Gran Colombia GOLD Provides Exploration Update ON Its Zancudo Project
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NEWS RELEASE
GRAN COLOMBIA GOLD PROVIDES EXPLORATION UPDATE ON ITS ZANCUDO PROJECT
TORONTO, CANADA, Tuesday, October 9, 2018 – Gran Colombia Gold Corp. (TSX: GCM, OTCQX: TPRFF)
provided an update today regarding the ongoing diamond drilling program on the Zancudo Project, Colombia
(the “Project”) . Exploration and drilling on the Project is being carried out by IAMGOLD Corporation
(“IAMGOLD”) under an option agreement (the “Option Agreement”) for the exploration and potential purchase
of an interest in the Project as announced on March 16, 2017.
Serafino Iacono, Executive Co -Chairman of Gran Colombia Gold, commented , "IAMGOLD appears to be
getting results thus far that are consistent with our earlier exploration work on the Project. We are pleased with
their approach in the drilling to-date and encouraged by the identification of a new manto structure in the North
Zone and a potential ore shoot on both the Manto Antiguo and Manto Inferior structures in the South Zone, all
of which merit further evaluation. IAMGOLD has approximately 2,000 meters of drilling to complete for the
remainder this year to confirm the continuity of the new manto structure in the North Zone."
The Project, located in the Titiribí mining district of Antioquia, Colombia, comprises a historical gold mine (the
Independencia Mine) set in the Middle Cauca Gold Belt, with an estimated total historical pr oduction of 1.5
Mozs to 2.0 Mozs of gold equivalent with recovered grades of 14.6 g/t Au and 108 g/t Ag. The Independencia
Mine mined an epithermal intermediate sulphidation type vein system that was exploited over 3.5 kilometers
strike length and known depths of approximately 300 meters. Gran Colombia acquired the Project in 2010 and
completed a total of 14,000 meters of drilling in 2011 and 2012 focused on defining new potential resources
by testing the strike and shallow dip extensions of the northerly -trending Santa Catalina fault structure and a
number of east-west trending stacked veins, or “mantos”, that merge into this master structure, to the south of
the historical Independencia Mine. Gran Colombia halted further exploration work on this property following
the gold price collapse in 2013 to focus on the modernization project at its Segovia Operations. In March 2017,
Gran Colombia announced it had signed an Option Agreement with IAMGOLD.
Under the Option Agreement, IAMGOLD was granted an option to acquire an initial undivided 65% interest
(the "First Option") in the Project by incurring an aggregate of US$10 million of mineral exploration expenditures
over a six-year period, subject to meeting specified annual work commitments during the First Option period,
of which the first US$1 million incurred within the first year was a firm commitment and IAMGOLD has the right
to cease its obligations at any time thereafter. IAMGOLD was also granted an additional option (the "Second
Option") to acquire a further 5% undivided interest for an aggregate 70% undivided interest in the Project by
completing a feasibility study within three years after exercising the First Option. Upon exercise of the First
Option or the Second Option, as the case may be, the parties will form a joint venture to hold the Project, to
advance the exploration and, if feasible, to advance the development a nd mining of any commercially
exploitable ore body.
Drilling Update
IAMGOLD commenced drilling at the Project in September 2017 and has had one diamond drill rig in operation
since that time. The 2017 exploration diamond drilling program from surface was mainly focused on testing the
continuity along strike and down dip of the stacked mantos and the Santa Catalina structure in the north and
west sectors of the project. A total of 3,905 meters was completed in 11 drill holes.
The diamond drilling program for 2018, also from surface, is aimed to test the zone where the stacked mantos
merge into the Santa Catalina fault , which usually shows wider and higher -grade intercepts. To-date, 12 drill
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holes have been completed , totaling approximately 4,017 meters of the 6,000 meters planned for 2018 , with
results received for the first 10 holes which are reported here.
Key Highlights and Intercepts
Drill hole 17PZ -068 successfully extended the Santa Catalina structure for 300 meters to the north.
Assays received include 4.1 g/t Au and 681.0 g/t Ag (13.6 g/t Au Eq) over 6.7 meters.
In the South Zone of the project, multiple higher-grade intercepts outline a potential ore shoot on both
the Manto Antiguo and Manto Inferior structures. This is corroborated by some high-grade intercepts
from the previous drilling campaigns. Some of the best intercepts are as follows:
o Santa Catalina: drill hole 17PZ-075 includes 6.0 g/t Au and 2.9 g/t Ag (6.1 g/t Au Eq) over 2.7
meters.
o Manto Antiguo: drill hole 17PZ-073 includes 6.1 g/t Au and 61.3 g/t Ag (6.9 g/t Au Eq) over 2.5
meters.
o Manto Inferior: drill hole 17PZ-075 includes 2.7 g/t Au and 89.0 g/t Ag (4.0 g/t Au Eq) over 5.5
meters.
In the North Zone of the Project, old mining workings on the Manto Antiguo structure were intercepted
with the wall rock showing good grade s, such as 5.2 g/t Au and 87.3 g/ t Ag (6.4 g/t Au Eq) over 4.6
meters (hole 17PZ -086). With this grade, the North Z one of the Project, which was exploited by
artisanal miners, takes a higher exploration interest.
In the North Zone of the Project, a new manto structure was intersected at a vertical depth of
approximately 200 meters, below the Manto Inferior structure, with drill hole 17PZ-067 which returned
3.7 g/t Au and 17.7 g/ t Ag (4.0 g/t Au Eq) over 1.3 meters . The remaining drill holes of the 2018
diamond drilling program have been designed to confirm the continuity of this new manto to the north.
Wide intercepts in the sedimentary sequences were intersected, such as: drill hole 17PZ-068 with 3.4
g/t Au and 20.5 g/t Ag (3.7 g/t Au Eq) over 8.0 meters, and 17PZ-078 which intersected 3.1 g/t Au and
5.7 g/t Ag (3.2 g/t Au Eq) over 4.0 meters.
Link-structures in between the stacked mantos were identified, which can be interpreted as tensional
structures. The best intercept from drill hole 17PZ-073 includes 3.8 g/t Au and 34.0 g/t Ag (4.3 g/t Au
Eq) over 3.8 meters.
The following table is a list of significant intersections from the 2017 and 2018 diamond drill holes
announced in this news release:
Year Hole ID Target From m To m Length (m) Au (g/t) Ag (g/t) AuEq g/t Map ID (2)
2017
17PZ-068 Sedimentary 62.94 70.89 7.95 3.43 20.5 3.7 01
17PZ-068 incl. Sedimentary 66.63 67.30 0.67 6.49 115.0 8.1
17PZ-068 incl. Sedimentary 70.40 70.89 0.49 18.55 14.1 18.7
17PZ-068 2nd Santa Catalina 83.30 90.03 6.73 4.14 681.0 13.6 02
17PZ-068 3rd Manto Nuevo 1 312.00 314.40 2.40 3.72 55.0 4.5 03
17PZ-068 incl. Manto Nuevo 1 312.53 313.58 1.05 8.29 116.0 9.9
17PZ-070 Other Structures 231.44 233.54 2.06 2.95 12.3 3.1 04
17PZ-071 Manto Antiguo 164.15 166.28 2.13 3.34 27.3 3.7 05
17PZ-073 Manto Antiguo 117.55 120.10 2.55 8.92 514.9 16.1 06
17PZ-073 incl. Manto Antiguo 117.60 118.20 0.70 32.90 1970.0 60.4
17PZ-073 2nd Manto Antiguo 149.00 151.50 2.50 6.06 61.3 6.9 07
17PZ-073 3rd Other Structures 216.90 220.70 3.80 3.78 34.0 4.3 08
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17PZ-073 incl. Other Structures 216.90 217.70 0.80 13.15 35.5 13.6
17PZ-073 incl. Other Structures 220.05 220.70 0.65 5.93 155.0 8.1
17PZ-075 Santa Catalina 24.20 26.90 2.70 6.01 2.9 6.1 09
17PZ-075 incl. Santa Catalina 24.20 25.10 0.90 17.29 6.6 17.3
17PZ-075 2nd Other Structures 79.35 81.50 2.15 2.63 27.6 3.0 10
17PZ-075 incl. Other Structures 79.35 79.95 0.60 9.43 98.7 10.8
17PZ-075 3rd Manto Inferior 227.20 232.65 5.45 2.75 89.0 4.0 11
17PZ-075 incl. Manto Inferior 231.70 232.65 0.95 2.85 453.0 9.2
17PZ-076 Manto Antiguo 188.63 190.65 2.02 3.52 27.7 3.9 12
17PZ-076 2nd Manto Inferior 250.37 253.90 3.53 3.58 10.8 3.7 13
17PZ-077 Manto Antiguo 153.20 155.20 2.00 2.38 41.7 3.0 14
17PZ-077 incl. Manto Antiguo 153.20 153.70 0.50 9.51 166.0 11.8
2018
17PZ-078 Sedimentary 95.44 99.39 3.95 3.12 5.7 3.2 15
17PZ-078 incl. Sedimentary 95.44 96.20 0.76 12.8 8.8 12.9
17PZ-078 2nd Manto Antiguo 224.25 227.10 2.85 3.76 153.2 5.9 16
17PZ-078 3rd Manto Antiguo 231.58 234.07 2.50 6.40 34.7 6.9 17
17PZ-080 Manto Antiguo 131.40 133.40 2.00 2.84 49.6 3.5 18
17PZ-080 2nd Manto Antiguo 153.10 157.54 4.44 4.47 172.6 6.9 19
17PZ-080 incl. Manto Antiguo 153.61 154.48 0.87 14.90 753.0 25.4
17PZ-082 Manto Antiguo 163.44 165.62 2.18 3.05 255.6 6.6 20
17PZ-082 incl. Manto Antiguo 163.40 164.80 1.40 4.84 409.0 10.5
17PZ-084 Manto Inferior 217.10 220.58 3.48 2.44 33.4 2.9 21
17PZ-086 Manto Antiguo 40.72 45.30 4.58 5.15 87.3 6.4 22
17PZ-086 (4) incl. Manto Antiguo 43.22 45.30 2.08 7.43 118.0 9.1
(1) The table shows intersections above a cut -off of 2 m @ 3 g/t AuEq . High grade samples above 10 g/t Au and 100 g/t Ag are
listed as sub -intervals. Holes 17PZ-067, 17PZ-069, 17PZ-072, 17PZ-074, 17PZ-079, 17PZ-081, 17PZ-083, 17PZ-085 and
17PZ-087 do not have intersections above the cut-off width and grade.
(2) Refer to Attachment 1 – Zancudo Plan View for location of the drill holes.
(3) The intervals are core lengths. The true widths are estimated to be 80% to 90% of the lengths.
(4) The sampled interval has no recovery of 1.2 m.
(5) AuEq g/t calculated using prices of US$1,275/oz gold and US$17.80/oz silver. No adjustments were made for recovery as the
project is at an exploration stage and metallurgical data to allow for estimation of recoveries is not yet available.
Please refer also to Attachment 1 for a plan view of the Project.
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.
Quality Assurance and Quality Control
The IAMGOLD samples from the Project were prepared by ALS Minerals (ISO 9001:2015) at their laboratory
in Medellin, Colombia and assayed by them at their laboratory in Lima, Peru . Gold was assayed by 50 g fire
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assay with AAS finish. Samples over 10.0 g/t gold were re-assayed by 50 g fire assay with gravimetric finish.
Silver and other elements were analyzed in a multi -element package by aqua regia digestion and ICP-AES
finish. Silver samples above 100 g/t were re-assayed by 50 g fire assay with gravimetric finish. Blank, standard
and duplicate samples were routinely inserted 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 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 , including the exploration
programs being conducted by third parties. 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, 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
A photo accompanying this announcement is available at:
http://www.globenewswire.com/NewsRoom/AttachmentNg/5517a17d-6615-4059-bd5b-044302998606
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Attachment 1 – Zancudo Plan View