Gran Colombia Gold Provides Exploration Update

Mar 07, 2011, 03:27 ET from Gran Colombia Gold Corp.

TORONTO, March 7, 2011 /PRNewswire/ -- Gran Colombia Gold Corp. (TSX: GCM) is pleased to announce exploration results from its ongoing diamond drilling programs in Colombia. Highlights include drilling at the Gran Colombia Project which encountered the depth extension of the Providencia Vein 250 metres down-dip from the deepest level of the mine, assaying 161 grams per tonne (g/t) gold over 0.4 metres or 64.5 g/t gold when diluted to one metre. In addition, drilling at the Segovia Gold property intercepted the depth extension of the target vein, grading 22.3 g/t gold and 15.9 g/t silver, including 0.11 metres at a grade of 63.4 g/t gold and 44 g/t silver.

Gran Colombia Project

To date, a total of 19 diamond drill holes totalling 6,836 metres have been drilled or are in progress, with assay results for eight holes, three of which intercepted the Providencia vein, indicating a down-dip extension of 250 metres below the 11 Level, currently the deepest mining level at this site. Gold grades within the vein ranged between 38.4 g/t gold and a high of 161 g/t gold, over widths of 10 to 60 centimetres. Gold grades ranged from 13.4 g/t gold to almost 65 g/t gold when diluted to one metre, which supports the high-grade character of the Providencia vein and the Gran Colombia district. In management's opinion these intercepts have the potential to define new ore blocks to be exploited in the short and medium-term.


   Hole

Depth
(m)

Thickness
(m)

Gold
(g/t)

Gold

g/t

(diluted)

Silver
(g/t)

Vein

P2S10-01

113.3

0.40

43.7

17.5

45.0

Marmajito

P2S10-01

377.3

0.60

38.4

23.0

19.9

Providencia

P2S10-02

420.9

0.10

133.1

13.4

90.2

Providencia

P2S11-03

480.0

0.40

161.1

64.5

> 100.0

Providencia




*All widths are true widths.

Mazamorras Project

Initial results have been received for the upper part of the first hole, MAZ-1, drilled to test the Porphyry A Anomaly at the Mazamorras copper-gold prospect in Narino Province. The hole, totalling 478 metres, was almost entirely within porphyry and intersected 478 metres of porphyry copper-style mineralization with an upper oxide zone followed by a zone of secondary copper enrichment, and passed through into primary porphyry mineralization. The Phase 1 target area is a 1.2 kilometres (km) by 2.0 km anomaly that is dominated by the presence of andesite porphyry with minor intercalations of dacite porphyry, with dominant quartz-sericite alteration overprinting earlier potassic alteration. The copper minerals are fine- to very fine-grained in the oxide zone, with chalcocite in the secondary zone and chalcopyrite in the primary zone. Magnetite is conspicuous throughout the mineralized interval, along with neotocite in the oxide zone.

Hole MAZ-2, located 340 metres northwest of MAZ-1 was completed to a depth of 400 metres. Hole MAZ-3 is in progress, 375 metres southwest of MAZ-2. Full details including assays will be released upon completion of the eight hole reconnaissance drill program.

Plans for Mazamorras into 2011 include three active drill rigs by April, 2011. The exploration budget for the project is $3.8 million, including additional more geophysical surveys, sampling and exploratory drilling.

http://files.newswire.ca/920/GCGMap.pdf

Segovia Project

The Company has received results for ten drill holes, showing the extension of the Gran Colombia vein that assayed 71.6 g/t gold over 0.33 metres (diluted to one metre), as announced by the Company on January 13, 2011. Hole 10 intersected 63.4 g/t gold and 44 g/t silver over 0.1 metres at a depth of 220.7 metres (22.3 g/t gold and 15.9 g/t silver diluted to one metre).  The details are summarized below:


Hole

Depth
(m)

Thickness
(m)

Gold
(g/t)

Silver
(g/t)


1

121.00

0.17

2.5

3.4

Host Rock

121.17

0.33

71.6

57.0

Gran Colombia Vein

121.5

0.51

2.5

2.5

Host Rock

Average

1.01

25.5

21.0


133.65

0.18

5.6

7.3

New Vein

2

91.18

0.19

0.5

6.8

Host Rock

89.72

0.81

0.8

1.5

Gran Colombia Vein

81.53

0.50

0.8

1.0

Host Rock

Average

1.50

0.7

3.1


3

74.12

0.74

3.7

3.7

Gran Colombia Vein

4

49.11

0.88

4.7

3.3

Gran Colombia Vein

7

145.49

0.45

7.8

0.0

Gran Colombia Vein

145.94

0.94

0.4

0.0

Vein

Average

1.39

4.1

0.0


8

250.81

0.86

0.9

0.0

Gran Colombia Vein

9

194.45

1.00

0.8

0.0

Host Rock

194.91

0.40

9.0

7.2

Gran Colombia Vein

Average

1.40

4.9

3.6


10

220.52

0.18

3.5

2.9

Host Rock

220.70

0.11

63.4

44.0

Gran Colombia Vein

220.81

0.81

0.2

0.8

Host Rock

Average

1.10

22.3

15.9





*All widths are true widths.

Providencia Project

Surface samples, collected inside the concession area as shown below, assayed results up to 14.7 g/t gold on an east-west vertical to sub-vertical structure located to the west side of the concession.  Initial diamond drilling results from hole PP02-11 encountered sub-economic grade gold mineralization. Additionally, a mineralized structure oriented NNE/vertical to sub-vertical mined by locals 100 metres to the north appears to continue to the south into the Providencia area.  The sample results appear in the table below:


Sample

Length (m)

Gold (g/t)

Silver (g/t)

Description

EH-001

0.80

14.7

2.9

E-W vertical vein to west side of concession

EH-009

0.30

5.5

17.2

N-NE vertical shear zone to south side of concession

MA 041-1

1.20

14.1

0.1

E-W vertical vein to west side of concession

1 AGUJA

0.80

14.2

19.4

Churumbelos Mine, located 100 metres north of concession boundary.

2 FILON

1.50

37.4

63.6

2-EH

1.50

10.9

15.8

Average

3.80

20.8

32.9




The Company plans to start acquiring geophysics by mid-March 2011, with 74 km of IP and ground magnetics planned.

El Zancudo Project

Underground drilling is taking place at the La Independencia Level in order to identify vein extensions along strike and at depth. A 12,000-metre surface diamond drilling program is slated to commence in the second week of March.

QA, QC and Qualified Person

For all results except those relating to the Mazamorras Project, SGS de Peru S.A.C. (ISO 9002) in Medellin, Colombia prepared all samples which were assayed at their facility in Lima, Peru.  Mazamorras samples were sent to ALS-Chemex (ISO 9001:2000) in Quito, Ecuador for preparation and assaying.

The technical information contained in this press release has been reviewed and approved by Ricardo A. Valls, M.Sc., P.Geo (registered geoscientist in Ontario and Quebec), a qualified person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

About Gran Colombia Gold Corp.:

Gran Colombia Gold is a Canadian-based gold and silver exploration and development company focused on acquiring, developing and operating properties of merit in Colombia. The Company holds 95% of the former Frontino gold and silver assets, including the largest underground gold and silver mining operation in Colombia. It also owns four more exploration projects in Colombia for total exploration acreage of approximately 21,400 hectares. The Company is committed to implementing its exploration and development strategy with a comprehensive environment, safety and community program, meeting international standards of best practice.

Additional information on Gran Colombia Gold can be found on the Company's website at www.grancolombiagold.com and by reviewing the Company's profile on SEDAR at www.sedar.com.

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.

For further information:

Belinda Labatte

Investor Relations

(647) 436-2152



(GCM. GCM.WT.)

SOURCE Gran Colombia Gold Corp.



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http://www.grancolombiagold.com