Goldgroup Mining Company (TSXV: Guru) (New York Stock Exchange: Guru) (FSE: 55G) (“Golden group“or”a company) is pleased to provide shareholders with a corporate update following the successful merger with Gold Resource Corporation, marking the beginning of an exciting new chapter as the Company executes on its strategy to build a leading intermediate precious metals producer.
“Our integration is progressing well, and we are well underway,” said Allen Palmier, CEO. “With multiple production operations, a strong exploration program, a strong development pipeline and a strong balance sheet, we believe Goldgroup is exceptionally well positioned to create long-term value for our shareholders.”
The company launched its new website at the following link: www.goldgroupmining.comReflecting the combined organization and its expanded portfolio of producing mines, development projects and exploration assets. Investors can also access the company’s latest presentations through the website.
Strong exploration and development programs drive future growth
Goldgroup continues to invest heavily in exploration with the aim of expanding resources, extending mine life and identifying new high-value discoveries across its portfolio.
At its 100%-owned Don David mine in Oaxaca, Mexico, the company has completed more than 23,000 meters of drilling year-to-date, one of the largest drilling campaigns in recent years. While much of the program is focused on upgrading existing resources, a significant portion of it is targeting resource expansion with the aim of increasing the mine’s long-term production profile.
The company currently has six underground drilling rigs and one surface drilling rig operating at Don David, reflecting the strategic importance of this asset.
Additionally, drilling is expected to begin this quarter at the highly anticipated Margaritas target, where historical exploration has identified refractory veins containing exceptionally high silver grades. The Company believes that Margaritas represents an exciting exploration opportunity with the potential to add high-grade mineralization to the Don David area.
Develop multiple growth assets
At the formerly producing San Francisco gold project, three drilling rigs continue to work on a 24,000-metre diamond drilling program designed to improve and confirm the geological model and support future mine planning as the company evaluates a potential resumption of production at the end of the year. The 100% wholly owned San Francisco project is permitted to rapidly restart mining operations and consists of two open pits with heap leach processing facilities and associated infrastructure. It is a strong project with significant gold resources, strong upside in terms of optimized development and multiple large-scale exploration targets.
At 100%-owned Cerro Prieto, Goldgroup has deployed three drilling rigs, including two focused on resource expansion and one conducting confirmation drilling to support the development of an upgraded mineral resource.
Back Forty feasibility studies are ongoing
The company is also developing the Back Forty project in Michigan’s Upper Peninsula, where work on a comprehensive feasibility study began in May under the leadership of SLR Engineering.
The 100%-owned Back Forty remains one of GoldGroup’s most attractive long-term development assets, based on a positive preliminary economic evaluation completed in 2023. The feasibility study represents another important milestone as the company advances the project toward potential development.
Delivering operational performance
Operations at the Don David mine continue to perform well and in line with management expectations, providing a solid operating foundation for the combined company.
The company will also continue to work on unlocking significant value addition at Cerro Prieto, where management sees opportunities to increase production, improve operating efficiencies and enhance cash flow generation.
Positioned for the next stage of growth
With producing assets, a strong pipeline of development projects, an active exploration programme, the financial resources to execute its business plan and an experienced operating team, Goldgroup believes it is well positioned to execute its long-term strategy.
Management remains focused on creating a leading intermediate precious metals business through disciplined organic growth, resource expansion, operational excellence and value-enhancing acquisition opportunities.
“We are building a company with multiple avenues for growth,” CEO Allen Palmier added. “Our priorities are clear: grow our resource base, improve our operations, advance our development projects, and continue to seek opportunities that enhance our investment portfolio and create sustainable value for shareholders.”
Recent market activity
When an index provider adds or removes a stock during rebalancing (such as a Russell reshuffle), passive index-tracking funds are required to adjust their portfolios accordingly to maintain accurate tracking alignment. This temporary, short-term event represents a large portion of Goldgroup’s recent market activity.
About the Golden Group
Goldgroup is a Canadian-based mining company with four high-growth gold and silver assets. The company has a 100% interest in the recently acquired San Francisco project located in the state of Sonora. The entire project allows for the rapid restart of mining operations and consists of two open pits with leach processing facilities and associated infrastructure. It is a strong project with significant gold resources, strong upside in terms of optimized development and multiple large-scale exploration targets.
In addition to the San Francisco gold project, the company has a 100% interest in the Cerro Prieto leach pile gold mine located in the state of Sonora.
The company also owns a 100% interest in the Don David gold mine in Oaxaca, Mexico, as well as the Pac-Forty gold/silver development project in Michigan, USA.
Goldgroup is led by a team of successful and experienced individuals with extensive experience in mine development, corporate finance, and exploration in Mexico.
For more information about Goldgroup, please visit the website www.goldgroupmining.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary notes regarding forward-looking information
Certain information contained in this press release may be deemed “forward-looking information” (within the meaning of applicable Canadian securities law) and “forward-looking statements” (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Forward-looking statements relate to analyzes and other information that are based on expectations of future results, as well as management’s estimates and assumptions. This data includes, but is not limited to, data relating to The expected closing date of the arrangement.
These forward-looking statements reflect Goldgroup’s current internal expectations, projections or beliefs and are based 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 those terms or other similar terminology. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those reflected in the forward-looking information, and is developed based on assumptions about such risks, uncertainties and other factors, including, without limitation: the receipt of all regulatory approvals required in connection with the Arrangement, including from the TSX Venture Exchange (“TSXV”); that conditions precedent to the consummation of the Arrangement, including but not limited to TSXV and regulatory approvals, may not be satisfied on a timely basis or at all; and the risk factors disclosed in the Company’s management information circular dated May 29, 2026, Goldgroup’s Annual Information Form dated June 10, 2026 and other ongoing disclosure materials available under the Company’s profile on SEDAR+ at www.sedarplus.ca. Any and all forward-looking information contained in this news release is qualified by these cautionary statements.
Although Goldgroup believes that the forward-looking information contained in this news release is based on reasonable assumptions, readers can be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. Goldgroup expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except as may be required under and in accordance with applicable securities laws.
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