Goldgroup Mining has begun a 24,000m diamond core drilling programme at its wholly owned San Francisco gold project in Sonora, Mexico.
The company aims to update its resource model, optimise the mine plan, and gather structural and technical data as part of preparations to restart mining activities.
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Gold production is scheduled to resume at the end of 2026 or in early 2027.
According to Goldgroup Mining, this is the first new drilling undertaken at the San Francisco site in several years.
The campaign is due to conclude in the third quarter of 2026 and is being funded from internal resources, with an estimated budget of $8m (C$11.33m).
The drilling is intended to provide data for resource updates and supply the technical information needed before mine operations recommence.
The San Francisco gold project, which is fully permitted for a rapid restart, comprises two open pits as well as heap leach processing facilities and associated infrastructure.
Goldgroup Mining reported estimated measured and indicated resources of 1.2 million ounces of gold, based on an NI 43-101 technical report dated 1 May 2026.
The company indicated plans to further explore large-scale targets at the site through follow-up drilling campaigns.
Meanwhile, Goldgroup Mining continues to operate its Cerro Prieto heap leach gold mine, also located in Sonora.
The company also mentioned its ongoing proposed business combination with Gold Resource Corporation.
Gold Resource holds a 100% interest in the producing Don David gold mine in Oaxaca, Mexico, and the Back Forty gold/silver development project in Michigan, US.
Goldgroup Mining CEO Ralph Shearing said: “What is exciting about the San Francisco project is the possibility of starting gold production quickly in an ongoing strong gold market.
“This drill programme will give our team the necessary information to optimise a mine plan for the restart of mining operations. The infrastructure already in place at the mine is a great advantage to our shareholders, reducing the time to less than one year to bring a mine into production at a very low capital cost.
“Key value drivers include the potential for rapid exposure to cash flow and the possibility of significant resource and mine life expansion with exploration discovery upside.”
