Gran Colombia Gold Announces New Quarterly Gold Production Record of 60,601 Ounces in First Quarter of 2019; Segovia Operations’ Trailing 12 Months Gold Production Surpasses 200,000 Ounces; Signs Contract With GoldSpot Discoveries to Use Artificial Intelligence in Segovia’s Exploration
Gran Colombia Gold Announces New Quarterly Gold Production Record of
60,601 Ounces in First Quarter of 2019; Segovia Operations’ Trailing 12
Months Gold Production Surpasses 200,000 Ounces; Signs Contract With
GoldSpot Discoveries to Use Artificial Intelligence in Segovia’s Exploration
TORONTO, April 11, 2019 -- Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) announced today that it produced a total
of 21,325 ounces of gold in March bringing the total for the first quarter of 2019 to 60,601 ounces, a new quarterly record and
up 15% over the first quarter of 2018. This brings the trailing 12 months’ total gold production at the end of March 2019 to
225,930 ounces, up 4% over 2018’s annual production and at the top end of Gran Colombia’s guidance range for 2019 of
between 210,000 and 225,000 ounces.
Serafino Iacono, Executive Chairman of Gran Colombia, commenting on the Company’s latest production results, said, “We
are very pleased to begin 2019 with another strong quarter of operating performance. At our flagship Segovia Operations, our
investment in the expansion of our mines has increased our daily tonnes processed in the first quarter of 2019 from the
company-operated areas by 11% compared with the annual average for 2018. The expansion of the Maria Dama plant to 1,500
tpd is on track for completion in the second quarter this year, so we will have additional capacity available to handle our
expected near term growth. Our first quarter 2019 gold production has also benefitted from higher grades at both our
Providencia and El Silencio mines, reaffirming our confidence in the high-grade nature of our mining title as we proceed to
accelerate our exploration campaign for the next two years following the completion of the bought deal private placement last
week. We were also pleased to see an improvement in the mining rate at the Marmato mine in March, raising its monthly
production by 22% compared with the average for the first two months of 2019 and getting its quarterly performance back on
track with our expectations for this year. We will be reporting our financial results for the first quarter of 2019 on or about May
15, 2019.”
The Segovia Operations had another solid month in March with gold production of 18,970 ounces bringing the total for the first
quarter of 2019 to a new quarterly record of 54,386 ounces, up 17% over the first quarter of 2018. Gran Colombia processed an
average of 1,112 tonnes per day (“tpd”) at its Segovia Operations in the first quarter of 2019, up 19% from the first quarter last
year, with an average head grade of 18.8 g/t, up from 16.1 g/t in the first quarter of 2018. The key driver was a 36% increase in
high-grade material from the company-operated areas at the Providencia mine which contributed 21% of the total tonnes
processed in the first quarter of 2019 at an average head grade of 34.8 g/t, up from 25.4 g/t in the first quarter last year. The
Company’s mine development and mechanization in the Company-operated areas of the El Silencio mine have also helped to
increase both the tonnes mined and the average head grades from this mine in the first quarter of 2019 compared with the first
quarter last year. This brings Segovia’s trailing 12 months’ total gold production at the end of March 2019 to 200,964 ounces,
up 4% over 2018’s annual production.
At the Marmato Operations, March’s gold production of 2,355 ounces reflected the impact of some recent development work
which increased tonnes processed to 1,090 tpd at an average head grade of 2.5 g/t. This brings Marmato’s total production for
the first quarter of 2019 to 6,215 ounces, on par with the first quarter of 2018, and its trailing 12 months’ total gold production
at the end of March 2019 to 24,966 ounces, also on par with 2018’s annual production.
Gran Colombia Engages GoldSpot Discoveries Corp. to Use Artificial Intelligence in its Forthcoming Exploration
Campaign at its Segovia Operations
Gran Colombia also announced today that it has engaged the team of expert geologists and data scientists at GoldSpot
Discoveries Corp. (“GoldSpot”) (TSXV: SPOT) to use machine learning to identify new drilling targets at its Segovia Operations
to minimize exploration risk and increase discovery rates. GoldSpot will use its geoscience and machine science expertise to
clean, unify and analyse Gran Colombia’s exploration data at Segovia and then produce both 2D and 3D targets for the
forthcoming exploration program. GoldSpot will also deliver newly constructed lithological and mineralization models, new
geophysical products produced through the reprocessing of the raw data and new structural interpretations and models.
Serafino Iacono commented, “Our exploration work at Segovia to-date has centered on our three core mining operations to
build our mineral resource and reserve statement and to support our mine optimization and planning. We have come to a point
where we can now focus on the vast exploration potential we see in our Segovia mining title, stepping out from the existing
mine operations and exploring the other 24 known veins in the mining title. We are excited to work with GoldSpot to leverage
their machine learning capabilities to increase our potential for success in expanding our mineral reserves through the
accelerated drilling campaign we will be launching this year with the proceeds from our recently completed financing.”
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 Segovia and Marmato Operations. Gran Colombia is
continuing to focus on exploration, expansion and modernization activities at its high-grade Segovia Operations.
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 27, 2019 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 Davies
Chief Financial Officer
(416) 360-4653