Gran Colombia GOLD Identifies a New Structure at Its Sandra K MINE; Announces Additional High-Grade Drill Results from the Ongoing 2018 Drilling Campaign at Its Segovia Operations; Acquires Additional Interest IN Sandspring Resources
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NEWS RELEASE
GRAN COLOMBIA GOLD IDENTIFIES A NEW STRUCTURE AT ITS SANDRA K MINE; ANNOUNCES
ADDITIONAL HIGH-GRADE DRILL RESULTS FROM THE ONGOING 2018 DRILLING CAMPAIGN AT
ITS SEGOVIA OPERATIONS; ACQUIRES ADDITIONAL INTEREST IN SANDSPRING RESOURCES
TORONTO, CANADA, Wednesday, October 3 , 2018 – Gran Colombia Gold Corp. (TSX: GCM, OTCQX:
TPRFF) announced today that its 2018 drilling program at its Segovia Operations has identifi ed a new
structure at the Sandra K mine, interpreted as a splay off the Techo Vein and termed the 6640 Vein. The
Company also provided an update on further assay results fro m the ongoing underground diamond
drilling program at its Segovia Operations. To date, the Company has completed 128 holes at Segovia
totaling approximately 16,200 meters, representing 81% of its initially planned 20,000 meters to be drilled
in 2018. As announced on August 7, 2018, the Company has since added an other approximately 10,000
meters of directional drilling to its 2018 program, expected to commence in early November, to follow up
on the high-grade results from the ongoing channel samp ling program at its El Silencio mine and extend
the north, middle and south ore-shoots down-plunge with the objective of testing extensions another 200
meters below the currently delineated resource.
Serafino Iacono, Executive Co -Chairman of Gran Colombia, commented , “As we look toward our
opportunities for further production and cash flow growth in 2019 and beyond, w e are pleased with the
continuing high -grade results from our ongoing drilling program at our Segovia Operations aimed at
increasing the confidence in our mineral resources at our three producing mines a nd encouraged by the
initial results from our step-out drilling at the Cristales Vein, one of the other 24 known vein systems in our
Segovia title which has the potential to become a future mining operation".
Segovia Drilling Update
Gran Colombia currently has four diamond drill rigs in operation at Segovia, with three rigs carrying out
resource definition within the underground developments of the Providencia, Sandra K and El Silencio
mines and one drill rig operating from surface at Campo Alegre targeti ng the down -dip extension of the
Cristales Vein to the north of the El Silencio mine.
In-fill drilling at Providencia was planned to test the Providencia vein system to the west of the
current mine development. Multiple high gold grades were intersected from two underground
stations in the ongoing drilling program on the main vein system with maximum grades of 110.96
g/t Au and 80.8 g/t Ag over 2.34 meters.
In-fill drilling at Sandra K was planned to delineate and extend down -dip one of the main ore -
shoots outlined by mining within the existing operation. Multiple high gold grades were generated
from 23 drill holes (2,394 meters) drilled from underground in the ongoing drilling program on the
main vein system with maximum grades of 17.18 g/t Au with 33.6 g/t Ag over 0.71 metres on the
Sandra K Techo Vein, and 175.15 g/t Au with 1 ,223.0 g/t Ag over 0.50 metres on the 6640 Vein,
which is interpreted as a new splay off the Techo Vein.
In-fill drilling at El Silencio continues to test the down -plunge extension of the main ore -shoot
located at the northern end of the mine. As the ongoing underground drilling program on the main
vein system commenced recently, only two high gold grade intersections have been returned so
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far, with maximum grades of 57.58 g/t Au with 441.1 g/t Ag over 0.46 metres on a new vein that is
interpreted to be a splay off the Manto Vein.
Surface exploration drilling on the Cristales Vein was primarily intended to extend down -dip the
vein currently mined close to surface by artisanal miners under contract with Gran Colombia . The
Cristales Vein is one of the most prospective structures within the 24 secondary veins known but
not explored systema tically within Segovia’s RPP -140 title. To date, seven drill holes totaling
approximately 1,990 meters have been completed of the ongoing program, with an encouraging
good grade of 7.58 g/t Au with 39.2 g/t Ag over 0.51 meters in one drill hole . All the ot her drill
holes returned low grades.
Key Highlights and Intercepts Since Our June 18, 2018 Press Release
In-fill drilling at the Providencia Mine was successful in outlining a new high -grade zone to the
west of and near the high -grade orebody that is currently in production. The ongoing drilling at
Providencia is aimed to better delineate and further extend this zone to the west, which offers the
potential for another significant phase of resource growth at our flagship mine in Segovia. The
high-grade gold mineralized intercepts associated to this new zone confirm the higher -grade
mineralization at depth, which cou ld have a positive impact, increasing both production and mine
life at Providencia.
In-fill drilling at Sandra K was successful in d elineating and further extending down -plunge one of
main ore shoots outlined by mining in the upper levels of the existing operation. This orebody
remains open at depth and offers the potential for additional resource growth. This program was
also successful in delineating a new structure termed the 6640 Vein and interpreted as a splay of f
the Techo Vein, which shows high gold and silver grades.
In-fill drilling at the El Silencio mine was successful in delineating a new structure, interpreted as
a splay off or hanging-wall structure of the Manto Vein and termed the HW1-VM Vein.
The Providencia and Sandra K drill programs continue to increase the confidence in the
geological model of both ore bodies through increased drill density.
Although most of the intercepts at the Cristales Vein returned low grades, the ongoing drilling
program was successful in extending 200 meters do wn-dip the vein currently mined close to
surface. Furthermore, the only intercept with a good grade points out a potential new mineralized
zone outside the known down -plunge extensions of the ore -shoots currently mined in the existing
artisanal operation. A phase of follow -up drilling is being designed for later i n 2018 to test the
extent of this intercept.
The table below lists the key intercepts from the 2018 drilling program since the last press release
issued on June 18, 2018:
Hole From (m) To (m) Width (m) Vein Au (g/t) Ag (g/t)
Providencia Mine (Attachment 1)
PV-IU-123* 63.35 63.69 0.34 Providencia 17.81 41.7
PV-IU-124* 72.36 74.70 2.34 Providencia 110.96 80.8
including 72.36 73.30 0.60 Providencia 240.60 198.1
PV-IU-140* 72.00 73.30 1.30 Providencia 21.84 22.9
PV-IU-142* 46.46 47.37 0.91 Providencia 55.92 49.2
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Hole From (m) To (m) Width (m) Vein Au (g/t) Ag (g/t)
Sandra K Mine (Attachments 2 and 3)
SK-IU-003* 14.20 14.90 0.70 6640 Vein 49.81 238.6
SK-IU-005* 21.52 22.73 1.21 6640 Vein 19.98 90.4
SK-IU-006* 63.47 64.73 1.26 Sandra K Techo 10.79 151.8
SK-IU-007* 25.50 26.0 0.50 6640 Vein 175.15 1,223.0
SK-IU-010* 17.94 18.28 0.34 6640 Vein 79.90 3,319.0
SK-IU-010* 117.05 118.30 1.25 Sandra K Techo 15.75 96.2
SK-IU-011* 10.60 11.00 0.40 6640 Vein 39.53 1122.0
“ 69.89 72.19 2.30 Sandra K Techo 12.28 114.9
SK-IU-012* 117.40 120.45 3.05 Sandra K Techo 11.98 61.2
SK-IU-013* 105.60 110.78 5.18 Sandra K Techo 7.72 25.9
including 105.60 108.60 3.00 Sandra K Techo 13.13 38.2
SK-IU-016* 69.76 72.30 2.54 Sandra K Techo 9.11 43.4
SK-IU-017* 6.28 6.68 0.40 6640 Vein 9.86 218.1
SK-IU-018* 80.80 81.70 0.90 Sandra K Techo 8.0 51.3
SK-IU-019* 94.42 98.08 3.66 Sandra K Techo 7.34 45.3
including 94.42 95.50 1.08 Sandra K Techo 14.89 100.1
SK-IU-020* 90.25 93.95 3.70 Sandra K Techo 8.54 37.7
SK-IU-022* 59.68 60.39 0.71 Sandra K Techo 17.18 33.6
El Silencio Mine (Attachment 4)
ES-IU-040* 60.14 60.60 0.46 HW1 Manto Vein 57.58 441.1
ES-IU-041* 84.36 85.60 1.24 HW1 Manto Vein 29.85 25.5
Cristales Vein (Attachment 5)
CR-ES-005 356.91 357.42 0.51 Cristales Vein 7.58 39.2
* Denotes underground drill holes. The under ground holes were drilled at -6 to -58 degrees from the horizontal. Sample
grades over 7.0 g/t Au reported. Grades are for quartz vein intersections and are length -weighted composites. 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. Abbreviations: HW: hanging wall vein.
Please refer also to the attached illustrative maps related to the Providencia, Sandra K, El Silencio and
Cristales drilling programs.
Qualified Person
Dr. Stewart D. Redwood, PhD, FIMMM, 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.
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Quality Assurance and Quality Control
The Segovia samples were pr epared 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 over 10.0 g/t gold were re-assayed by 30 g fire assay with
gravimetric finish. Silver was assayed by aqua regia digestion and AAS finish. Silver samples above 500
g/t were re-assayed by 30 g fire assay with gravimetric finish. Blank, standard and duplicate samples
were routinely inserted for quality assurance and quality control.
Acquisition of Additional Approximately 2% Interest in Sandspring Resources Ltd. (“Sandspring”)
Gran Colombia also announced today that it completed the purchase of an additional 4,000,000 common
shares in Sandspring (TSX-V: SSP, OTCQX: SSPXF) yesterday at a price of CA$0.25 per share in a
private transaction (the “Transaction”) for total cash consideration of approximately US$772,000. The
additional shares, which are subject to a hold period expiring November 21, 2018, were acquired for
investment purposes and Gran Colombia has no present intention to dispose of or acquire f urther
securities of Sandspring , although the Company may in the future acquire or disp ose of securities of
Sandspring, through the market, privately or otherwise, as circumstances or market conditions warrant.
Through completion of the Transaction, Gran Colombia has increased its holdings in Sandspring to an
aggregate of 35 ,000,000 common shares and 16,000,000 share purchase warrants. Each share
purchase warrant entitles the Company to purchase one additional share of Sandspring at CA $0.40 for a
period of sixty (60) months. The 35,000,000 common shares represent approximately 16.69 % of the
outstanding common shares of Sandspring. Assuming that Gran Co lombia but no other warrant holder
exercises and holds its share purchase warrants, when combined with its existing ownership, Gran
Colombia would have control and di rection over 51 ,000,000 common shares representing approximately
22.60% of the then outstanding common shares of Sandspring.
Copies of the early warning report filed by Gran Colombia are available under Sandspring’s profile on
SEDAR (www.sedar.com) or by contacting Gran Colombia directly at the address below.
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 Operatio ns. 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 , 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 v ariations) of such words and phrases, or state that certain actions, events or results "may",
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"could", "would", "might" or "will" be taken, occur or be achieved. Forward -looking statements involve
known and unknown risks, uncertainties and other factors wh ich 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 t o 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, 2018 and Management’s Discussion and Analysis dated as of August 14 , 2018, both of which are
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
Photos accompanying this announcement are available at:
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Attachment 1 - Providencia Infill Drilling Grade Intercepts
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PHONE: 416-360-4653; FAX: 416-603-4653
Attachment 2 - Sandra K Infill Drilling Grade Intercepts
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PHONE: 416-360-4653; FAX: 416-603-4653
Attachment 3 - Sandra K Infill Drilling Grade Intercepts