Segovia Operations Up 18% For Gold Production

TORONTO - Gran Colombia Gold Corp. reported that it produced a total of 51,699 ounces of gold in the fourth quarter of 2017, up 26% over the fourth quarter last year. This brings the total gold production for the year to 173,821 ounces, up 16% over 2016 and surpassing its guidance for the current year.

The Segovia Operations, in Colombia, continued to be the key catalyst for growth in Gran Colombia’s gold production with 45,588 ounces of gold produced in the fourth quarter of 2017, up 31% over the fourth quarter last year. This brings the total for the Segovia Operations for 2017 to 148,659 ounces, up 18% over 2016 and above guidance for the current year. Company-operated mining areas, led by the continued high grade trend at the Providencia mine this year, produced 17,761 ounces of gold in the fourth quarter of 2017, up 78% over the fourth quarter last year, bringing the full year total to 50,248 ounces, up 67% over 2016. In the fourth quarter of 2017, the Company also benefitted from the additional material sourced from contract miners under new operating contracts entered into since August 2017 under which Gran Colombia is retaining between 10% and 60% of the spot price for each ounce of gold produced. Contract mining production totaled 27,827 ounces of gold in the fourth quarter of 2017, up 12% over the fourth quarter last year. For the full year, contract mining production increased 2% over 2016 to 98,411 ounces in 2017.

At the Marmato Operations, also in Colombia, gold production in the fourth quarter of 2017 amounted to 6,111 ounces, comparable to the fourth quarter last year. This brings the full year total to 25,162 ounces, up 7% over its 2016 annual production and within its guidance range for the current year.