“Antioquia Gold” or the “Corporation”)is pleased to provide a summary of July 2020 production results for its Cisneros mining operation, and to announce the progress of other ongoing projects.
Production Summary and Operations Update:
During July 2,292 troy ounces of gold were produced at the Cisneros mining operation. An average of 555 tonnes per day were processed with a recovery of gold to concentrate of 97.0% during the month. As shown in the table below, a new record of gold production was achieved in the last month.
| January | February | March | April | May | June | July | ||
| Mineral Processed | Dry Tonnes | 14,349 | 8,936 | 12,081 | 13,329 | 11,077 | 14,262 | 17,216 |
| Feed Grade | g/t Au | 2.60 | 2.27 | 3.02 | 3.25 | 4.19 | 4.20 | 4.27 |
| Gold Produced | Tr. Oz. | 1,155 | 625 | 1,133 | 1,349 | 1,446 | 1,857 | 2,292 |
| Total Recovery | % | 96.4% | 95.9% | 96.5% | 96.9% | 97.0% | 96.5% | 97.0% |
| Worked days | Days | 31 | 29 | 31 | 30 | 31 | 30 | 31 |
| Average Processed | Dry Tonnes/Day | 463 | 308 | 390 | 444 | 357 | 475 | 555 |
Below are other important announcements associated with the current status of the operation:
- Plant expansion 1,200 TPD: Issues with the electrical connection have delayed the start of the Pre-commissioning and commissioning of the expanded plant, however the start of the second mill is confirmed for the first half of August.
- Third Party Mineralized Material: This business line continues to contribute significantly to monthly production. An average of 450 ounces per month come from third parties, representing 23% of production during the last 3 months.
- New high-grade vein discovery: A new narrow high-grade vein, named “Los Chachos” has been found. Channel sampling across the width of the vein was undertaken every two meters over strike lengths of 29 and 20 meters. Results of the assays are as follows:
- An average of 80.2 g/t Au over 0.45 meters true width along the 29 meter strike length
- An average of 90.3 g /t Au over 0.29 meters true width along the 20 meter strike length
Two drifts are being developed along the vein on the 1194 Sub-level of the Guaico Mine (Figure 1).
- Exploration Program: A new surface and underground exploration program is being designed with the aim of always maintaining a defined production horizon of 2 or 3 years. These programs will focus mainly on the structural system called “El Papi”, close to the Guaico Mine and on the adjacent recently acquired Cantayus and La Palma properties. The scope and the results of this exploration program will be provided in future press releases.
Figure 2. Targets for future exploration programs at El Papi, Cantayus and La Palma.
“It is gratifying to see how gold production continues to show solid growth month by month. This is a new production record for our Company. The cash generated will allow us to start repaying debt and eventually to pay dividends,” stated Mr. Gonzalo de Losada, president and CEO of Antioquia Gold.
Readers should be cautioned that the Corporation’s decision to move forward with the construction and production of the Cisneros Mine is not based on the results of any pre-feasibility study or feasibility study of mineral resources demonstrating economic or technical viability. Readers are referred to the Cisneros Report for details on independently verified mineral resources on the Cisneros Project. Since 2013, the Corporation has undertaken exploration and development activities; and after taking into consideration various factors, including but not limited to: the exploration and development results to date, technical information developed internally, the availability of funding, the low starting costs as estimated internally by the Corporation’s management, the Corporation is of the view that the establishment of mineral reserves, the commissioning of a pre-feasibility study or feasibility study at this stage is not necessary, and that the most responsible utilization of the Corporation’s resources is to proceed with the development and construction of the mine. Readers are cautioned that due to the lack of pre-feasibility study or feasibility study, there is increased uncertainty and higher risk of economic and technical failure associated with the Corporation’s decision. In particular, there is additional risk that mineral grades will be lower than expected, the risk that construction or ongoing mining operations will be more difficult or more expensive than management expected. Production and economic variables may vary considerably, due to the absence of a detailed economic and technical analysis in accordance with NI 43-101. Project failure may materially adversely impact the Corporation’s future profitability, its ability to repay existing loans, and its overall ability to continue as a going concern.
Qualified Persons
Roger Moss, Ph.D., P.Geo., Consultant to Antioquia Gold, is the qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical information provided in this news release.