Gran Colombia Gold Corp. (TSX: GCM) (OTCQX: TPRFF) provided an update today regarding the ongoing diamond drilling program on the Zancudo Project, Colombia. Exploration and drilling on the Project is being carried out by IAMGOLD Corporation under an option agreement for the exploration and potential purchase of an interest in the Project as announced on March 16, 2017.
Serafino Iacono, Executive Co-Chairman of Gran Colombia Gold, commented, “IAMGOLD appears to be getting results thus far that are consistent with our earlier exploration work on the Project. We are pleased with their approach in the drilling to-date and encouraged by the identification of a new manto structure in the North Zone and a potential ore shoot on both the Manto Antiguo and Manto Inferior structures in the South Zone, all of which merit further evaluation. IAMGOLD has approximately 2,000 meters of drilling to complete for the remainder this year to confirm the continuity of the new manto structure in the North Zone.”
The Project, located in the Titiribí mining district of Antioquia, Colombia, comprises a historical gold mine (the Independencia Mine) set in the Middle Cauca Gold Belt, with an estimated total historical production of 1.5 Mozs to 2.0 Mozs of gold equivalent with recovered grades of 14.6 g/t Au and 108 g/t Ag. The Independencia Mine mined an epithermal intermediate sulphidation type vein system that was exploited over 3.5 kilometers strike length and known depths of approximately 300 meters. Gran Colombia acquired the Project in 2010 and completed a total of 14,000 meters of drilling in 2011 and 2012 focused on defining new potential resources by testing the strike and shallow dip extensions of the northerly-trending Santa Catalina fault structure and a number of east-west trending stacked veins, or “mantos”, that merge into this master structure, to the south of the historical Independencia Mine. Gran Colombia halted further exploration work on this property following the gold price collapse in 2013 to focus on the modernization project at its Segovia Operations. In March 2017, Gran Colombia announced it had signed an Option Agreement with IAMGOLD.
Under the Option Agreement, IAMGOLD was granted an option to acquire an initial undivided 65% interest (the “First Option”) in the Project by incurring an aggregate of US$10 million of mineral exploration expenditures over a six-year period, subject to meeting specified annual work commitments during the First Option period, of which the first US$1 million incurred within the first year was a firm commitment and IAMGOLD has the right to cease its obligations at any time thereafter. IAMGOLD was also granted an additional option (the “Second Option”) to acquire a further 5% undivided interest for an aggregate 70% undivided interest in the Project by completing a feasibility study within three years after exercising the First Option. Upon exercise of the First Option or the Second Option, as the case may be, the parties will form a joint venture to hold the Project, to advance the exploration and, if feasible, to advance the development and mining of any commercially exploitable ore body.
IAMGOLD commenced drilling at the Project in September 2017 and has had one diamond drill rig in operation since that time. The 2017 exploration diamond drilling program from surface was mainly focused on testing the continuity along strike and down dip of the stacked mantos and the Santa Catalina structure in the north and west sectors of the project. A total of 3,905 meters was completed in 11 drill holes.
The diamond drilling program for 2018, also from surface, is aimed to test the zone where the stacked mantos merge into the Santa Catalina fault, which usually shows wider and higher-grade intercepts. To-date, 12 drill holes have been completed, totaling approximately 4,017 meters of the 6,000 meters planned for 2018, with results received for the first 10 holes which are reported here.
Key Highlights and Intercepts
The following table is a list of significant intersections from the 2017 and 2018 diamond drill holes announced in this news release:
|Year||Hole ID||Target||From m||To m||Length (m)||Au (g/t)||Ag (g/t)||AuEq g/t||Map ID (2)|
|17PZ-068||3rd||Manto Nuevo 1||312.00||314.40||2.40||3.72||55.0||4.5||03|
|17PZ-068||incl.||Manto Nuevo 1||312.53||313.58||1.05||8.29||116.0||9.9|
|17PZ-086 (4)||incl.||Manto Antiguo||43.22||45.30||2.08||7.43||118.0||9.1|
Please refer also to Attachment 1 for a plan view of the Project.
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 IAMGOLD samples from the Project were prepared by ALS Minerals (ISO 9001:2015) at their laboratory in Medellin, Colombia and assayed by them at their laboratory in Lima, Peru. Gold was assayed by 50 g fire assay with AAS finish. Samples over 10.0 g/t gold were re-assayed by 50 g fire assay with gravimetric finish. Silver and other elements were analyzed in a multi-element package by aqua regia digestion and ICP-AES finish. Silver samples above 100 g/t were re-assayed by 50 g fire assay with gravimetric finish. Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.
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.
A photo accompanying this announcement is available at
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