TORONTO, June 11, 2012 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) is pleased to announce drill results from an initial 12 drill holes from its exploration and in-fill drilling program at the Company's El Zancudo Project in Colombia. Drilling to date has returned high-grade gold and silver mineralization over a strike of some 450 metres and dip length of 170 metres on the newly discovered Santa Catalina vein, which is open in all directions. These drill holes are part of a 12,000 metre drilling program, which is focussed on defining new potential resources by following the strike and shallow dip extensions of the Santa Catalina vein that occurs to the west of the historical Independencia Mine.
Maria Consuelo Araujo, Chief Executive Officer of Gran Colombia Gold, commented: "We are very pleased with the consistently good results from this drilling program. These results demonstrate high-grade gold and silver mineralization over a significant strike length of the newly discovered Santa Catalina Vein and confirm this new discovery as a potential mineral resource for the El Zancudo Project."
This drilling program commenced in April 2011 and finished in early June 2012. The drilling program includes both surface and underground drilling and the results will form the basis of an updated Technical Report for the El Zancudo Project that is expected to be completed by the end of 2012. The existing NI43-101 Technical Report for the El Zancudo Project, by Dr. Stewart D Redwood, Consulting Geologist, was dated 6 April, 2010.
Highlighted intersections include the following holes:
|Hole||From (m)||To (m)||Length (m)||Gold Grade (g/t)||Silver Grade (g/t)|
Note: *denotes intersections from the Santa Catalina vein. Sample grades over 5.0 g/t Au reported. Grades are for sulphide vein intersections and are single samples. The length is the sample length and is not necessarily the true width of the vein. All gold and silver grades are uncut and are not diluted to a minimum mining width. Holes DDH-ZG-11-19 and 28 did not return significant intersections.
The majority of the holes listed above shows multiple high-grade intersections that have been interpreted as flat-lying or sub-vertical structures, whose continuity along strike and dip will be proved by the modelling and interpretation that is being carried out.
All of the above holes were drilled from surface except for drill hole DZ-0037 that was drilled underground from the Independencia Mine.
The El Zancudo Project is located approximately 70 kilometres southwest of the city of Medellin, Colombia, on the western side of the Central Cordillera of the Colombia Andes and lies within the Romeral terrane, an oceanic terrane comprising metamorphosed mafic to ultramafic complexes. The Arquia Complex schists, which comprise the Romeral terrane, are partially covered by continental sediments of the Amaga Formation, and both are intruded by the Titiribí Porphyry Complex. The schists and sediments are cut by minor andesite intrusions seen as dikes. The sediments have been folded into several synclines cut by high-angle reverse fault trending N-S and dipping to the east. The Santa Catalina vein is currently interpreted as a cross structure extending between two of these main faults, Castano and El Zancudo. Mineralization is mainly concentrated in a narrow fault breccia with a coarse-grained to fine sulphide-silica rich matrix, and also disseminated in conglomerates, sandstones or schists at or near the base of the Amaga Formation at the unconformity with the underlying Arquia Complex schists. Mineralization also occurs in flat-lying or steeply dipping structures. The known mineralization is indicative of the transition from porphyry to epithermal-style conditions.
The gold in the sulfide ore at El Zancudo is refractory mainly due to the high content in arsenopyrite. The Company has a 120 tonnes per day plant which has crushing, milling and flotation capability to produce a sulfide concentrate and is currently investigating various process options for optimizing gold recovery.
The 12 drill holes referred to in this press release representing a total of 3,380 metres of drilling. All of the results over 1 grams per tonne of gold to date, together with a map showing the locations of the drill holes, are available on the Company's website at www.grancolombiagold.com.
The total number of metres drilled to date is 11,922 metres in 46 holes, 14 holes for which the Company is awaiting assay results and 1 drill hole which is currently in progress. The remaining 16 holes have not been logged yet. Holes ZG-11-030, 32 and 33 have not been accounted for in this press release, as designed for another drilling target.
The drill holes were inclined at 50 to 90 degrees from horizontal, except drill hole DZ-0037 that is horizontal. Sample lengths are no longer than 2.0 metres and may be varied for geological and recovery factors. Gold and silver grades are uncut. Voids from old mine workings were identified and assigned a zero grade.
Stewart D. Redwood, Senior Consulting Geologist to the Company is a qualified person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects and prepared or reviewed the preparation of the scientific and technical information in this press release in respect of the drilling results from the Segovia Project. Dr. Redwood verified the data disclosed in this news release, including the sampling, analytical and test data underlying the information contained in this news release. Verification included a review of the quality assurance and quality control samples, and review of the applicable assay databases and assay certificates.
Quality Assurance and Quality Control
In the case of the drilling results referred to herein, the samples were prepared by SGS Colombia S.A. at their sample preparation facility in Medellin, Colombia, and were assayed by SGS del Peru S.A.C. at their laboratory in El Callao, Peru. Both of these companies are part of the SGS group (ISO 9001:2008 certified). Gold was assayed by fire assay with atomic absorption spectrophotometer (AAS) finish. Samples over 5 g/t gold were re-assayed by fire assay with gravimetric finish. Silver was analyzed by aqua regia digestion and inductively coupled plasma emission spectrophotometer (ICP-ES) finish while samples over 100 g/t silver were re-assayed by multi-acid digestion and AAS finish. Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.
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 operations.
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