TORONTO, Aug. 21, 2013 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM, OTC:TPRFF) announced today that it produced a total 9,441 ounces of gold and 10,794 ounces of silver in July 2013 from its underground mining operations at Segovia and Marmato in Colombia. This brings year-to-date total production to 60,942 ounces of gold and 89,201 ounces of silver.
Serafino Iacono, Executive Co-Chairman of Gran Colombia, commenting on the production update, said, "This marks the third consecutive month that our total gold production has exceeded 9,000 ounces and over the last five months, we have averaged 9,126 ounces of gold, putting us on an annualized pace of approximately 110,000 ounces. With expected improvements in grades to come from mine development in the fourth quarter at our Segovia Operations, we remain on track to meet our 2013 production guidance of 110,000 ounces of gold."
July also marked the fifth consecutive month that the Maria Dama plant processed an average of more than 1,000 tonnes per day (tpd). Head grades at the Segovia Operations improved by about 4% over the second quarter average to 8.3 g/t, benefitting from an increase in grades in the ore sourced from the contract miners. Gold production from the Segovia Operations amounted to 7,276 ounces in July, bringing the year-to-date total to 48,219 ounces of gold.
Processing 793 tpd at an average head grade of 3.0 g/t in July, the Marmato underground mine had its strongest production month since the beginning of 2012, with a total of 2,165 ounces of gold. Year-to-date gold production at Marmato amounted to 12,723 ounces of gold.
To date, the company has successfully implemented significant cost reductions in its business model that have already resulted in a substantial reduction in all-in sustaining cost to about the $1,200 per ounce level. These actions, coupled with the steady progress in production, are expected to lower the all-in sustaining cost to below $1,150 per ounce by the fourth quarter of 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 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.
SOURCE Gran Colombia Gold Corp.