Drill-hole TRC-11, designed to validate the geological model for Trap, intercepted significant mineralization. The results include 174.45 meters at 1.19 g/t gold equivalent (AuEq), with a notable section of 40.85 meters at 3.76 g/t AuEq.

Two additional holes, TRC-12 and TRC-14, were drilled from a new pad (TPad-4) and intercepted the Mineralized Deformation Zone (MDZ) further along strike. TRC-14 also identified a new zone of mineralization near the collar of the pad. The MDZ corridor, mapped for approximately 1.4 kilometers, remains open for further expansion.

TRC-8 intersected mineralization in the MDZ before being cut short by a post-mineral intrusive dyke, returning 51.05 meters at 1.41 g/t AuEq. TRC-9 and TRC-10, drilled outside the MDZ, showed lower grade mineralization.

The company plans to continue drilling along the MDZ corridor and has mobilized a second rig to Trap. Reconnaissance exploration drilling will also commence shortly at the X target and the southern part of the Plutus target.

Drill Results Summary:

• TRC-11: 174.45 meters @ 1.19 g/t AuEq, including 40.85 meters @ 3.76 g/t AuEq
• TRC-8: 51.05 meters @ 1.41 g/t AuEq, including 11.90 meters @ 2.49 g/t AuEq
• TRC-9: Multiple intercepts, including 3.25 meters @ 4.83 g/t AuEq
• TRC-10: 89.85 meters @ 0.73 g/t AuEq, including 13.10 meters @ 1.98 g/t AuEq

Assay results from outcrops at the southeastern end of the MDZ indicate potential for further expansion. The company will continue to update as more results become available.

“I would like to commend our team for their tenacity at Trap, which I believe will now rapidly evolve through drilling into a multi-million-ounce precious metal system. Additionally, the discovery at Trap should nicely compliment our flagship Apollo system and in time, I am confident the two systems will lead to a robust mineral resource inventory capable of producing at a large-scale production profile for many years in the future,” said Ari Sussman, Executive Chairman.

“With five drill rigs turning as part of our 40,000-meter program and a backlog of core in the lab, we are excited about the second half of the year where aggressive drilling with four rigs will take place at the Apollo and Trap systems. Additionally, reconnaissance exploration drilling will commence shortly with one rig at the X target, where we will drill test a look-a-like brecciated porphyry system to Apollo and another rig (six in total at the Guayabales project) at the southern part of the Plutus target, where we will test for a potential copper-gold porphyry system.”

High-grade mineralization was also encountered in a new zone in the footwall of the MDZ in hole MT-IU-050 and is anticipated to be accretive to overall global resource growth as this mineralization lies either outside the boundary of the current mineral resource estimate block model for the MZ or in areas that were previously estimated to be below the cut-off grade due to lack of information.

Serafino Iacono, Executive Chairman of Gran Colombia, commented, “Our 2019 Phase 2 drilling campaign has generated additional exciting results which have further increased our confidence in the geological model and continues to demonstrate an improvement of grades in the MZ below the 900 meter level versus the mineral resource block model associated with the PEA. In addition, the discovery of a potential new high-grade zone opens a new scenario for potential resource growth. All in all, we remain very encouraged by the progress we are making in the evaluation of the underground mining expansion opportunity at our Marmato Project.“

Longitudinal section of MZ Zone

The 2019 drilling campaign started in March and was completed in late November with three contractor diamond drill rigs, one of which was added to the Phase 2 drilling campaign in early September, operating from four purpose-built underground drill stations. The two drilling campaigns comprise a total of 30 drill holes totaling approximately 16,299 meters, of which 4,600 meters were completed in seven drill holes in Phase 1 and 11,699 meters were completed in 23 drill holes in Phase 2.

The company plans to drill up to 15,000 meters in 2020 commencing toward the end of February. Approximately 10,000 meters of infill drilling is designed to convert Inferred mineral resources to the Indicated category and to add additional mineral resources by stepping out along the southeast extension of the MZ. Another approximately 5,000 meters of exploration drilling will focus on broad mineralized zone targets outside the MDZ.

Cross section of drill hole MT-IU-050 (Final)

Intersections with high gold grades generated from the last eight drill holes of Phase 2 drilling reported herein (MT-IU-046 to MT-IU-052 and MT-IU-054), include:

• Drill hole MT-IU-050 which intersected 54.42 m at 3.65 g/t Au and 4.3 g/t Ag from 246.75 m to 301.17 m, 51.80 m at 3.0 g/t Au and 6.0 g/t Ag from 379.3 m to 431.10 m, and 41.35 m at 4.14 g/t Au and 4.34 g/t Ag from 449.0 m to 490.35m; all these intersections are associated with the MZ.
• Drill hole MT-IU-050 also intersected 76.75 m at 3.12 g/t Au and 1.9 g/t Ag from 538.25 m to 615.00 m, which is the intersection associated with the NZ.
• Drill hole MT-IU-051 which intersected 75.83 m at 4.03 g/t Au and 5.5 g/t Ag from 248.00 m to 323.83 m.
• Drill hole MT-IU-054 which intersected 66.35 m at 3.05 g/t Au and 3.9 g/t Ag from 358.00 m to 424.35 m.

The style of mineralization for the intersection associated with the NZ is the same as the MZ and is characterized by very narrow veinlets of quartz-pyrrhotite-bismuth tellurides-free gold with minor amounts of pyrite and chalcopyrite rimmed by a narrow halo of sodic-calcic alteration.

Key Highlights and Intercepts from Phase 2 drilling

• The high-grade mineralization intercepted in drill hole MT-IU-050, outside the boundary of the current mineral resource estimate block model for the MZ, may represent a new zone (NZ) or a branch off the MZ. Further drilling in this area is required and is planned as part of the 2020 drilling program;
• The drill intercepts (MT-IU-050, MT-IU-051 and MT-IU-054) from Phase 2 drilling continue to demonstrate a further improvement of grades in the MZ below the 900-meter level versus the mineral resource block model associated with the PEA;
• The results from Phase 2 infill drilling continue to impress both in terms of grades and widths and will undoubtedly lead to an important resource growth coupled with a greater flexibility for mining;
• Most of the drill holes of Phase 2 reported herein end within the low-grade shell with the result that the MDZ is open on the east side. This is due to the location of underground drill stations above and close to the steeply plunging low grade shell. The holes achieved their objective of fully cutting the high grade MZ.

Images courtesy of Gran Colombia Gold