Gran Colombia Gold announces full year 2012 production growth of 10% with total production of 100,895 ounces of gold and strengthening of Segovia's management team
TORONTO, Jan. 25, 2013 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM) announced full year 2012 production of 100,895 ounces of gold, a 10% increase over 2011.
Gold production at the company's Segovia and Marmato Operations in the fourth quarter of 2012 was 16,817 and 5,299 ounces respectively, for a total 2012 production of 100,895 ounces of gold. After successfully expanding the company's Segovia Operations to a daily production rate of 1,066 tonnes per day ("tpd") in September, production remained on track, averaging 995 tpd until mid-November. Over a 25-day period starting in mid-November, unexpected power interruptions at the local utility provider's substation resulted in unplanned downtime on almost a daily basis at the Maria Dama plant, reducing mill throughput by 38% to an average of 613 tpd over this period. Once normal operations resumed in the second week of December, the company was able to increase mill throughput at the Segovia Operations over the balance of December to an average of 836 tpd.
A summary of gold and silver production for the fourth quarter and full year is as follows:
|Fourth Quarter||Full Year|
|Gold produced (ounces)||16,817||20,930||79,178||68,704|
|Silver produced (ounces)||25,081||18,404||88,856||64,633|
|Gold produced (ounces)||5,299||6,049||21,717||22,715|
|Silver produced (ounces)||7,918||9,838||35,176||35,116|
|Gold produced (ounces)||22,116||26,979||100,895||91,419|
|Silver produced (ounces)||32,999||28,242||124,032||99,749|
In addition to the previously announced appointment of Gabriel Gaviria as Vice President of Mining, effective immediately, Miguel Vallejo has been appointed as Plant Superintendent at Segovia, Vicente Mendoza will lead the Segovia expansion project to build the new Pampa Verde mine and processing plant and Alessandro Cecchi will continue to be responsible for the company's exploration programs. Each of these leaders brings over 20 years of mining experience in Latin America to their new roles and will report directly to Maria Consuelo Araujo, Chief Executive Officer. Don East, Chief Operating Officer, has left the company, effective immediately. Gran Colombia thanks Mr. East for his contributions and wishes him well in his future endeavours.
"Gran Colombia is committed to closing the value gap for our shareholders. The management changes were implemented to provide better focus and accountability on the strategic imperatives of the company," said Serafino Iacono, Executive Co-Chairman of Gran Colombia Gold. "We remain focused on increasing cash flows from our Segovia Operations by doubling our throughput at our existing Segovia operations; on completing the Marmato prefeasibility study and advancing the project to the next phase; and on successfully implementing the Pampa Verde project to build a new, modern mine and plant at Segovia that will significantly reduce cash costs and increase production".
Gran Colombia has completed the internal work on the Marmato prefeasibility study and has engaged Roscoe Postle & Associates to undertake the activities required to certify the study in accordance with NI43-101 guidelines. Roscoe Postle and Associates commenced its work with a site visit in early January and is finalizing its work plan to certify the prefeasibility study.
The company expects to provide its 2013 outlook together with its fourth quarter and full year 2012 results around the last week of March 2013.
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 28, 2012 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.
SOURCE Gran Colombia Gold Corp.