TORONTO, June 18, 2019 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) announced today that it produced a total of 18,528 ounces of gold in May bringing the total for the first five months of 2019 to 99,601 ounces, up 14% over the first five months of 2018. Gran Colombia’s trailing 12 months’ total gold production at the end of May 2019 of 230,136 ounces is up almost 6% over 2018’s annual production and remains above the top end of the Company’s guidance range for 2019 of between 210,000 and 225,000 ounces.
Lombardo Paredes, Chief Executive Officer of Gran Colombia, commenting on the Company’s latest production results, said, “We have gotten off to a stronger start in 2019 than in other years, setting us up to potentially exceed production guidance for the year. We will continue to monitor our operating performance and reassess our guidance when we report our mid-year production results. With our solid performance to-date and higher spot gold prices, we have the opportunity to use a portion of our free cash flow toward the recently announced NCIBs and have so far have been actively using our daily limit to purchase warrants for cancellation.”
The Segovia Operations continued to exceed expectations in May with gold production of 16,363 ounces bringing the total for the first five months of 2019 to 89,120 ounces, up 15% over the first five months of 2018. Gran Colombia processed an average of 1,144 tonnes per day (“tpd”) in May at its Segovia Operations, up slightly compared to the first four months of the year, with an average head grade of 16 g/t. In May, the Company began to see an expected increase in material from the small contract miners operating within its title, which grew from an average of 191 tpd in the first four months of 2019 to 267 tpd in May with an average grade of approximately 7 g/t. This helped to offset the impact on productivity in May at the Company’s mines following the accident at the Providencia mine which resulted in a temporary decline in tonnes processed from the Company mines in the month. The resultant shift in the mix of material processed in May with a greater contribution coming from the lower grade small contract miners resulted in the lower overall average grade reported for the month for the Segovia Operations. The Company expects to see performance at its own mines return to normal in June and continuation of the increased level of material sourced from the small contract miners going forward. Segovia’s trailing 12 months’ total gold production at the end of May 2019 stood at 204,713 ounces, up 6% over 2018’s annual production.
At the Marmato Operations, May’s gold production of 2,165 ounces brings total production for the first five months of 2019 to 10,481 ounces, up 5% over the first five months of 2018 driven by an increase in tonnes processed this year, and its trailing 12 months’ total gold production at the end of May 2019 to 25,423 ounces, up 2% over 2018’s annual production.
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.
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.
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 production guidance and anticipated business plans or strategies. 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 27, 2019 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, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com