News Release Not very good news Marmato DEAD
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: GRAN COLOMBIA RESOURCES INC.
TSE SYMBOL: GRM
AUGUST 29, 1997
Marmato Scoping Study Results
TORONTO, ONTARIO--Gran Colombia Resources Inc. (the "Company") has
received the scoping study and resource evaluation report on the
Marmato gold project which was performed by Denver-based Geosystem
International ("Geosystem"). This report was based on the
exploration carried out over two years on the Marmato Au-Ag
deposit, which included 75 diamond drill holes (36 surface, 39
underground).
The conclusion of the scoping study is that the drilling to date
at Marmato has not identified sufficient resources capable of
being mined economically, at present gold prices, by bulk tonnage
- open pit methods.
Geosystem reviewed all available data in the project and defined
computerized lithologic and structural models. Then, based on a
computerized block model which was validated by using graphical
and statistical checks, pit optimization studies were performed
using equivalent grades and assumed operating costs and
recoveries. Finally, a preliminary undiscounted cash flow
analysis was performed, to study pit recoverable resource
sensitivities to gold price and operating costs, particularly
milling.
After a thorough evaluation of the study the Company's technical
group reported to the Board of Directors that it concurred with
the findings of the study and recommended that operations at
Marmato be suspended.
When the company acquired the Marmato property, interest was
mainly in its attractive geology and its location in the most
famous historical gold producing district in Colombia.
Historically, mining had been carried out on a small scale and had
concentrated solely on the high grade veins. The Company,
however, felt that in order to support a lager scale mining
operation the potential of the Marmato project, given its nature,
topography and other logistic issues, resided in the possible
identification of a large disseminated deposit, minable in
bulk-tonnage by open pit methods. Only a deposit of this nature
would meet the parameters of scale and related production costs
required to offset the general low grade and support the high
capital investment likely to be needed to operate in the area.
Over the course of its work at Marmato the Company has acquired
other properties in Colombia but Marmato has been its prime area.
Field work on the other properties thus far has not identified any
interesting target worth pursuing with further exploration.
However, the Company is well funded with approximately U.S.$ 8.5
million in working capital and has been actively seeking viable
advanced projects in Central-South America and elsewhere. In
addition, consideration is being given to other opportunities
available due to current conditions in the junior mining sector.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Gran Colombia Resources Inc.
Mauro Coppola
(416) 955-4554
(416) 955-1206 (FAX)
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY
AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED
HEREIN.
INDUSTRY: PCS |
