Gran Colombia Gold Corp. (TSX: GCM, GCM.WT, GCM.NT.U) is pleased to report a new Mineral Resource estimate for its Carla Mine in Colombia prepared by SRK Consulting (UK) Ltd.
Carla Mine: 59,000 ounces of gold in the Indicated category (0.25 Mt at a grade of 7.5 g/t) and an additional 54,000 ounces of gold in the Inferred category (0.34 Mt at a grade of 4.9 g/t) at a cut-off grade of 3.0 g/t gold.
Total Segovia Operations (inclusive of Carla Mine): 292,000 ounces of gold in the Measured and Indicated category (0.75 Mt at a grade of 12.1 g/t) and an additional 1,138,000 ounces of gold in the Inferred category (2.60 Mt at a grade of 9.9 g/t) at a cut-off grade of 3.0 g/t gold.
Gran Colombia's Segovia Operations are located in Antioquia Department, Colombia, and include the Providencia, Sandra K, El Silencio and Carla mines and the Las Aves vein system exploration and development project. The Mineral Resource update announced on March 5, 2012, combined with the Mineral Resource update on the Carla Mine, announced today (which will be published and filed on the Company's website and SEDAR profile within 45 days), comprise the Company's Segovia Operations. The estimates have been reported according to Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards and will be supported by a National Instrument 43-101 independent report.
Commenting on these results, Maria Consuelo Araujo, Chief Executive Officer of Gran Colombia Gold, noted, "The results of the resource estimate update at our Carla Mine are in line with our expectations and we are very pleased to now have an updated estimate that identifies over 1.4 million ounces of gold resources at our Segovia Operations. In 2012, we plan to almost double our gold production at Segovia from last year and grow to approximately 200,000 ounces per year by 2014. Given the long history of exploration and development in the Segovia area, we have a high degree of predictability and confidence in the sustainability of our operations. This history and the latest resource estimates, provide us with comfort that we have more than sufficient resources to meet our five year mine plan. In 2012, we will focus our investments in operational improvements to support production growth and we will continue with an additional 50,000 metres of geological drilling in order to increase the quality of measured and indicated resources.
The above estimate is based on 9,200 meters of diamond drilling and 32 underground channel samples. The Mineral Resources are reported at a cut-off grade of 3.0 g/t. Cut-off grades are based on a price of US$1,400 per ounce of gold and gold recoveries of 85 percent for resources, without considering revenues from other metals. Mineral Resources are not Ore Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate. The Carla Project is wholly owned by and exploration is operated by the Company.
The Carla Mine encompasses a structurally offset, north trending mineralized vein structure with a total strike length of approximately 900m and a confirmed down dip extent that ranges from 400m to greater than 750m, within which zones of higher and low grades can be found. Historic underground mine workings consist of a single 180m long drive accessed by a decline. A second underground level (down-dip from the historic workings) is currently being developed by the Company. The Carla Mine comprises of 16 Concessions, which have a combined area of approximately 6,000 ha, including Concession 7367 on which the current mine is located.
The mineral resources are reported at an in situ cut-off grade of 3.0 g/t Au, which has been derived using a gold price of US$1400/oz, and suitable benchmarked technical and economic parameters for underground mining and conventional gold mineralised material processing. Some of the mining areas have been sub-divided into Pillar areas ("Pillars"), which represent the areas within the current mining development and Long-Term Mineral Resources ("LTR"), which lies along strike or down dip of the current mining development. Mineral Resources are not Ore Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate. The Segovia Operation is wholly-owned by the Company and exploration is operated by the Company.
SRK has considered sampling density and distance from samples in order to classify the Mineral Resource according to the terminology, definitions and guidelines given in the CIM Standards on Mineral Resources and Mineral Reserves (December 2005) as required by NI 43-101. SRK has assumed a grade of 3 g/t Au based on an insitu cut-off grade.
The complete NI 43-101 Technical Report on the Carla Mine will be filed within 45 days and will be available on the Company's website and www.sedar.com.
Ben Parsons, Senior Resource Geologist with SRK Consulting (UK) Ltd., prepared the Carla Mine mineral resource estimate. He is a Qualified Person as defined by NI 43-101. For detailed information on the key assumptions, parameters and methods used to estimate the mineral resources, along with other information about the Carla Mine, please refer to the Technical Report to be filed.
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. In addition, Gran Colombia is advancing a project to develop a large-scale, gold and silver mine at its Marmato 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 the future financial or operating performance of the Company and its projects. 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. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaim, 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.
SOURCE Gran Colombia Gold Corp.