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The México Final Legal Ruling is Favorable to DynaMéxico and denies the Amparo challenge of Goldgroup Resources Inc., the subsidiary of Goldgroup Mining Inc. (“GGA.TO”). The Mexico Final Legal Ruling constitutes the Final Appeal of Goldgroup Resources Inc.; and is Not subject to further appeal or protest.
The México Final Legal Ruling is the result and culmination of seven years of legal action performed by DynaMéxico and is the Final Ruling of the 11th Federal Circuit Collegiate Court. With this México Final Legal Ruling issued, all matters before the Court in México with respect to DynaMéxico and Goldgroup Resources Inc. are fully resolved and are no longer subject to appeal or reconsideration.
Legal Summary – Consequence of the México Final Legal Ruling:
1. The $48,280,808.34 USD damages award (dated Oct. 5, 2015) in favor of DynaMéxico and against Goldgroup Resources Inc. is now Final. Goldgroup Resources’ challenge(s) to that award have been fully denied and the damages award is Final.
2. The Lien against the Shares of DynaMéxico owned by Goldgroup Resources Inc. (established Oct. 5, 2016, the “Lien against Goldgroup Shares”) is now fully confirmed, Final, and enforceable.
3. Ownership of the shares of DynaMéxico currently held by Goldgroup Resources (currently representing 20% of the outstanding shares of DynaMéxico) is subject to the Lien against Goldgroup Shares.
4. DynaMéxico owns 100% of the San Jose de Gracía Project.
In commenting on the México Final Legal Ruling, DynaResource, Inc. CEO and DynaResource de México SA de C.V. President K.D. Diepholz noted, “The México Final Legal Ruling constitutes a full and complete legal victory for DynaMéxico. The México Final Legal Ruling is a momentous ruling and milestone event in the history of DynaMéxico and DynaUSA. The results obtained in the México Final Legal Ruling are a direct testimony to the dedicated work of attorneys and advisors representing DynaMéxico in México (led by Lic. Namen Tellez Neme, México City, México, and Lic. Jose Santos Ceja, Mazatlán, Sinaloa, but including many other dedicated contributors as well). Lic. Tellez Neme and Lic. Santos Ceja expended countless hours of work on behalf of DynaMéxico and their commitment, perseverance and passion have made this incredible legal result possible. I would like to express my sincere thank you and appreciation to Lic. Tellez Neme and Lic. Santos Ceja for their professional, dedicated representation of DynaMéxico. I would also like to thank the members of our board of directors, our employees, our shareholders, and our many business partners around the world for maintaining patience and preserving faith in the Company during this long legal challenge. Finally, DynaMéxico has proven victorious against Goldgroup, and justice has prevailed.
“And, now that the seven-year-long legal action against Goldgroup Resources is completed, the Companies of DynaResource will focus on the operation, expansion and further development of the world-class, San Jose de Gracía high-grade gold project.”
San Jose de Gracia (“SJG”)
The San Jose de Gracía District, currently covering an area of 9,920 hectares (24,513 acres), is 100% owned by DynaResource de México, S.A. de C.V. (“DynaMéxico”).
More than one million ounces gold was reportedly produced from the SJG District in the early 1900s, originating from high-grade gold veins, including approximately 470,000 Oz. gold reportedly produced from the La Purisima area of SJG at an average gold grade of 66.7 g/t. In June 2010, the SJG Project was recognized by the State of Sinaloa as the most significant Gold Project in the State for the year 2010.
Canadian National Instrument 43-101 (“NI 43-101”) Technical Report for DynaMéxico – SJG
On March 28, 2012, DynaMéxico issued a National Instrument 43-101 (“NI 43-101”) compliant Technical Report for the San Jose de Gracía Project (the “2012 DynaMéxico Luna-CAM SJG Technical Report,” the “Technical Report”), and approved by DynaMéxico, the 100% owner of SJG. The 2012 DynaMéxico Luna-CAM SJG Technical Report was prepared by Ramon Luna, BS, P.Geo., of Servicios y Proyectos Mineros, Hermosillo, México, and a Qualified Person as defined under NI 43-101; and by Robert Sandefur, BS, MSc, P.E., a senior reserve analyst for Chlumsky, Armbrust & Meyer LLC, Lakewood, Colorado, and a Qualified Person as defined under NI 43-101. The 2012 DynaMéxico Luna-CAM SJG Technical Report includes as Section Fourteen (14) a Mineral Resource Estimate for SJG as prepared by Mr. Sandefur (the “2012 DynaMéxico-CAM SJG 43-101 Mineral Resource Estimate,” and the “Mineral Resource Estimate”).
On Dec. 31, 2012, DynaMéxico issued an updated NI 43-101 compliant (“NI 43-101”) Technical Report for the San Jose de Gracía Project (the “Updated 2012 DynaMéxico Luna-CAM SJG Technical Report,” and the “Updated Technical Report”). The Updated Technical Report was approved by DynaMéxico and filed with SEDAR on Dec. 31, 2012.
Canadian National Instrument 43-101 (“NI 43-101”) Mineral Resource Estimate for SJG
The 2012 DynaMéxico-CAM SJG Mineral Resource Estimate concentrates on four separate main vein systems at SJG: Tres Amigos, San Pablo, La Union, and La Purisima. The Mineral Resource Estimate includes the following Resources:
(1) Tres Amigos; 893,000 tonnes with an average grade of 4.46 g/t, totaling 128,000 Oz. Au;
(2) San Pablo; 1,308,000 tonnes with an average grade of 6.52 g/t, totaling 274,000 Oz. Au.;
(1) 3,953,000 tonnes in aggregate for the four main vein systems, with an average grade of 5.83 g/t, totaling 741,000 Oz. Au.
The Effective Date of the 2012 DynaMéxico Luna-CAM SJG Technical Reports and including the 2012 DynaMéxico-CAM SJG 43-101 Mineral Resource Estimate is Feb. 6, 2012. The Mineral Resource Estimate is reported using a 2.0 g/t cut-off grade for underground mining. As of the Effective Date of the Technical Reports and Mineral Resource Estimate, there is no preliminary economic assessment report or feasibility study completed for SJG, so the precise cutoff grade for underground mining has not yet been determined.
Summary of Recent Operations at SJG
Test Mining and Pilot Mill Operations for January 2016 through September 2019
Period: Jan. 2016 – Sept. 2019
Total Tonnes Mined & Processed: 170,081
Reported Mill Feed Grade (g/t Au): 9.97
Reported Recovery %: 85.00%
Gross Gold Concentrates Produced: 46,204 Oz.
Net Gold Concentrates Sold: 40,853 Oz.
Future Drilling Programs at SJG and Updated Technical Report
No surface drilling programs have been conducted at SJG since 2011. DynaResource plans future surface drilling at SJG, which is projected to define a possible bulk mineable resource, and additional surface drilling at SJG is projected to expand the main resource target areas as well. Subsequent to the completion of surface drilling programs, DynaResource will expect to update the NI 43-101 Technical Report for SJG.
On behalf of the Board of Directors of DynaResource, Inc.
On behalf of DynaResource de México SA de C.V.
DynaResource, Inc. – CEO
DynaResource de México SA de C.V. – Presidente