Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) announced today
that it produced a total of 19,958 ounces of gold in December 2020
bringing the total for the fourth quarter of 2020 to 57,265 ounces
compared with 65,237 ounces in the fourth quarter of 2019. For the
full year, the Company produced a total of 220,194 ounces of gold
in 2020 which is within its annual guidance range of between
218,000 and 226,000 ounces. 2020 was the fifth consecutive year
that the Company has met or exceeded its annual production
guidance. The Company produced a total of 239,991 ounces of gold in
2019.
Lombardo Paredes, Chief Executive Officer of
Gran Colombia, commenting on the Company’s latest results, said,
“Our Segovia Operations had another steady quarter, finishing the
year within guidance as expected. We have now produced a total of
approximately 1.3 million ounces of gold from Segovia in the 10
years since we acquired the mining title and the head grade has
averaged 13.8 g/t over that period of time, establishing Segovia as
one of the highest-grade underground global gold mines, as further
evidenced by the recently announced high-grade intercepts from our
ongoing drilling program. In the fourth quarter of 2020, we
continued the ongoing development of our mines at Segovia and in
December, we commenced production activities at our fourth mine,
Carla, which is expected to ramp up further during the first half
of 2021. In the fourth quarter of 2020, we used our free cash flow
to fund investments in private placements completed by Caldas Gold
and ESV Resources in the amount of CA$17 million and CA$3 million,
respectively, to fund the repurchases of 484,100 common shares for
cancellation at a cost of approximately CA$2.9 million, to pay
dividends totaling CA$1.9 million to our shareholders and to fund
the principal and interest payments on our debt of approximately
US$5.5 million. At the end of December 2020, Gran Colombia had a
cash position of approximately US$90 million.”
“The Marmato Operations continued to gain
momentum in the fourth quarter of 2020 with the implementation of
the optimized mine plan in the existing upper mining operations and
commencement of the planned plant expansion to be completed in the
third quarter of 2021. Preparatory activities are underway related
to the expansion of underground mining operations into the Marmato
Deep Zone (“MDZ”) as Caldas Gold awaits the extension of its
Marmato mining title, expected to be completed later this month.
Caldas Gold is also currently working closely with the management
of Aris Gold to prepare for a smooth transition to the new board
and management of Caldas Gold once the title extension is
completed. At that time, Gran Colombia’s interest in the new “Aris
Gold Corporation” will be approximately 44.3% on an undiluted
basis.”
The Segovia Operations processed an average of
1,328 tonnes per day (“tpd”) in December 2020 with an average head
grade of 14.7 g/t resulting in gold production of 17,438 ounces in
the month. This brought Segovia’s total production for the fourth
quarter of 2020 to 50,084 ounces compared with 58,180 ounces in the
fourth quarter of 2019. For the full year, the Segovia Operations
produced a total of 196,362 ounces of gold in 2020 which is within
its annual guidance range of between 195,000 and 200,000 ounces.
Segovia produced 214,241 ounces of gold in 2019. Overall, the
Segovia Operations processed an average of 1,280 tpd in 2020 at an
average head grade of 14.5 g/t compared with 1,237 tpd at an
average head grade of 16.4 g/t last year. Gold production from the
four Company mines represented approximately 88% of Segovia’s total
production in 2020. The other 12% of Segovia’s gold production in
2020 was sourced from the small mines operating in the regional
area within the Segovia mining title under contract with the
Company as part of its ESG initiatives. The Company currently has
55 small mines under contract and, in 2020, the Company saw a 10%
increase in material from the small mines. In addition, head grades
in 2020 in the material from the small mines also improved to an
average of 8.5 g/t, up from 6.8 g/t last year, reaching an average
of 11.8 g/t in the fourth quarter of 2020, driven by material from
a small mine operating near the Cristales vein, an area the Company
will commence drilling in February 2021 as part of its regional
drilling campaign, which delivered approximately 1,300 tonnes of
material at an average head grade of 47 g/t.
At Caldas Gold’s Marmato mine, the plant
processed an average of 1,075 tpd in December at an average head
grade of 2.7 g/t resulting in gold production of 2,520 ounces. This
brought Marmato’s total gold production for the fourth quarter of
2020 to 7,181 ounces compared with 7,057 ounces in the fourth
quarter last year. For the full year, Marmato produced 23,832
ounces of gold in 2020 which is within its annual guidance range of
between 23,000 and 26,000 ounces. The Marmato mine produced 25,750
ounces in 2019.
Gran Colombia expects to release its 2020 fourth
quarter and annual financial results together with the updated
mineral reserve and resource estimates for its Segovia Operations
on or about March 31, 2021. Webcast details will be announced in
early March.
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, currently in the process
of being spun out to ESV Resources Ltd. (TSX-V: ESV.H) together
with an approximately 18% 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, the Marmato mining title extension and
timing thereof, closing of the Aris Gold transaction 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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