Gran Colombia Reports Third Quarter 2020 Gold Production of 58,454 Ounces, Up 4% Over the Third Quarter Last Year
13 Oktober 2020 - 01:00PM
Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) announced today
that it produced a total of 19,699 ounces of gold in September 2020
bringing the total for the third quarter of 2020 to 58,454 ounces,
up 4% over the third quarter of 2019. The third quarter 2020
production reflects a 21% improvement over the second quarter of
2020 which had been adversely impacted by the COVID-19 national
quarantine invoked in Colombia in late March. For the first nine
months of 2020, the Company has produced a total of 162,929 ounces
of gold compared with 174,754 ounces in the first nine months of
last year. The Company is continuing to operate normally at both
Segovia and Marmato and remains on track with its annual guidance
of a total of between 218,000 and 226,000 ounces of gold production
this year.
Lombardo Paredes, Chief Executive Officer of
Gran Colombia, commenting on the Company’s third quarter production
results, said, “Our Segovia Operations had a very good third
quarter and, with gold prices better than the first half of this
year, are continuing to drive our free cash flow. At Marmato, after
a challenging second quarter coping with the COVID-19 quarantine’s
impact on worker availability, we have now put together two good
months in a row during which we have seen a normal complement of
workers and improved head grades. We continue to maintain all of
our COVID-19 protocols at our operations and, at our current pace,
we will meet our production guidance for this year. In the third
quarter of 2020, Gran Colombia invested a total of US$25 million in
Caldas Gold’s equity and gold notes financings, purchased 350,000
common shares for cancellation under our NCIB and still saw our
cash position increase from US$73 million at the end of June to
US$95 million at the end of September. In addition, Caldas Gold had
an unrestricted cash position of approximately US$43 million at the
end of September, including approximately US$35 million raised
through its equity bought deal, that will allow it to commence the
expansion project into the Deeps mineralization at its Marmato
Project while it finalizes matters to access funds available from
its gold notes offering and the Wheaton stream.”
The Segovia Operations processed an average of
1,405 tonnes per day (“tpd”) in September 2020 with an average head
grade of 14.1 g/t resulting in gold production of 17,196 ounces in
the month. This brought Segovia’s total production for the third
quarter of 2020 to 51,555 ounces, up 3% over the third quarter of
2019. Segovia’s third quarter 2020 production reflects a 16%
improvement over the second quarter of 2020 which reflected the
impact on the Segovia Operations as the Company adapted to the new
COVID-19 protocols during the initial stages of the national
quarantine from late March through the first two weeks of April.
Since mid-April, the Segovia Operations have been operating at a
fairly normal level through the COVID-19 national quarantine. For
the first nine months of 2020, the Segovia Operations produced a
total of 146,278 ounces of gold compared with 156,061 ounces in the
first nine months last year. Overall, the Segovia Operations have
processed an average of 1,259 tpd in the first nine months of 2020
at an average head grade of 14.7 g/t compared with 1,200 tpd at an
average head grade of 16.5 g/t in the first nine months last year.
The Segovia Operations are expected to produce between 195,000 and
200,000 ounces of gold this year.
Caldas Gold’s Marmato mine delivered a second
consecutive month of improved operating results in September 2020.
The plant processed an average of 950 tpd in September at an
average head grade of 3.1 g/t resulting in gold production of 2,503
ounces. This brought Marmato’s total gold production for the third
quarter to 6,899 ounces, up 11% over the third quarter last year.
Moreover, Marmato’s third quarter 2020 production reflects a 79%
improvement over the second quarter of 2020 which had been
adversely impacted by the COVID-19 quarantine’s limitation on the
mine’s availability of workers. Since July, the situation has
improved and Caldas Gold is proceeding to implement the optimized
mine plan as envisioned in the recently published Marmato Project
prefeasibility study. For the first nine months of 2020, gold
production totalled 16,651 ounces compared with 18,693 ounces
produced in the first nine months of 2019. The Marmato mine is
expected to produce between 23,000 and 26,000 ounces of gold this
year.
About Gran Colombia Gold
Corp.
Gran Colombia is a Canadian-based mid-tier gold
producer with its primary focus in Colombia where it is currently
the largest underground gold and silver producer with several mines
in operation at its high-grade Segovia Operations. Gran Colombia
owns approximately 53.5% of Caldas Gold Corp. (TSX-V: CGC; OTCQX:
ALLXF), a Canadian mining company currently advancing a major
expansion and modernization of its underground mining operations at
its Marmato Project in Colombia. Gran Colombia’s project pipeline
includes its Zancudo Project in Colombia together with an
approximately 20% equity interest in Gold X Mining Corp. (TSXV:
GLDX) (Guyana – Toroparu) and an approximately 26% equity interest
in Western Atlas Resources Inc. (“Western Atlas”) (TSX-V: WA)
(Nunavut – Meadowbank).
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 production guidance and anticipated business plans
or strategies. 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. Factors that could cause actual
results to differ materially from those anticipated in these
forward-looking statements are described under the caption “Risk
Factors” in the Company’s Annual Information Form dated as of March
30, 2020 which is available for view on SEDAR at www.sedar.com.
Forward-looking statements contained herein are made as of the date
of this press release and Gran Colombia disclaims, 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,
Contact:Mike DaviesChief Financial Officer(416)
360-4653investorrelations@grancolombiagold.com
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