Gran Colombia Gold announces second quarter 2012 results with production of 25,607 ounces of gold

Thursday, Aug 16, 2012

TORONTO, Aug. 14, 2012 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM) announced today the release of its unaudited interim condensed consolidated financial statements for the second quarter ended June 30, 2012 and accompanying management's discussion and analysis. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.

Marmato Project Update

At the Marmato Underground Operations, an average of 740 tpd was milled, producing 4,997 ounces of gold during the second quarter of 2012. Mining operations encountered some lower grade ore zones that resulted in a decrease in average head grades to 2.66 g/t in the second quarter of 2012 and contributing to the 11 percent decrease in the second quarter's gold production compared with the first quarter of 2012. Head grades for the second half of this year are expected to be approximately 2.9 g/t while throughput will be increased to an average of 750 tpd.

Gran Colombia commenced work on a prefeasibility study of the Marmato Project in 2011 to examine a number of feasible development options for mining, processing and mine waste management to provide the foundation for decision making for the optimum development of the project. The options include stand-alone open pit mining, modern underground mining and a phased combination of both open pit and underground mining. As a result of the newly discovered deep zone mineralization that is open at depth with increasing grades, the Company decided to delay completion of the prefeasibility study while its explores the significance of this high grade deep zone mineralization and its impact on the Company's options for the development of the Marmato Project.

About Gran Colombia Gold

Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. In addition, Gran Colombia is advancing a project to develop a large-scale, gold and silver mine at its Marmato operations.

SOURCE Gran Colombia Gold Corp.