TORONTO, June 21, 2012 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) is
pleased to report a new Mineral Resource Estimate, prepared by SRK
Consulting (UK) Ltd., for its Marmato Operations located in Colombia,
containing 11.8 million ounces of gold in the Measured and Indicated
categories and an additional 2.6 million ounces of gold in the Inferred
category at a cut-off grade of 0.3 g/t gold and 80.3 million ounces of
silver in the Measured and Indicated categories and an additional 9.4
million ounces of silver in the Inferred category (see table below).
This mineral resource represents an 18% increase in Measured and
Indicated gold ounces and a 26% increase in Measured and Indicated
silver ounces compared to the previous mineral resource estimate, for
the Marmato Operations dated September 4, 2011.
Maria Consuelo Araujo, Chief Executive Officer of Gran Colombia Gold,
commented: "Our exploration activities continue to show upside to this
flagship project at Marmato, which currently ranks in the top two
percent of projects by gold resources globally. We expect further
upside from our recently reported deep zone mineralization, as this
current estimate shows the potential increase in resource and grades at
depth, but further drilling will be required to further define the deep
zone Mineral Resource."
Measured & Indicated
* Mineral resources are not mineral 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. Mineral resources are reported at a cut-off grade
of 0.3 g/t and based on a price of US$1,400 per ounce of gold with gold
recoveries of 88 percent and without considering revenues from other
In addition to the above "in-pit" mineral resource, SRK has also
identified a mineral resource, which it considers as potentially
amenable to underground mining, of 0.3 million tonnes representing
17,000 ounces of gold (grading 2.05 g/t) and 118,000 ounces of silver
(grading 14.26 g/t) in the Indicated category, and 6.7 million tonnes
representing 563,000 ounces of gold (grading 2.62 g/t) and 947 ounces
of silver (grading 4.41 g/t) in the Inferred resource category. This
underground resource is located below the material considered
potentially minable via open pit methods.
In comparison to the previous resource update of September 2011, the
updated model represents a 2.0 million ounce increase of gold resources
and reduction in the gold grade. The reduction in gold grades from 1.0
g/t to 0.9 g/t has been attributed to an increase in tonnage, resulting
from the increase in gold price from $1,200 to $1,400 per ounce, and to
the introduction of a hard-boundary to domain the high grade
intersections in the core of the deposit to form the grade shell deeps
This Mineral Resource Estimate for the Marmato deposit is effective as
of June 12, 2012. The estimate is based on some 216,000 metres of
diamond drilling and cross-cut sampling (primarily diamond drilling),
completed up to March 25, 2012. The estimate has been reported
according to Canadian Institute of Mining, Metallurgy and Petroleum
(CIM) Standards and will be supported by a National Instrument 43-101
independent technical report which will be published and filed on the
Company's website and SEDAR profile within 45 days.
Ben Parsons, Principal Consultant (Resource Geology) with SRK Consulting
(UK) Ltd., prepared the Marmato 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 Marmato, 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. In
addition, Gran Colombia is advancing a project to develop a
large-scale, gold and silver mine at its Marmato operations, and has an
advanced stage property in Venezuela.
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.
For further information:
VP, Investor Relations