Gran Colombia Gold Corp. (TSX: GCM, OTCQX: TPRFF) announced today
that the first eight step-out diamond drill holes at the Vera
brownfield target in its Segovia mining title have resulted in
multiple high-grade gold and silver intercepts, including:
- 96.68 g/t Au and 423.7 g/t Ag over
0.49 meters on the Lluvias Vein (VER-ES-006);
- 46.54 g/t Au and 365.0 g/t Ag over
0.34 meters on the Lluvias Vein (VER-ES-005); and
- 5.48 g/t Au and 212.1 g/t Ag over
0.64 meters on the Lluvias Vein (VER-ES-003).
The diamond drill holes at Vera, totaling 2,223
meters, were carried out from surface as part of the Company’s
brownfield drilling program which commenced in October 2020 aimed
at testing the down-dip continuity of the historical Vera mine, a
past-producing mine operated by Frontino Gold Mines Ltd (“FGM”)
from 1940 until 1988. The Vera vein is one of 24 known veins in the
Segovia mining title that Gran Colombia is not currently
mining.
Serafino Iacono, Executive Chairman of Gran
Colombia, commented, “We are very encouraged by these early
drilling results at Vera which provide a clear indication that
mineralization is still open at depth. This is a very exciting time
for Gran Colombia, as we continue to explore our high-grade
producing mines and expand our exploration efforts to include
regional brownfield targets. The exploration team has done an
outstanding job over the last several years as we have continued to
replace and replenish our resource base and reserves at our mines.
Now the team is ready to take on a strategic, expanded brownfield
exploration program, targeting new resources that will utilize our
current infrastructure and capacity, leading to production growth
and mine life extension at Segovia. We are confident that our
exploration campaign will continue to be a key value driver for
Gran Colombia as we move forward.”
Key Highlights of the Vera Drill
Program
- The Vera brownfield target is
located east of the Sandra K – Cogote Vein System and represents
one of the highest priority targets in the Company’s brownfield
drilling program at Segovia.
- Following a 3D geological and
structural modelling exercise incorporating a compilation of old
channel sampling and mining data along with a new detailed
geological-structural survey, an initial diamond drilling program
totaling 3,500 meters in twelve holes was designed for the Vera
brownfield target. This is aimed at testing the down-plunge
continuity of the main orebody mined in the past and the extension
of a potential NE plunging ore-shoot occurring in the southern
sector of the historical mine, currently being mined by artisanal
miners under contract with the Company.
- The brownfield drilling program at
Vera commenced in early October 2020 with one diamond drill rig
operating from two purpose-built surface drill stations.
Approximately 63% of the total drilling program was completed by
the end of January in the eight drill holes reported in this press
release. The remaining four drill holes (approximately 1,300 m)
will be completed by the end of March 2021.
- Drilling has confirmed a new model
for the Vera vein which was built based on historical drill hole
intercepts, new structural data, chip channel data and fieldwork.
This new model incorporates a post-mineralization NW striking
dextral oblique-reverse fault that dips to the NE. This was not
previously identified by FGM, which interpreted that there were two
sub-parallel quartz veins named Vera and Lluvias, the latter in the
hanging-wall of the Vera vein. The intersections to date of the
current drill program confirm the presence of the interpreted fault
and the relative displacement along it, and support the model that
the Vera and Lluvias veins are the same vein, with the Lluvias vein
occurring in the upthrown fault block.
- Gran Colombia’s drilling program
was successful in confirming the continuity of the high-grade gold
and silver mineralization in the upthrown fault block, below the
deepest level of the historical mine.
- The presence of high silver grades
at Vera confirms the metal zoning pattern and polarity that
characterize the entire eastern sector of the Segovia RPP-140
mining title, shown by a reversal of the Au/Ag ratios from Sandra K
to Guia Antigua.
- The style of mineralization of the
intersections drilled so far is characterized by narrow veins
hosting two main stages of mineralization. “Stage 1” is represented
by milky quartz and pyrite and galena forming nests, while “Stage
2” is characterized by grey quartz and pyrite intergrown with
galena and sphalerite along with minor amounts of silver sulfosalts
(possibly proustite and/or pyrargyrite). The veins are enveloped by
a narrow halo of sericitic alteration.
The table below lists the key intercepts from
the Vera drilling program:
Hole |
From (m) |
To (m) |
Width (m) |
Au (g/t) |
Ag (g/t) |
AuEq (g/t) |
Vein |
Surface Drilling platform VER5000 |
VER-ES-003 |
122.60 |
123.24 |
0.64 |
5.48 |
212.1 |
8.31 |
LLV |
Surface Drilling platform VER5340 |
VER-ES-005 |
153.36 |
153.70 |
0.34 |
46.54 |
365.0 |
51.41 |
LLV |
VER-ES-006 |
156.75 |
157.24 |
0.49 |
96.68 |
423.7 |
102.33 |
LLV |
- Vein name
abbreviations: LLV: Lluvias Vein.
- The surface drill
holes were drilled at -45 to -90 degrees from the horizontal.
Sample interval grades over 7.0 g/t AuEq are reported. Grades are
for quartz vein intersections. The width 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.
Au-equivalent grade (AuEq) calculated using a Au:Ag price ratio of
75:1 with 100% recovery as the project is early stage and does not
have metallurgical data to allow for estimation of recovery.
- There are no
results above cut-off grade for 5 other drill holes (VER-ES-001,
002, 004, 007 and 008) and so these holes are not listed in the
table above.
Please refer to the attached illustrative maps
showing an overview of the Segovia mining title vein system, a plan
view of the ongoing drilling program at Vera and a cross-section of
the Vera mine.
FGM developed the Vera mine on six levels, the
longest (Level 2) with an approximate length of 715 meters. Gold
and silver mineralization at Vera is contained predominantly within
a N-S to NNE-SSW trending massive white quartz vein dipping
moderately (35-40°) to the east, with an average width of 1 m. The
vein is hosted by granodiorite and diorite of the Segovia
Batholith. The main ore-shoot mined by FGM at the northernmost end
of the mine plunges NE, is approximately 200 m wide and had a
historical average grade of 28 g/t Au. This trend is consistent
with the general plunge of the ore shoots within RPP-140.
Historical records report 16,507 tonnes with 6.5 g/t of Au as
proven reserves and 24,745 tonnes with 28.1 g/t Au as probable
reserves as disclosed in a private report by FGM in 1981. This
mineral reserve estimate is a historical estimate as defined in
National Instrument 43-101. The mineral reserve categories for this
estimate predate the CIM standards and definitions for mineral
reserve classification and therefore do not conform with the
current definitions of mineral reserves as stated in NI 43-101. The
estimates are of unknown reliability but are included for purposes
of depicting the history of the property. A qualified person has
not done sufficient work to classify the historical estimate as
current mineral reserves. The historical estimate is not being
treated as current mineral reserves.
Overview of Gran Colombia’s 2021 Drill
Programs at its Segovia Operations
Gran Colombia also announced today that it plans
to drill a total of approximately 60,000 meters at its Segovia
Operations in 2021 at a total cost of approximately US$14 million
to carry out its ongoing in-mine and near-mine drill program at its
four operating mines and ramping up its exploration program aimed
at testing its highest priority brownfield targets.
Gran Colombia currently has six diamond drill
rigs in operation at Segovia, with two rigs carrying out resource
definition within the underground developments of the Sandra K and
El Silencio mines, one rig operating from underground at the
Providencia mine testing the continuity of the Providencia vein
system to the west, one rig operating from Level 3 of the Sandra K
mine targeting the down-plunge extension of the southern ore-shoot
of the El Silencio mine, one rig testing from surface the
westernmost end of the Providencia mine, and one rig at Vera.
In-Mine and Near-Mine Drill Program
Gran Colombia’s 2020 drilling program continued
to provide outstanding results, providing further confirmation that
the Segovia Operations are a world-class gold system. The 2020
drilling program led to the discovery of a third high-grade vein at
depth in the El Silencio Mine, the discovery of a new orebody at
Level 14 in the Providencia mine which is being developed and
remains open at depth, confirmation that the mineralization at the
northernmost end of the Sandra K mine is still open along strike
and at depth, and the presence of additional high-grade
mineralization well below the existing underground mine development
at the Carla mine. The Company expects to have updated mineral
reserve and resource estimates incorporating the results of its
2020 drilling program at the end of March 2021.
The 2021 in-mine and near-mine drill program at
the Segovia Operations, which is already underway, will total
approximately 40,000 meters of step-out and in-fill diamond
drilling from purpose-built underground and surface drilling
stations at the Company’s four operating mines, distributed as
follows: approximately 16,200 m at the El Silencio mine, 12,600 m
at the Sandra K mine, 9,100 m at the Providencia mine and 2,100 m
at the Carla mine. In-mine and near-mine drilling will be focused
on replacing the 2021 mining production and organic growth through
resource and reserve expansion at the Company’s core operating
mines. Total budget for this drilling campaign is expected to total
approximately US$10 million.
Brownfield Exploration Program
The Segovia RPP-140 mining title hosts more than
27 know veins and more than 50 small mining workings. During 2020,
Gran Colombia’s target generation exploration team carried out a
prospectivity analysis of a large geological dataset focused on
reprocessing and reinterpreting the exploration data contained in a
data room inherited from FGM. This work culminated in the
generation of brownfield exploration targets, interpreted as areas
ranked more likely to be prospective for gold mineralization than
others based on geological factors. As a result of this ranking
exercise, the entire Segovia RPP-140 mining title was divided into
11 domains based on geological, structural and mineralization
features, which has led to an exploration program that will be
balanced between conceptual greenfield and brownfield targets to be
tested by diamond drilling.
The 2021 brownfield exploration program at
Segovia comprises a multi-phase fieldwork program for each of the
high-priority exploration targets, namely: Vera (ongoing),
Cristales, Marmajito and San Nicolas. Planned exploration work
includes Unmanned Aerial System (“UAV”) magnetic and radiometric
surveys, underground and surface mapping, and possibly induced
polarization (IP) surveying. A total of approximately 20,000 meters
of exploration and step-out drilling has been planned, of which
6,300 m will be drilled at Vera (additional to the current
program), 7,400 m at Cristales, 4,200 m at Marmajito and 2,100 m at
San Nicolas. The total budget for these programs is approximately
US$4 million. Fieldwork, including drilling, will be spread out
throughout the year with Cristales expected to begin in the second
quarter of 2021 and Marmajito and San Nicolas to follow in the
second half of the year.
Qualified Person
Dr. Stewart D. Redwood, PhD, FIMMM, FGS, Senior
Consulting Geologist to the Company, is a qualified person as
defined by National Instrument 43-101 – Standards of Disclosure or
Mineral Projects and prepared or reviewed the preparation of the
scientific and technical information in this press 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
All the Vera samples were prepared and assayed
by SGS Laboratories Ltd (ISO 9001:2008) at their laboratory in
Medellin, Colombia. Gold was assayed by 30 g fire assay with atomic
absorption spectrophotometer (“AAS”) finish. Samples above the
upper detection limit of 10.0 g/t gold were re-assayed by 30 g fire
assay with gravimetric finish. Silver was assayed by aqua regia
digestion with measurement by AAS. Blank, standard and duplicate
samples were routinely inserted and monitored for quality assurance
and quality control.
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 44% of Aris Gold Corporation, 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 also includes an
approximately 18% equity interest in Gold X Mining Corp. (TSXV:
GLDX) (Guyana – Toroparu), an approximately 36% equity interest in
Denarius Silver Corp. (TSX-V: DSLV) (Colombia – Guia Antigua and
Zancudo) 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 anticipated business plans or strategies, including
exploration programs and mineral resources and reserves. 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
Attachment 1 – Segovia Mining Title and
Vein System Overview is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/e762b4ed-77b3-4ab4-8aab-ef8f0161fc50
Attachment 2 – Plan view of the ongoing
drilling program at Vera is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/f7d42ae6-d03b-48f0-8e1c-f15076e8a4cc
Attachment 3 – Cross-section of the Vera
mine is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/81d2b0c5-0210-40e5-ac33-a4b6170aca21
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