Goldgroup Files Updated Technical Report on San Francisco Gold Project

Goldgroup Mining filed an updated NI 43‑101 technical report for the 100%‑owned San Francisco gold project in Sonora, Mexico. The report confirms Measured & Indicated resources of 1.226 Moz Au and Inferred resources of 178 Koz Au. A new exploration target at the El Llano zone points to potential additional gold of 788 Koz to 960 Koz. The project is fully permitted with existing heap‑leach processing facilities and a large drilling database. CEO Ralph Shearing reiterated a target to restart mining and gold production in late 2026 or early 2027, and announced a rapid infill drilling campaign to tighten historic drill spacing.

This is the first formal resource statement since Goldgroup took ownership of the San Francisco asset through a court‑approved restructuring in December 2025. The assessed M&I figure of 1.226 Moz is slightly lower than the historic 1.43 Moz M&I (after accounting for ~120 Koz mined since 2020), which is not a surprise. More importantly, the report replaces a highly questionable historic inferred estimate (11.37 Moz) with a compliant 178 Koz inferred, cleaning up the resource statement and providing a realistic basis for a restart decision. The introduction of the El Llano exploration target adds significant upside, though it is conceptual and not yet a resource.

The report uses a $3,500/oz gold price assumption – well above current spot – and relatively low recovery rates (54.5% to 74.4%). These economic assumptions inflate the perceived viability of the project. Nevertheless, in the context of the pending merger with Gold Resource Corporation (Q2 2026), the updated resource de‑risks the combined entity’s flagship growth asset and supports the narrative of a larger Mexican‑focused producer. The news is material because it is essential for project financing and due‑diligence, and it provides the first independent confirmation of the resource under current ownership. However, it does not exceed expectations to a game‑changing degree, as the restart timeline and resource size were broadly anticipated.

Goldgroup Mining Inc. is a Mexico‑focused junior gold producer. Its flagship assets are: - Cerro Prieto: a small heap‑leach gold mine in Sonora (producing ~11,500 oz/yr historically). The company recently doubled crushing capacity to >4,500 t/d and is targeting >24,000 oz/yr plus a re‑leaching project. - San Francisco: a fully permitted, past‑producing open‑pit gold mine in Sonora (1.3 Moz produced 2010‑2022). Goldgroup acquired 100% through a bankruptcy‑related restructuring in late 2025. The deposit hosts a current M&I resource of 1.226 Moz and offers a low‑capital restart opportunity. The company previously owned the Pinos gold‑silver project, which was sold in early 2026. A merger with Gold Resource Corporation (announced January 2026) is expected to close in Q2 2026, adding the producing Don David Gold Mine (Oaxaca) and the Back Forty project (USA), and creating a larger Mexican‑focused producer.