Gran Colombia GOLD Signs Option Agreement with Iamgold to Explore Zancudo Project
GRAN COLOMBIA GOLD CORP.
333 BAY ST., SUITE 1100, TORONTO, CANADA M5H 2R2
T: (416) 360-4653 F: (416) 360-7783
NEWS RELEASE
GRAN COLOMBIA GOLD SIGNS OPTION AGREEMENT WITH IAMGOLD TO EXPLORE ZANCUDO
PROJECT
TORONTO, CANADA, Thursday, March 16, 2017 – Gran Colombia Gold Corp. (TSX: GCM) announced
today that it has signed an option agreement with IAMGOLD Corp. (TSX: IMG) for the exploration and
potential purchase of an interest in the Company’s Zancudo Project.
The Zancudo Project is located in the Titiribí mining district of Antioquia , about 27 km south of Medellin,
and comprises a historical gold mine, the Independencia Mine, in the Middle Cauca Gold Belt that had
produced about 130,000 ounces of gold with recovered grades of 14.6 g/t Au and 108.4 g/t Ag. The
Independencia Mine exploited an epithermal to mesothermal, intermediate sulphidation type vein system
that was exploited over 3.5 km with known depths of over 900m. Gran Colombia had completed a
14,000m drilling program at the Zancudo Project in 2011 and 2012 that focused on defining new potential
resources by following the strike and shallow dip extensions of the Santa Catalina and Manto Antiguo
structures that represent the extension to the south of what was mined in the historical Independencia
Mine. Following the gold price col lapse in 2013, the Company halted further exploration at the project to
focus on the expansion and modernization of its high-grade producing Segovia Operations.
Under the agreement, IAMGOLD has been granted an option to acquire an initial undivided 65% in terest
(the “First Option”) in the Zancudo 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 firs t US$1 million to be incurred within the first y ear is a firm
commitment and IAMGOLD has the right to cease its obligations at any time thereafter.
IAMGOLD has also been granted an additional option (the “Second Option”) to acquire a further 5%
undivided interest for an aggregate 70% undivided interest in the Zancudo 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 Zancudo Project, to advance the exploration and, if feasible, to advance the
development and mining of any commercially exploitable ore body.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian -based gold and silve r exploration, development and production company
with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver
producer in Colombia with several underground mines in operation at its Segovia and Ma rmato
Operations. Gran Colombia is in the midst of an expansion and modernization project at its 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" . 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 va riations) 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 whi ch may cause the actual results,
performance or achievements of Gran Colombia to be materially different from any future results,
GRAN COLOMBIA GOLD CORP.
333 BAY ST., SUITE 1100, TORONTO, CANADA M5H 2R2
T: (416) 360-4653 F: (416) 360-7783
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, 2016, 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 e vents, 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 anticipa ted 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