Goldgroup Mining Company (JGA-TSXV, GJAZF-OTC) said it has launched a 24,000-metre diamond core drilling program at its San Francisco gold project in Sonora, Mexico.
This is the first new drilling program at the San Francisco project in many years, and is designed to improve the resource model and provide additional technical data in preparation for restarting gold production, targeted for late 2026 or early 2027, the company said.
The training program is expected to be completed in the third quarter of 2026. The program’s budget is estimated at approximately US$8.0 million. Goldgroup shares fell 1.84%, or $0.03, to $1.60 in early trading Thursday and were trading in a 52-week range of $2.16 and 88 cents.
Back in January 2026, the company said it signed a $5.00 million deal with the British Columbia company to sell all of its shares in two subsidiaries that own a 100% interest in the Pinos gold/silver project in Zacatecas, Mexico.
“Having received an unsolicited offer to acquire Pinos, management determined that it would be the best use of the company’s resources to dispose of Pinos’ assets based on the company’s recent acquisition of a San Francisco gold mine, a project significantly larger and more advanced than the Pinos project,” Goldgroup CEO Ralph Shearing said.
“The company’s focus will be on the continued development and improvement of our flagship Cerro Prieto gold mine and progress towards resuming gold production at our San Francisco gold mine,” he said. “Both assets are located 44 kilometers in a straight line from each other in the state of Sonora, Mexico.
The San Francisco Project is fully permitted for the rapid restart of mining operations and consists of two open pits with heap leach processing facilities and associated infrastructure. The company describes the asset as a strong project with significant gold resources and strong upside in terms of optimized development and multiple large-scale exploration targets. With a solid foundation of measured and indicated resources of 1.2 million ounces of gold (as stated in the NI 43-101 compliant technical report dated May 1, 2026), the Company intends to aggressively explore these targets in a subsequent exploration-focused drilling campaign.
“What is exciting about the San Francisco project is the potential to quickly begin producing gold in a continuing strong gold market,” Shearing said. “This drilling program will provide our team with the information needed to improve the mine plan to resume mining operations.” “The infrastructure already in place at the mine represents a significant advantage for our shareholders, reducing the time to less than one year to start producing the mine at a very low cost.”
At the same time, the company is developing a proposed business portfolio with… Golden Resources Company (Guru-NYSE American) which owns a 100% stake in the Don David gold mine in Oaxaca, Mexico, as well as the Pac-Forty gold/silver development project in Michigan, USA.
