TORONTO, ON--(Marketwired - April 19, 2017) - Gran Colombia Gold Corp. (TSX: GCM) announced today that it has completed an updated Mineral Resource estimate for its high grade producing Segovia Operations prepared in accordance with the Canadian Institute of Mining Metallurgy and Petroleum ("CIM") Definition Standards incorporated by reference in National Instrument 43-101 ("NI 43-101") with an effective date of March 15, 2017.
Lombardo Paredes Arenas, Chief Executive Officer of Gran Colombia, commenting on the Company's updated Mineral Resource estimate, said "We are pleased with the substantial increase in Measured & Indicated Mineral Resources achieved in this latest update and the replacement of close to 400,000 ounces of gold in the Inferred Mineral Resource category. We believe that our high grade Segovia Operations continue to have a considerable mine life ahead and in 2017, we have already commenced our planned 20,000 meters drilling campaign intended to further upgrade and extend Segovia's Mineral Resources."
Highlights of March 15, 2017 Mineral Resource Estimate
- Total Measured & Indicated Resources increased to 2.9 million tonnes at a grade of 12.0 g/t totalling 1.1 million ounces of gold, up 174% compared to the Mineral Resource estimate as of December 31, 2016 (which reflected depletion of production for the period from September 2013, the date of the previous CIM Mineral Resource estimate, through the end of 2016). Infill drilling along with the ongoing validation work of the historical database and surveying of the underground mine workings have contributed to the increase in the Measured & Indicated categories of Segovia's Mineral Resource estimate.
- The updated Mineral Resource estimate reaffirms the high grade nature of the gold deposits at Segovia with the grade of the Measured & Indicated Mineral Resources averaging 12.0 g/t. By comparison, the head grade of the material mined at Segovia averaged 13.8 g/t during the year ended December 31, 2016 and 13.7 g/t during the first quarter ended March 31, 2017.
- The previous estimate reported all material at El Silencio as Inferred and the estimates were limited to Veta Manto material in lower areas of the mine, which were still flooded at that time. The upgrading of the El Silencio Mineral Resource below Mine Level 29 added 1.8 million tonnes at a grade of 11.4 g/t, representing 659,000 ounces of gold, from Inferred to the Indicated category in the updated Mineral Resource estimate. Mapping and surveying of historical workings together with ongoing validation work of the historical database by the Company's geology team has significantly increased the volume of material available for estimation in the upper levels of the mine, and within five additional known veins within the system.
- The updated Mineral Resource estimate also follows on the successful drilling campaign in 2016, as previously announced on March 13, 2017, focused on infill drilling to increase confidence levels of the Mineral Resources at the Providencia and Sandra K mines which resulted in increases in Measured & Indicated Mineral Resources at these mines by 14% and 4%, respectively, in contained gold. The revised databases for Providencia, Sandra K and El Silencio used in this updated Mineral Resource estimate incorporate the results from 90 additional diamond core drillholes completed by the Company from 2013 through early 2017, using both surface and underground drilling rigs.
- The Company added 398,000 ounces of gold to the Inferred category of the updated Mineral Resource estimate. After the upgrade of material to the Measured & Indicated categories as noted above, Inferred Mineral Resources reflect a total of 3.1 million tonnes at an average grade of 9.9 g/t representing 978,000 ounces of gold.
- The Mineral Resource estimates for Las Verticales and Carla have not been updated as no new information is currently available and the previous estimates for these projects remain valid.
The following table summarizes the Mineral Resource estimate for the Segovia Operations as of March 15, 2017 and changes by category in tonnes, grade and ounces of gold compared with the total Mineral Resource estimate as of December 31, 2016:
Table 1: Mineral Resource Summary for the Segovia Operations dated as of March 15, 2017
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Project Deposit Type Measured Indicated
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Tonnes Grade Au Metal Tonnes Grade Au Metal
(kt) (g/t) (koz) (kt) (g/t) (koz)
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Segovia Providencia LTR 113 19.4 71 275 14.8 131
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Pillars 76 18.4 45 116 10.1 38
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Sandra K LTR 241 10.4 81
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Pillars 91 9.8 29
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El Silencio LTR 609 12.5 245
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Pillars 1,187 10.8 414
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Verticales LTR
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Subtotal Segovia
Project LTR 113 19.4 71 1,125 12.6 456
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Pillars 76 18.4 45 1,394 10.7 480
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Subtotal Carla
Carla Project LTR 154 9.7 48
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Total Segovia Operations 189 19.1 116 2,673 11.4 984
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December 31, 2016 (2) 46 36.1 53 644 16.9 349
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% Change vs 2016 310% -43% 119% 315% -33% 182%
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Project Deposit Type Measured & Indicated Inferred
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Tonnes Grade Au Metal Tonnes Grade Au Metal
(kt) (g/t) (koz) (kt) (g/t) (koz)
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Segovia Providencia LTR 388 16.1 201 163 9.4 49
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Pillars 191 13.4 82 376 19.8 239
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Sandra K LTR 241 10.4 81 240 7.5 58
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Pillars 91 9.8 29 1 9.3 0
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El Silencio LTR 609 12.5 245 997 8.0 258
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Pillars 1,187 10.8 414 347 13.0 144
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Verticales LTR 771 7.1 176
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Subtotal Segovia
Project LTR 1,238 13.2 527 2,171 7.7 541
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Pillars 1,469 11.1 525 724 16.5 384
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Subtotal Carla
Carla Project LTR 154 9.7 48 178 9.3 53
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Total Segovia Operations 2,861 12.0 1,100 3,073 9.9 978
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December 31, 2016 (2) 690 18.1 402 3,816 10.4 1,278
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% Change vs 2016 315% -34% 174% -19% -5% -23%
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Qualified Person
Ben Parsons, Principal Consultant (Resource Geology) with SRK Consulting (USA) Inc., prepared the Segovia Mineral Resource estimate according to CIM Definition Standards and will be supported by a NI 43-101 independent report which will be published and filed on the Company's website and SEDAR profile within 45 days. Mr. Parsons is a Qualified Person as defined by NI 43-101. The NI 43-101 independent report will include detailed information on the key assumptions, parameters and methods used to estimate the mineral resources.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. Gran Colombia is continuing an expansion and modernization project at its Segovia Operations.
Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking Information:
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to anticipated business plans or strategies. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 30, 2017, which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
For Further Information, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com
