Gran Colombia Gold Corp. (TSX:GCM) announced today an updated
Mineral Resource estimate (“2017 MRE”) for its Marmato Project in
Colombia that reflects a change in the focus of the mining style
from open pit to underground mining, an increase in cut-off grade
for the mineral resource estimate and the addition of new material
from the deep mineralization below the existing Mineros Nacionales
mine. As summarized in the table below, the 2017 MRE contains a
total of 3.9 million ounces of gold and 22.6 million ounces of
silver in the Measured and Indicated categories and an additional
4.2 million ounces of gold and 15.0 million ounces of silver in the
Inferred category.
Serafino Iacono, Executive Co-Chairman of Gran
Colombia, commented: “We are pleased with the progress we have been
making at our Segovia Operations and now feel comfortable in
turning our attention toward evaluating the potential to generate a
return on our investment at the Marmato Project. In the current
gold market, we feel it is prudent to change our approach, shifting
from a large-scale, low grade open pit operation as previously
conceived to a smaller-scale, higher grade underground mining
operation. In addition, we intend to implement our contract mining
model to incorporate production from the ancestral and artisanal
miners working within our titles. We have already commenced some
high level scoping analysis for future mining operations and over
the next six months we will be preparing a preliminary economic
assessment targeting higher grade material with the intention of
developing an expanded underground mining operation at Marmato with
a minimum 12-year mine life and life-of-mine gold production of
more than 1.5 million ounces. The deep mineralization at Marmato
remains open along strike and at depth and we expect that our 2018
exploration program will include substantial additional drilling to
continue expanding our understanding of the total mineral resource
potential of the deposit.”
Category |
Quantity |
Grade |
Metal |
Au |
Ag |
Au |
Ag |
Mt |
g/t |
g/t |
000's oz |
000's oz |
Underground Vein** |
|
|
|
|
|
Measured |
2.6 |
4.7 |
21.3 |
396 |
1,774 |
Indicated |
10.7 |
4.6 |
22.3 |
1,583 |
7,660 |
Measured and Indicated |
13.3 |
4.6 |
22.1 |
1,979 |
9,434 |
Inferred |
9.4 |
4.2 |
18.9 |
1,275 |
5,722 |
Underground Porphyry*** |
|
|
|
|
|
Measured |
|
|
|
|
|
Indicated |
27.0 |
2.1 |
14.9 |
1,858 |
12,892 |
Measured and Indicated |
27.0 |
2.1 |
14.9 |
1,858 |
12,892 |
Inferred |
13.3 |
1.8 |
15.4 |
777 |
6,655 |
Underground Deeps Zone*** |
|
|
|
|
|
Measured |
|
|
|
|
|
Indicated |
0.9 |
2.0 |
8.0 |
60 |
235 |
Measured and Indicated |
0.9 |
2.0 |
8.0 |
60 |
235 |
Inferred |
29.3 |
2.3 |
2.8 |
2,142 |
2,628 |
Underground Combined |
|
|
|
|
|
Measured |
2.6 |
4.7 |
21.3 |
396 |
1,774 |
Indicated |
38.6 |
2.8 |
16.7 |
3,501 |
20,787 |
Measured and Indicated |
41.2 |
2.9 |
17.0 |
3,897 |
22,561 |
Inferred |
52.0 |
2.5 |
9.0 |
4,194 |
15,005 |
* Mineral resources are not mineral
reserves and do not have demonstrated economic viability. All
figures are rounded to reflect the relative accuracy of the
estimate. All composites have been capped where
appropriate.** Vein mineral resources are reported at a
cut-off grade of 1.9 g/t. Cut-off grades based on a price of
US$1,400 per ounce of gold, suitable benchmarked technical and
economic parameters and gold recoveries of 90 percent for
underground resources, without considering revenues from other
metal.*** Porphyry and Deeps mineral resources are reported
at a cut-off grade of 1.2 g/t. Cut-off grades based on a price of
US$1,400 per ounce of gold, suitable benchmarked technical and
economic parameters and gold recoveries of 90 percent for
underground resources, without considering revenues from other
metal.
The 2017 MRE was prepared by SRK Consulting
(U.S.), Inc. (“SRK”) and represents a notable change in the defined
mineral resource from the previous Mineral Resource estimate dated
as of August 7, 2012 (“2012 MRE”) due to the following key
factors:
- No open pit Mineral Resources have been declared;
- Increase in the cut-off grades used from 0.3 g/t in the 2012
MRE to 1.2 g/t and 1.9 g/t for the different mineralization styles
in the 2017 MRE;
- Change in the classification strategy which previously assumed
large bulk mining where local variability in the grades would be
more smoothed over annual production periods, compared to the
requirement to have sufficient geological and grade confidence
within the veins for the definition of stope design;
- Major focus on modelling of the geological continuity in the
veins has resulted in reduced tonnages but higher grades;
- Increase in the cut-off grade used to define the mineralized
porphyry units, which has resulted in more discrete zones
(increasing the average grades from the range from 0.9 to 1.0 g/t
in the 2012 MRE to 1.2 to 1.3 g/t in the 2017 MRE); and
- Additional “Deeps Zone” mineralization included for the first
time in the 2017 model at depth within the Inferred category.
The broad zones of veinlet mineralization
(“grade shells”) modelled initially during the 2012 MRE typically
varied from 10 m to 230 m wide, reaching up to 340 m wide in areas
of significant veinlet accumulation, whilst extending with good
geological continuity for between 200 m and approximately 950 m
along strike, and between 100 m and 900 m down dip. SRK has updated
these domains during the 2017 MRE using more discrete zones and
application of a 0.5 g/t cut-off grade. At depth within the central
portion of the deposit, SRK has noted a zone of elevated grades
which has been referred to as the higher grade (>2.0 g/t) “Deeps
Zone”. This zone is indicated to be continuous along strike for
approximately 350 m and has a confirmed down dip extent that
reaches up to 500 m, with a thickness that varies between 35 m and
150 m. The Deeps Zone is still open along strike and at depth.
SRK highlights that the current Deeps Zone
mineralization represents a notable change in the style of
mineralization and considerations for mining methods at the Marmato
Project. The Deeps Zone mineralization consists of a network of
very thin sulfide veinlets, mainly pyrrhotite±chalcopyrite, hosted
by a week argillic alteration style.
SRK has defined the proportions of 2017 MRE to
have potential for economic extraction for the mineral resource
based on two separate cut-off grades, relating to the different
mining methods involved. The initial cut-off is based on the mining
of the veins using the current mining processes and assumed costs,
with a second method (long-hole) defined for mining the Deeps Zone
and potentially areas of wider porphyry mineralization in the upper
levels.
The estimation domains have therefore been
grouped for the 2017 MRE into veins, porphyry and Deeps Zone
mineralization. The veins account for the veins, halos and splay
material and have used a 1.9 g/t Au cut-off, while all other
domains (grade-shell, deeps, porphyry) have used a lower cut-off of
1.2 g/t to account for the larger bulk mining methods involved.
The effective date of the 2017 MRE is June 16,
2017, which is the last date assays were provided to SRK. The 2017
MRE is based on databases that comprise a combination of historical
and recent diamond core and underground channel samples. In total,
there are some 1,165 diamond drillholes for a combined length of
240,855 m; plus 13,489 individual underground channel samples,
inclusive of current mine sampling contained in the databases. The
2017 MRE has been reported according to Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Standards and will be
supported by a National Instrument 43-101 independent report which
will be published and filed on the Company’s website and SEDAR
profile within the next 45 days.
Qualified Person
Ben Parsons, Senior Resource Geologist with SRK,
prepared the 2017 MRE and is a Qualified Person as defined by NI
43-101. For detailed information on the key assumptions, parameters
and methods used to estimate the mineral resources, along with
other information about Marmato, please refer to the Technical
Report to be filed.
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 Operations and
Marmato Project. 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
the Company’s page 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 the future financial or operating performance of
the Company and future plans for its operations. 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, 2017, 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, Please Contact:Mike
DaviesChief Financial Officer(416)
360-4653investorrelations@grancolombiagold.com
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