Issue link: http://resourceworld.uberflip.com/i/1239546
50 www.resourceworld.com A P R I L / M A Y 2 0 2 0 GRAN COLOMBIA largest underground gold miner in Colombia by David Duval C anada-based Gran Colombia Gold Corp. [GCM-TSX; TPRFF-OTCQX] has become the largest underground gold and silver producer in Colombia, a country that is uniquely situated in both South and North America. Currently focused on exploration, expansion and modernization activities at its flagship high-grade Segovia Operations, Gran Colombia is also exploring its multi- million ounce Marmato Project, while moving toward a major expansion of underground gold mining operations. The company's high-grade Segovia Operations are fueling its production growth which reached 240,000 ounces of gold output in 2019 – up 10% over 2018. Head grades averaged 16.4 g/t gold in 2019. In recent years, Gran Colombia has implemented a number of cost savings ini - tiatives that are expected to see its All-In Sustaining Cost (AISC) remain below US $950/oz for 2019. Choosing Colombia as a base of opera- tions has proven to be a smart investment decision. The Colombian government is very supportive of foreign investment and it has the best investor protection in Latin America. Mining is a significant economic contributor to the Colombian economy and one of the country's largest export sectors. Segovia Operations encompass an area of approximately 9,000 hectares and include the El Silencio, Providencia and Sandra K underground mines, along with the Carla underground mine located 10 km southeast of Segovia. Mining opera - tions incorporate both the company mines and artisanal production from local third-party contract miners, in the com- pany's mining title, delivering ore to Gran Colombia's plant which has a capacity up to 1,500 tpd. Since taking control of the assets in 2010, Gran Colombia has initiated an extensive exploration and drilling program around its existing mines to identify new resources for the future expansion of production. A com - prehensive modernization program is being undertaken at the historical mines, with an emphasis on mechanization, improving pro- duction efficiency and safety, and reducing all-in sustaining costs. The company has agreements at its Segovia Operations with over 30 third- party miner groups within designated mining areas outside of the company's mines. Gran Colombia pays for recovered gold at a fixed price, with the contractors managing their miners and funding their own costs. The processing of ore, along with gold and silver sales, is handled by the company which also provides health and safety training to the miners. Acquired in 2011, the Marmato Project contains estimated resources of 8.0 mil - lion ounces of gold and almost 38 million ounces of silver, all within the heart of the Middle Cauca gold district. Located by the Pan American Highway, the project has excellent infrastructure with access to Medellin to the north and Manizales to the south. Power is available from the Photo courtesy Gran Colombia Gold Corp.