Goldgroup Mining Inc. (GGA.TO) yesterday released a negative update on the Caballo Blanco project. The company announced the deferral of the evaluation of the Environmental Impact Assessment by SEMARNAT.
The company explains they made this decision because of the outcome of the most recent presidential election, earlier this year. Enrique Pena Nieto won, and Goldgroup is deferring the EIA to make sure the requirements of the new incoming government are met.
This is obviously a huge blow, and we now definitely don’t expect commercial production at Caballo Blanco to start before H2 2014.
Disclosure: The author holds a long position in Goldgroup Mining Inc. Please see our disclaimer for current positions.