Gran Colombia Gold Files National Instrument 43-101 Preliminary Economic Assessment for Its Segovia Project
September 28 2017 - 8:37PM
Gran Colombia Gold Corp. (TSX:GCM) announced today that it has
filed a preliminary economic assessment technical report on its
Segovia Project in Colombia (the “Technical Report”) pursuant to
National Instrument 43‐101 - Standards of Disclosure for Mineral
Projects (“NI 43‐101"). The Technical Report supports the
disclosure made by the Company in its second quarter 2017
Management’s Discussion and Analysis (“MD&A”) dated August 14,
2017 and related news release and is based on the mineral resource
estimate for the Segovia Project with an effective date of March
15, 2017.
The updated life-of-mine (“LOM”) plan included in
the Technical Report foresees a total of 4.1 million tonnes of
material with an average head grade of 8.8 g/t being processed over
an extended mine life through the end of 2026, four years longer
than the previous LOM plans for the Segovia Project. Over this mine
life, the updated LOM plan expects a total of 1.0 million ounces of
gold to be produced at an average LOM total cash cost1 of $697 per
ounce and an AISC1 (excluding corporate G&A) of $896 per ounce.
At an expected long-term gold price of $1,250 per ounce, total LOM
undiscounted after-tax free cash flow from mining operations
amounts to $210 million and the net present value at a 5% discount
rate amounts to $178 million.
The Technical Report bearing an effective date of
August 7, 2017 was prepared by SRK Consulting (U.S.), Inc. (“SRK”)
and is entitled: "NI 43-101 Technical Report Preliminary Economic
Assessment Segovia Project Colombia". The “qualified persons” for
the purposes of NI 43-101 include David Bird, PG, SME-RM, David
Hoekstra, PE, Eric J. Olin, MSc Metallurgy, MBA, SME-RM, MAusIMM,
Jeff Osborn, BEng Mining, MMSAQP, Ben Parsons, MSc, MAusIMM (CP),
Fernando Rodrigues, BS Mining, MBA, MAusIMM, MMSAQP, John Tinucci,
PhD, PE, and Paul Williams, MS Eng, PG, PH, SME-RM.
The report is available on the Company’s website at
www.grancolombiagold.com and under the Company’s profile on SEDAR
at www.sedar.com.
1 Total cash cost per ounce and AISC per ounce are
non-GAAP measures and are disclosed herein in accordance with the
Company’s basis of calculation as disclosed in its MD&A. In the
Technical Report, SRK included $25 per ounce of smelting and
refining costs in these non-GAAP measures which the Company
includes as a deduction in deriving its reported realized gold
price per ounce sold.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based gold and silver
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 Marmato
Operations. Gran Colombia is continuing its 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.
For Further Information, Please
Contact:Mike DaviesChief Financial Officer(416)
360-4653investorrelations@grancolombiagold.com
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