Segovia, an old mining with high exploration...
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1 Alessandro Cecchi Vice President, Exploration Segovia, an old mining district with high exploration potential Colombia Gold Symposium Medellin, November 15, 2016
Transcript of Segovia, an old mining with high exploration...
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Alessandro CecchiVice President, Exploration
Segovia, an old mining district with high
exploration potential
Colombia Gold SymposiumMedellin, November 15, 2016
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Canadian‐listed (TSX: GCM) producer with offices in Toronto/Medellin.
Currently the largest underground gold and silver producer in Colombia.
Advancing a project to expand and mechanize its high‐grade gold and silver mines at itsSegovia Operations (~85% of total production).
The Marmato Project, one of the Top‐20 largest undeveloped global gold deposits,provides significant optionality to gold and silver prices with current resources in excessof 14M ozs of gold and almost 90M ozs of silver. Deep mineralization holds potential toadd resources.
The Zancudo Project, a former high grade producer, provides additional explorationupside.
Successfully completed senior debt restructuring in January 2016; launched NCIBs inJuly 2016 to repurchase and cancel senior debt.
Gold production increased 18.5% to 117,000 ounces in 2015.• projecting 144,000 ‐ 150,000 ozs in 2016…122,000 ozs through October.
AISC (full year average) below US$900/ oz for 2015.• projecting < US$850/oz for 2016….$832/oz for 9 months YTD 2016.
Upside in resource expansion and exploration assets.
Leading Colombian high‐grade underground gold producer. • Very attractive entry point for common shares; undervalued versus peers.
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PROPERTY LOCATION
Antioquia Dept.
Segovia – Remedios Mining District
Mines currently operated by GCM:• Providencia• El Silencio• Sandra K
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MINING RIGHTS LOCATION
Mining Title RPP 140 straddles thehistorical Segovia ‐ Remedios Mining District.
The title covers a total area of 2,871 Ha that was granted to FGM in perpetuity.
The Carla Project comprises of 16 mining titles covering about 6,000 Ha. Included in the project is Title 7367 on which the Carla
Mine is located.
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HISTORICAL PRODUCTION
GOLD PRODUCTION BY FGMYear Tonnes Gold Ounces Au grade (g/t) Silver Ounces
1869 ‐1898 141,6331899 ‐1954 1,869,991 1,810,7251957 ‐2010 (Q1) 8,555,759 2,675,782 9.74 2,936,530
10,425,750 4,628,140 2,936,530Source: FGM. Data is recovered ounces.
MINING FROM LATE XVI CENTURY
GOLD PRODUCTION BY GCMYear Tonnes Gold Ounces Au grade (g/t) Silver Ounces2010 149,214 50,313 11.382011 188,527 68,704 12.562012 260,420 79,178 11.022013 327,414 80,226 8.592014 237,738 74,507 10.642015 211,049 92,894 14.3220161 209,295 91,435 13.74
1,583,657 537,257 11.4812,009,407 5,165,397 9.97
SEGOVIA OPERATIONSA HIGH‐GRADE
WORLD CLASS DEPOSIT
1 First nine months
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REGIONAL GEOLOGY
10 km
The Segovia – Remedios Mining District is hosted entirely by the Segovia Batholith of Upper
Jurassic age of diorite to granodiorite composition.
VEIN SYSTEM POTENTIAL
3 main mines27 main known veins
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The syn‐mineralization veins fit in a single deformation event of N‐S to NNE‐SSW
compression that generates NNW dextral transpressional
shearing
STRUCTURAL CONTROL
Gold mineralization occurs in narrow quartz‐sulphide veins hosted by a potassic, sericite and intermediate argillic altered wall‐rock.
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EXPLORATION HISTORY
HISTORICAL EXPLORATION Historical exploration data by FGM is limited to diamond drilling for resource
development at the operating mines, underground mapping and sampling. The historical underground channel sampling database made available to GCM
consists of more than 75,000 samples and is understood to incorporate data fromthe past 30 years.
GCM EXPLORATION (2010 to date) The Company has implemented a surface geological mapping program of the
property at 1:2,000 scale; The Company exploration staff finalized a underground channel sampling
program at Providencia, Sandra K and Carla mines, in an attempt to verifyhistorical underground data and increase the size of higher confidence qualitycontrol checked samples in the exploration database.
Exploration diamond drilling to explore new targets and test extensions of knownveins.
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DRILLING PROGRAMS
Historical Drilling by FGM Total(m)
Number holes
Subtotal 60,452 574
2010‐2013 Drilling by GCMTotal(m)
Number holes
Providencia Mine 20,927 50Sandra K/Chumeca Mine 8,992 40Las Aves Vein System 27,032 89
Subtotal 56,951 179Grand total 117,403 753
Carla 10,084 54
DRILLING PROGRAMS
Providencia
Sandra K
LAVS
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Statement for the Segovia and Carla ProjectsAugust 1st, 2013 by SRK Consulting (UK) Limited
GOLDM&I Inferred
at 3 g/t Au cut‐off / using a gold price of US$ 1,400 oz. Tonnes (kt)
Grade (g/t)
Ounces (koz)
Tonnes (kt)
Grade (g/t)
Ounces (koz)
LONG TERM RESOURCES (LTR)Providencia 447 20.2 291 88 20.1 57Sandra K 263 10.9 92 422 8.2 111Carla 154 9.7 48 178 9.3 53Las Verticales 771 7.1 176El Silencio 681 11.6 254
Total Long Term Mineral Resource 864 15.5 431 2,140 9.5 651PILLARSProvidencia Pillars 616 19.2 379Sandra K Pillars 77 12.3 31 14 14.4 6El Silencio Pillars 1,309 9.7 406
Total Pillars Mineral Resources 77 12.3 31 1,939 12.7 791
Each of the mining areas have been sub‐divided into Pillar areas (“Pillars”), which represent the areas within the current mining development, and Long‐Term Mineral Resources (“LTR”), which lies along strike or down dip of the current mining development.
MINERAL RESOURCE ESTIMATE
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MINERAL RESOURCE ESTIMATE
Very close to the average grade of the ore mined by GCM from 2010 to 2015
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EXPLORATION POTENTIALMines in operation
Providencia mineLAVS
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EXPLORATION POTENTIALLas Aves Vein System
La Gina La Vega
L4
Grades from the small mining activity corroborates the block model
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EXPLORATION POTENTIALMines in operation
El Silencio mineFault K
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EXPLORATION POTENTIALEl Silencio north fault block
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EXPLORATION POTENTIALMines in operation
Sandra K mine
infill drilling
step‐out drilling
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THANKS
