TORONTO, June 8, 2012 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) is
continuing to progress its efforts to expand capacity and increase gold
production at its Segovia Operations, but due to delays in reaching its
targeted capacity at Maria Dama in the second quarter of 2012, combined
with lower than planned grades of ore in March, April and May, the
Company has revised its full year 2012 production target for the
Company to a range of 115,000 to 135,000 ounces of gold from its
Segovia and Marmato Operations, from the previously expected 155,000
ounces of gold.
Gran Colombia is in the process of upgrading the Maria Dama plant to
achieve a targeted capacity of 1,500 tonnes of ore per day at its
Segovia Operations. In the first quarter of 2012, the plant processed
an average of 509 tonnes per day and the Company had expected the plant
to ramp up to 1,000 tonnes per day by early in the second quarter and
to 1,500 tonnes per day by the end of 2012.
The new ball mill at the Maria Dama plant came on-line in mid-May and
continues to be tested under increasing loads. After experiencing
delays related to power supply interruptions due to problems at EPM's
La Cruzada substations, together with the mill's motor bearings
overheating due to misalignment problems, and subsequent delays due to
problems with the original crusher, the mill has averaged only 510
tonnes per day in April and May, despite achieving maximum loads of 850
to 900 tonnes per day.
Additionally, the Company has recorded lower than expected head grades
at its Segovia Operations, due to capital development work in its mines
to open new ore faces. This negatively impacted grades in March and
continued in April and May of 2012.
As a result of these developments, the Company now expects 2012 gold
production at its Segovia Operations to be between 90,000 and 110,000
ounces of gold. The Company continues to expect production from the
underground mine at Marmato to total approximately 25,000 ounces of
gold, resulting in expected total production for the Company of between
115,000 and 135,000 ounces of gold for the full year of 2012.
"Our longer term plan remains on track. While we are disappointed by
the delays that we have experienced in ramping up the production
capacity at our Segovia Operations in the second quarter, we remain
confident in our ability to achieve our longer term target of an annual
production rate of 200,000 ounces of gold at Segovia by 2014," said
Maria Consuelo Araujo, Chief Executive Officer of Gran Colombia Gold.
"We will remain focused on achieving our longer term target production
levels and will continue to invest in our key initiatives, adjusting
our discretionary spending plans accordingly."
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 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
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