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||409.7||0.90||11,789||6.10||80,330|
* 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 metal.
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 zone.
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.
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.
For further information:
VP, Investor Relations