Gran Colombia Gold Corp. (TSX: GCM) (OTCQX: TPRFF) announced today that its 2018 drilling program at its Segovia Operations has identified a new structure at the Sandra K mine, interpreted as a splay off the Techo Vein and termed the 6640 Vein. The Company also provided an update on further assay results from the ongoing underground diamond drilling program at its Segovia Operations. To date, the Company has completed 128 holes at Segovia totaling approximately 16,200 meters, representing 81% of its initially planned 20,000 meters to be drilled in 2018. As announced on August 7, 2018, the Company has since added another approximately 10,000 meters of directional drilling to its 2018 program, expected to commence in early November, to follow up on the high-grade results from the ongoing channel sampling program at its El Silencio mine and extend the north, middle and south ore-shoots down-plunge with the objective of testing extensions another 200 meters below the currently delineated resource.
Serafino Iacono, Executive Co-Chairman of Gran Colombia, commented, “As we look toward our opportunities for further production and cash flow growth in 2019 and beyond, we are pleased with the continuing high-grade results from our ongoing drilling program at our Segovia Operations aimed at increasing the confidence in our mineral resources at our three producing mines and encouraged by the initial results from our step-out drilling at the Cristales Vein, one of the other 24 known vein systems in our Segovia title which has the potential to become a future mining operation.”
Segovia Drilling Update
Gran Colombia currently has four diamond drill rigs in operation at Segovia, with three rigs carrying out resource definition within the underground developments of the Providencia, Sandra K and El Silencio mines and one drill rig operating from surface at Campo Alegre targeting the down-dip extension of the Cristales Vein to the north of the El Silencio mine.
Key Highlights and Intercepts Since Our June 18, 2018 Press Release
The table below lists the key intercepts from the 2018 drilling program since the last press release issued on June 18, 2018:
|Hole||From (m)||To (m)||Width (m)||Vein||Au (g/t)||Ag (g/t)|
|Providencia Mine (Attachment 1)|
|Hole||From (m)||To (m)||Width (m)||Vein||Au (g/t)||Ag (g/t)|
|Sandra K Mine (Attachments 2 and 3)|
|SK-IU-006*||63.47||64.73||1.26||Sandra K Techo||10.79||151.8|
|SK-IU-010*||117.05||118.30||1.25||Sandra K Techo||15.75||96.2|
|“||69.89||72.19||2.30||Sandra K Techo||12.28||114.9|
|SK-IU-012*||117.40||120.45||3.05||Sandra K Techo||11.98||61.2|
|SK-IU-013*||105.60||110.78||5.18||Sandra K Techo||7.72||25.9|
|including||105.60||108.60||3.00||Sandra K Techo||13.13||38.2|
|SK-IU-016*||69.76||72.30||2.54||Sandra K Techo||9.11||43.4|
|SK-IU-018*||80.80||81.70||0.90||Sandra K Techo||8.0||51.3|
|SK-IU-019*||94.42||98.08||3.66||Sandra K Techo||7.34||45.3|
|including||94.42||95.50||1.08||Sandra K Techo||14.89||100.1|
|SK-IU-020*||90.25||93.95||3.70||Sandra K Techo||8.54||37.7|
|SK-IU-022*||59.68||60.39||0.71||Sandra K Techo||17.18||33.6|
|El Silencio Mine (Attachment 4)|
|ES-IU-040*||60.14||60.60||0.46||HW1 Manto Vein||57.58||441.1|
|ES-IU-041*||84.36||85.60||1.24||HW1 Manto Vein||29.85||25.5|
|Cristales Vein (Attachment 5)|
* Denotes underground drill holes. The underground holes were drilled at -6 to -58 degrees from the horizontal. Sample grades over 7.0 g/t Au reported. Grades are for quartz vein intersections and are length-weighted composites. The width is the sample length and is not necessarily the true width of the vein. All gold and silver grades are uncut and are not diluted to a minimum mining width. Abbreviations: HW: hanging wall vein.
Please refer also to the attached illustrative maps related to the Providencia, Sandra K, El Silencio and Cristales drilling programs.
Dr. Stewart D. Redwood, PhD, FIMMM, Senior Consulting Geologist to the Company, is a qualified person as defined by National Instrument 43-101 – Standards of Disclosure or Mineral Projects and prepared or reviewed the preparation of the scientific and technical information in this press release. Verification included a review of the quality assurance and quality control samples, and review of the applicable assay databases and assay certificates.
Quality Assurance and Quality Control
The Segovia samples were prepared and assayed by SGS Laboratories Ltd (ISO 9001:2008) at their laboratory in Medellin, Colombia. Gold was assayed by 30 g fire assay with atomic absorption spectrophotometer (“AAS”) finish. Samples over 10.0 g/t gold were re-assayed by 30 g fire assay with gravimetric finish. Silver was assayed by aqua regia digestion and AAS finish. Silver samples above 500 g/t were re-assayed by 30 g fire assay with gravimetric finish. Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.
Acquisition of Additional Approximately 2% Interest in Sandspring Resources Ltd.
Gran Colombia also announced today that it completed the purchase of an additional 4,000,000 common shares in Sandspring (TSX-V: SSP) (OTCQX: SSPXF) yesterday at a price of CA$0.25 per share in a private transaction for total cash consideration of approximately US$772,000. The additional shares, which are subject to a hold period expiring November 21, 2018, were acquired for investment purposes and Gran Colombia has no present intention to dispose of or acquire further securities of Sandspring, although the Company may in the future acquire or dispose of securities of Sandspring, through the market, privately or otherwise, as circumstances or market conditions warrant.
Through completion of the Transaction, Gran Colombia has increased its holdings in Sandspring to an aggregate of 35,000,000 common shares and 16,000,000 share purchase warrants. Each share purchase warrant entitles the Company to purchase one additional share of Sandspring at CA$0.40 for a period of sixty (60) months. The 35,000,000 common shares represent approximately 16.69% of the outstanding common shares of Sandspring. Assuming that Gran Colombia but no other warrant holder exercises and holds its share purchase warrants, when combined with its existing ownership, Gran Colombia would have control and direction over 51,000,000 common shares representing approximately 22.60% of the then outstanding common shares of Sandspring.
Copies of the early warning report filed by Gran Colombia are available under Sandspring’s profile on SEDAR (www.sedar.com) or by contacting Gran Colombia directly at the address below.
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 Segovia and Marmato Operations. Gran Colombia is continuing to focus on exploration, expansion and modernization activities at its high-grade Segovia Operations.
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