Goldgroup Mining Inc. is making significant strides in reviving the San Francisco Gold Project in Sonora, Mexico. This large-scale, formerly producing open-pit gold operation is poised to become a transformative growth opportunity for the company. With substantial existing resources, established infrastructure, and permitted mining operations, Goldgroup is aggressively moving forward with technical and development work to determine the optimal path toward a potential production restart.
The San Francisco Gold Project currently hosts Measured Mineral Resources of approximately 48.3 million tonnes grading 0.37 grams per tonne (g/t) gold, containing about 582,000 ounces of gold. Additionally, Indicated Mineral Resources amount to approximately 56.8 million tonnes grading 0.35 g/t gold, containing about 645,000 ounces of gold. Combined, these resources total approximately 1.23 million ounces of gold. The project also includes Inferred Mineral Resources of approximately 17.3 million tonnes grading 0.32 g/t gold, containing about 178,000 ounces of gold. These estimates are detailed in the NI 43-101 technical report with an effective date of April 30, 2026, available on SEDAR+.
Exploration Potential and Drill Program
The San Francisco Gold Project encompasses 46,932 hectares of mining concessions, including the historic San Francisco and La Chicharra open pits. One of the most compelling exploration opportunities is the El Llano zone immediately contiguous to the San Francisco pit. Initial drilling in this area suggests that mineralization could extend towards the Mexican State Highway 15 (Pan American Highway). The potential quantity and grade of the El Llano exploration target are conceptual, with estimates ranging from 40 million to 78 million tonnes and grades from 0.38 to 0.61 g/t Au.
Goldgroup has commenced a 26,000-metre drill program at San Francisco, marking the first significant new drilling campaign at the project in many years. This program aims to upgrade and confirm portions of the existing mineral resource, reduce drill spacing, improve geological confidence, and provide additional structural and geological information. The drilling will also support the optimization of the mine plan and evaluate mineralization extensions within and around the existing pits. The company expects to complete the current drilling program during the fourth quarter of 2026.
Technical Study and Production Restart
In parallel with the drilling program, Goldgroup is advancing a technical study focused on the potential restart of mining and processing operations at San Francisco. This study integrates updated geological and resource information with mine planning, processing, infrastructure, capital requirements, and operating considerations. The objective is to evaluate potential mining and production scenarios, considering the extensive infrastructure already present at the project. The work will also help establish the appropriate sequencing and timing for mining, processing, plant refurbishment, and other restart activities.
Javier Reyes, Chairman and Interim CEO of Goldgroup, commented, “San Francisco has many of the characteristics we look for in a company-building asset. It is a large-scale gold project with a substantial existing resource, a history of production, permitted mining operations, and significant infrastructure already in place. We are now moving aggressively to put all of those pieces together.”
Reyes further emphasized the company’s focus on the drilling program and the technical work required to optimize the resource and mine plan. The goal is to establish a clear pathway toward a potential restart of production. The San Francisco project offers multiple opportunities, including an existing resource, opportunities to optimize and expand known deposits, and multiple exploration targets across a very large land package.
Marketing and Investor Relations
Goldgroup has entered into consulting services agreements to support its digital investor communications strategy. On August 11, 2026, the company signed an agreement with Milestone Capital Partners – IFZA of Silicon Oasis, Dubai, U.A.E., to provide marketing and investor relations services. Goldgroup will pay Milestone a total of EUR 250,000 for services including newsletter mailings, introductions to prospective investors, and other marketing services. The agreement is subject to the acceptance of the TSX Venture Exchange.
Additionally, Goldgroup has engaged Sideways Frequency, LLC, a digital marketing and investor relations firm based in Park City, Utah, to provide digital marketing services for a period of three months. Sideways will prepare advertisements, build profiles of the company, disseminate marketing materials, and build a digital community of potential investors. Goldgroup will pay Sideways an upfront sum of USD $800,000 for these services, subject to the acceptance of the TSX Venture Exchange.
Goldgroup Mining Inc. is a Canadian-based precious metals company focused on building a premier intermediate gold and silver producer through disciplined operations, organic growth, and strategic acquisitions. The company owns producing mines and development-stage assets in Mexico and the United States, providing multiple opportunities for resource growth, production expansion, and long-term value creation.
