Gran Colombia Reports Third Quarter 2020 Gold Production of 58,454 Ounces, Up 4% Over the Third Quarter Last Year
Gran Colombia Reports Third Quarter 2020 Gold Production of 58,454 Ounces,
Up 4% Over the Third Quarter Last Year
TORONTO, Oct. 13, 2020 -- Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) announced today that it produced a total
of 19,699 ounces of gold in September 2020 bringing the total for the third quarter of 2020 to 58,454 ounces, up 4% over the
third quarter of 2019. The third quarter 2020 production reflects a 21% improvement over the second quarter of 2020 which had
been adversely impacted by the COVID-19 national quarantine invoked in Colombia in late March. For the first nine months of
2020, the Company has produced a total of 162,929 ounces of gold compared with 174,754 ounces in the first nine months of
last year. The Company is continuing to operate normally at both Segovia and Marmato and remains on track with its annual
guidance of a total of between 218,000 and 226,000 ounces of gold production this year.
Lombardo Paredes, Chief Executive Officer of Gran Colombia, commenting on the Company’s third quarter production results,
said, “Our Segovia Operations had a very good third quarter and, with gold prices better than the first half of this year, are
continuing to drive our free cash flow. At Marmato, after a challenging second quarter coping with the COVID-19 quarantine’s
impact on worker availability, we have now put together two good months in a row during which we have seen a normal
complement of workers and improved head grades. We continue to maintain all of our COVID-19 protocols at our operations
and, at our current pace, we will meet our production guidance for this year. In the third quarter of 2020, Gran Colombia
invested a total of US$25 million in Caldas Gold’s equity and gold notes financings, purchased 350,000 common shares for
cancellation under our NCIB and still saw our cash position increase from US$73 million at the end of June to US$95 million at
the end of September. In addition, Caldas Gold had an unrestricted cash position of approximately US$43 million at the end of
September, including approximately US$35 million raised through its equity bought deal, that will allow it to commence the
expansion project into the Deeps mineralization at its Marmato Project while it finalizes matters to access funds available from
its gold notes offering and the Wheaton stream.”
The Segovia Operations processed an average of 1,405 tonnes per day (“tpd”) in September 2020 with an average head grade
of 14.1 g/t resulting in gold production of 17,196 ounces in the month. This brought Segovia’s total production for the third
quarter of 2020 to 51,555 ounces, up 3% over the third quarter of 2019. Segovia’s third quarter 2020 production reflects a 16%
improvement over the second quarter of 2020 which reflected the impact on the Segovia Operations as the Company adapted
to the new COVID-19 protocols during the initial stages of the national quarantine from late March through the first two weeks
of April. Since mid-April, the Segovia Operations have been operating at a fairly normal level through the COVID-19 national
quarantine. For the first nine months of 2020, the Segovia Operations produced a total of 146,278 ounces of gold compared
with 156,061 ounces in the first nine months last year. Overall, the Segovia Operations have processed an average of 1,259
tpd in the first nine months of 2020 at an average head grade of 14.7 g/t compared with 1,200 tpd at an average head grade of
16.5 g/t in the first nine months last year. The Segovia Operations are expected to produce between 195,000 and 200,000
ounces of gold this year.
Caldas Gold’s Marmato mine delivered a second consecutive month of improved operating results in September 2020. The
plant processed an average of 950 tpd in September at an average head grade of 3.1 g/t resulting in gold production of 2,503
ounces. This brought Marmato’s total gold production for the third quarter to 6,899 ounces, up 11% over the third quarter last
year. Moreover, Marmato’s third quarter 2020 production reflects a 79% improvement over the second quarter of 2020 which
had been adversely impacted by the COVID-19 quarantine’s limitation on the mine’s availability of workers. Since July, the
situation has improved and Caldas Gold is proceeding to implement the optimized mine plan as envisioned in the recently
published Marmato Project prefeasibility study. For the first nine months of 2020, gold production totalled 16,651 ounces
compared with 18,693 ounces produced in the first nine months of 2019. The Marmato mine is expected to produce between
23,000 and 26,000 ounces of gold this year.
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 53.5% of Caldas Gold Corp. (TSX-V: CGC; OTCQX: ALLXF), 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 includes its Zancudo Project in Colombia together with an approximately 20% equity interest
in Gold X Mining Corp. (TSXV: GLDX) (Guyana – Toroparu) 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
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 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 Davies
Chief Financial Officer
(416) 360-4653