Gran Colombia announces Phase III additional cost reduction and extension of the Providencia ore shoot in latest drill results at its high grade Segovia Project
TORONTO, Aug. 12, 2013 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM, OTCQX: TPRFF) announced today that it has recently taken steps in Phase III of its continuing program to reduce operating costs at its Segovia Operations, cutting $400,000 per month, approximately $53 per ounce, through a workforce reduction. Taking employee severances into account, the net impact of this action will begin to benefit the company's all-in sustaining cash cost, currently approximately $1,200 per ounce, at the beginning of October 2013.
The company also announced additional drilling results from the Providencia vein system at its high grade Segovia Project in Antioquia, Colombia. An exploration program of four holes totaling approximately 1,000 metres is currently being drilled subsequent to the results of a National Instrument 43-101 that was announced in the company's August 1, 2013 press release.
With the results of the first hole (ZC-003), drilling at Providencia continues to intersect high grade gold veins with visible gold. Hole ZC-003 returned 5.34 metres @ 19.41 grams per tonne (g/t).
These results confirmed the extension of the associated with holes DS-0089 (includes 0.42 meters at 663.3 g/t) and DS-0126 (includes 2.60 metres at 42.31 g/t)1. Based on the continued success of the exploration program, another hole is currently in progress to extend the high-grade ore-shoot to the west and two more holes have been designed to test the down-plunge extension of the main ore-shoot.
"Our exploration at Segovia continues to identify incremental, very high grade resources to support our Pampa Verde project at Segovia", said Serafino Iacono, Executive Co-Chairman of Gran Colombia. "With the completion of our new processing plant and underground mining operation in 2014, Segovia will be Colombia's first modern, mechanized underground gold mining operation."
Significant results are summarized below:
|Drill Hole||From (m)||To (m)||Length (m)||Gold (g/t)||Silver (g/t)||Vein|
|*||Sample grades over 6.0 g/t Au reported. Grades are for single samples and for length-weighted composites calculated with a cut-off grade of 5.0 g/t Au and no internal dilution. The length is the down-hole sample or composite length and is not necessarily the true width of the vein. The true widths are estimated to be between 50% and 100% of the down-hole length. The grades are not capped and the intervals are not diluted to a minimum mining width.|
As a reminder, the company will host a conference call and webcast on Thursday, August 15th at 9:30 a.m. Eastern Time (8:30 a.m. Bogota time) to discuss second quarter results and provide an operational update.
Webcast and call-in details are as follows:
|Live Event link:||http://www.media-server.com/m/p/zvwgxi7j|
|Toronto & International:||1 (847) 585-4405|
|North America Toll Free:||1 (888) 771-4371|
|Colombia Toll Free:||01 800 9 156 924|
A replay of the webcast will be available at www.grancolombiagold.com from August 15, 2013 until September 30, 2013.
Stewart D. Redwood, Senior Consulting Geologist to the Company, is a qualified person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects and prepared or reviewed the preparation of the scientific and technical information in this press release in respect of the drilling results from the Segovia Project. Dr. Redwood verified the data disclosed in this news release, including the sampling, analytical and test data underlying the information contained in this news release. Verification included a review of the quality assurance and quality control samples, and review of the applicable assay databases and assay certificates.
Quality Assurance and Quality Control
In the case of the drilling results referred to herein, the samples were prepared and assayed by SGS Colombia S.A. at their sample preparation facility in Medellin, Colombia. This company is part of the SGS group (ISO 9001:2008 certified). Gold was assayed by fire assay with atomic absorption spectrophotometer (AAS) finish. Samples over 5 g/t gold were re-assayed by fire assay with gravimetric finish. Silver was analyzed by multi-acid digestion with AAS finish, or by aqua regia digestion and inductively coupled plasma emission spectrophotometer (ICP-ES) finish. Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.
About Gran Colombia Gold
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.
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 and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 26, 2013 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.
1 See company's press releases dated May 14, 2013.
SOURCE Gran Colombia Gold Corp.