produced in excess of 2.5m oz AuFrancisco Escandon, Geol. Eng. MMSA – Technical Director & Director• Graduate geological engineer from the National University of Mexico• 40+ years experience in exploration and mining• Varied experience that includes mine design, metallurgical research, feasibility studies and environmental studies• A Qualified Person (QP) as defined by Canadian NI 43-101 regulationsPatrick Glynn, P.Eng – Vice President, Technical & Project Operations• Graduate metallurgist from the University of the Witwatersrand in Mineral Processing Engineering.• 35+ years experience in the operation and design of gold, copper, nickel and PGM’s processing facilities• Former Senior Project Manager for Rosemont Copper Company and AMEC International, both billion+ dollar TSX:GGA • OTC:GGAZF 26
  27. 27. BOARD OF DIRECTORSDr. Paul L. Zweng, M.Sc, Ph.D - Director• 25 years of successfully blending a technical and financial background in exploration and mining• Co-founder and managing member of Resource Venture Advisors, LLC• Former interim CEO and Director of Bellhaven Copper and Gold Inc. (TSX.V:BHV)• 2003 - 2008, COO, then President/CEO of TSX listed QGX Ltd, acquired by The Kerry Group (Hong Kong) for C$270 million• Co-founded Antares Minerals Inc in 2004, (TSX-V:ANM ) acquired by First Quantum Minerals Ltd. In 2010 for CDN$610 million• Holds two B.Sc degrees in Geology and Applied Earth Sciences (Mineral Economics) from Stanford University (California), a M.Sc. degree in Geology from Queen’s University (Ontario) and a Ph.D. in Applied Earth Sciences (Ore Deposits) from Stanford University (California)Robert Byford, F.CA – 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 also an elected Governor of the Vancouver Stock Exchange, a predecessor to the TSX Venture ExchangeCorry Silbernagel, P.Eng., MBA – Director• Vancouver-based specialist in finance and corporate advisory• Former CFO of Cabo Drilling Corp., one of Canadas largest exploration drilling services companies• Managed large-scale projects in excess of $100 million in mining, oil and gas for companies such as Suncor and TransAlta• Holds an MBA from INSEAD and a Civil Engineering degree from the University of British ColumbiaDr. Hans von Michaelis, Ph.D – Director• PhD. in Geochemistry from the University of Cape Town. Expert in gold and silver ore processing technology• Founding shareholder of Alamos Minerals Ltd. and introduced the Mulatos Gold Project to Alamos• Former Director of Glamis Gold Ltd.• Founder and President of Randol International Ltd. Author of Randol TSX:GGA • OTC:GGAZF 27
  28. 28. BOARD OF ADVISORSHarry Burgess, P.Eng. – Board of Advisors• Mining engineer and founding partner of Micon International Ltd.• Held senior positions with copper and gold producers in Zambia and South Africa• Responsible for the introduction of mechanized mining systems to the gold mines of Anglo-American in the Orange Free State• Leading the review and ongoing management of the Lihir gold project, Papua New Guinea, on behalf of a syndicate of financing banks and institutions arranging an initial public float• Financing involved US$300 million of debt and US$450 million of equityDr. Allen Born, Ph.D – Board of Advisors• Former Chairman and CEO of Alumax Inc. (former third largest US aluminum company until Alcoa takeover – Revenues of $2.7 billion)• Former President, CEO and Chairman of Placer Dome Inc.• Former Co-Chairman of Cyprus Amax Minerals Company• Named 1986, 1991 and 1992 Mining Industry CEO of the year by Financial World Magazine• Received the Golden Nugget Award in 1987 for professional accomplishment from the University of Texas at El Paso• Named aluminum industry CEO of the Year in 1990 (Wall Street Magazine)• Received an Honorary Doctorate of Engineering from the Colorado School of Mines TSX:GGA • OTC:GGAZF 28
  29. 29. CABALLO BLANCO NI 43-101 Mineral Resource Estimate ClassificationDate of Cut-off Resource Tonnes Avg Gold Avg Silver Contained ContainedReport Grade Class Grade Grade Gold Ounces Silver Ounces (Au g/t) (g/t Au) (g/t Ag) (Au) (Ag) 0.20 Indicated 28,890,000 0.62 2.32 575,000 2,150,000 Feb 2012 0.20 Inferred 24,0200,00 0.54 2.50 419,000 1,917,000 - 0.20 Indicated 6,710,000 0.645 - 139,000March2010 0.20 Inferred 27,600,000 0.583 - 517,000 - * Source: Goldgroup’s NI 43-101 Technical Report (February 16, 2012) TSX:GGA • OTC:GGAZF 29
  30. 30. CABALLO BLANCO GEOLOGY La Paila Zone Geology Map La Paila Zone Block TSX:GGA • OTC:GGAZF 30
  31. 31. CABALLO BLANCO Northern Zone Exploration Targets La Paila Zone Drill Map La Paila Zone La Paila Zone Indicated: 575,000 oz Au Indicated: 575,000 oz Au Inferred: 419,000 oz Au Inferred: 419,000 oz Au Road Cerro Blanco La Cruz N Bandera N La Cruz S Bandera S Las Cuevas Las Cuevas TSX:GGA • OTC:GGAZF 31
  32. 32. SAN JOSÉ DE GRACIA NI 43-101 Mineral Resource Estimate Classification Cut-off Resource Tonnes > Cut-off Cut-off Cut-off Cut-off Contained Contained Vein Grade Class Cut-off Gold Silver Copper Zinc Gold Silver (Au g/t) (tonnes) Grade Grade Grade Grade Ounces Ounces (Ag) (g/t Au) (g/t Ag) (% Cu) (% Zn) (Au) Tres 2.00 Indicated 913,000 5.00 10.72 0.21 0.54 147,000 315,000 Amigos Total 2.00 Inferred 5,813,000 5.16 10.26 0.21 0.16 963,000 1,917,000 Inferred Tres 618,000 2.00 Inferred 1,811,000 5.16 10.62 0.25 0.41 300,000 AmigosSan Pablo 2.00 Inferred 1,827,000 6.49 12.80 0.29 0.04 381,000 752,000 La 2.00 Inferred 1,266,000 4.01 5.31 0.08 0.06 163,000 216,000PurisimaLa Union 2.00 Inferred 909,000 4.06 11.37 0.17 0.04 119,000 332,000 * Source: Goldgroup’s NI 43-101 Technical Report (November 2011) TSX:GGA • OTC:GGAZF 32
  33. 33. SAN JOSÉ DE GRACIA San José de Gracia Local Geology Tres Amigos TSX:GGA • OTC:GGAZF 33
  34. 34. CABALLO BLANCO On-Site Heap Leach Column Test Facility Site Analyst Visit (Sept 2011) (Sept 2011) Senior Management Team Underground Tunnel Construction on (Sept 2011) La Paila – Analyst Visit (Sept 2011) TSX:GGA • OTC:GGAZF 34
  35. 35. CABALLO BLANCO Caballo Blanco Operations Team Community Involvement (Sept 2011) (Sept 2011) Caballo Blanco Aerial View Tree planting at Caballo Blanco (Sept 2011) (Sept 2011) TSX:GGA • OTC:GGAZF 35
  36. 36. SAN JOSÉ DE GRACIA San José de Gracia Tree Nursery San José de Gracia Township Tres Amigos Vein Outcrop View Towards Tres Amigos Exploration TSX:GGA • OTC:GGAZF 36
  37. 37. CERRO COLORADO Loading Trucks Gold Bar (Sept 2011) (Sept 2011) Leach Pad Ramp to Mine Waste Site (Sept 2011) (Sept 2011) TSX:GGA • OTC:GGAZF 37
  38. 38. EL CANDELERO• 70/30 JV with Goldcorp• 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• 461 samples collected and assayed to date • 118 samples with grades >1 g/t Au• Santa Cruz – Five main vein structures 5-20m wide • Best sample: 10m @ 17 g/t AuEq• Pino – Four main vein structures avg. 8m wide • Best sample: 8m @ 32.7 g/t AuEq• Soledad – Single vein up to 20m wide and 800m long • Best sample: 3m @ 8.6 g/t TSX:GGA • OTC:GGAZF 38