TORONTO, Jan. 25, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM)
announced full year 2012 production of 100,895 ounces of gold, a 10%
increase over 2011.
Gold production at the company's Segovia and Marmato Operations in the
fourth quarter of 2012 was 16,817 and 5,299 ounces respectively, for a
total 2012 production of 100,895 ounces of gold. After successfully
expanding the company's Segovia Operations to a daily production rate
of 1,066 tonnes per day ("tpd") in September, production remained on
track, averaging 995 tpd until mid-November. Over a 25-day period
starting in mid-November, unexpected power interruptions at the local
utility provider's substation resulted in unplanned downtime on almost
a daily basis at the Maria Dama plant, reducing mill throughput by 38%
to an average of 613 tpd over this period. Once normal operations
resumed in the second week of December, the company was able to
increase mill throughput at the Segovia Operations over the balance of
December to an average of 836 tpd.
A summary of gold and silver production for the fourth quarter and full
year is as follows:
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Fourth Quarter
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Full Year
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2012
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2011
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2012
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2011
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Segovia Operations
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Gold produced (ounces)
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16,817
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20,930
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79,178
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68,704
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Silver produced (ounces)
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25,081
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18,404
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88,856
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64,633
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Marmato Underground
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Gold produced (ounces)
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5,299
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6,049
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21,717
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22,715
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Silver produced (ounces)
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7,918
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9,838
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35,176
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35,116
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Total Company
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Gold produced (ounces)
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22,116
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26,979
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100,895
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91,419
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Silver produced (ounces)
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32,999
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28,242
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124,032
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99,749
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In addition to the previously announced appointment of Gabriel Gaviria
as Vice President of Mining, effective immediately, Miguel Vallejo has
been appointed as Plant Superintendent at Segovia, Vicente Mendoza will
lead the Segovia expansion project to build the new Pampa Verde mine
and processing plant and Alessandro Cecchi will continue to be
responsible for the company's exploration programs. Each of these
leaders brings over 20 years of mining experience in Latin America to
their new roles and will report directly to Maria Consuelo Araujo,
Chief Executive Officer. Don East, Chief Operating Officer, has left
the company, effective immediately. Gran Colombia thanks Mr. East for
his contributions and wishes him well in his future endeavours.
"Gran Colombia is committed to closing the value gap for our
shareholders. The management changes were implemented to provide
better focus and accountability on the strategic imperatives of the
company," said Serafino Iacono, Executive Co-Chairman of Gran Colombia
Gold. "We remain focused on increasing cash flows from our Segovia
Operations by doubling our throughput at our existing Segovia
operations; on completing the Marmato prefeasibility study and
advancing the project to the next phase; and on successfully
implementing the Pampa Verde project to build a new, modern mine and
plant at Segovia that will significantly reduce cash costs and increase
production".
Gran Colombia has completed the internal work on the Marmato
prefeasibility study and has engaged Roscoe Postle & Associates to
undertake the activities required to certify the study in accordance
with NI43-101 guidelines. Roscoe Postle and Associates commenced its
work with a site visit in early January and is finalizing its work plan
to certify the prefeasibility study.
The company expects to provide its 2013 outlook together with its fourth
quarter and full year 2012 results around the last week of March 2013.
About Gran Colombia Gold
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. In addition, Gran Colombia is advancing
a project to develop a large-scale, gold and silver mine at its Marmato
operations.
Additional information on Gran Colombia Gold can be found on the
company's website at www.grancolombiagold.com and by reviewing the company's page on SEDAR at www.sedar.com.
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 its projects and,
specifically, statements concerning anticipated growth in annual gold
production and reduction of cash costs. 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 28,
2012 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.
SOURCE: Gran Colombia Gold Corp.