Segovia, an old mining district with high exploration potential Colombia Gold Symposium Medellin, November 15, 2016

Transcription

1 Segovia, an old mining district with high exploration potential Colombia Gold Symposium Medellin, November 15, 2016 Alessandro Cecchi Vice President, Exploration 1

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3 Canadian listed (TSX: GCM) producer with offices in Toronto/Medellin. Currently the largest underground gold and silver producer in Colombia. Leading Colombian high grade underground gold producer. Very attractive entry point for common shares; undervalued versus peers. Gold production increased 18.5% to 117,000 ounces in projecting 144, ,000 ozs in ,000 ozs through October. AISC (full year average) below US$900/ oz for projecting < US$850/oz for 2016.$832/oz for 9 months YTD Upside in resource expansion and exploration assets. Advancing a project to expand and mechanize its high grade gold and silver mines at its Segovia 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 excess of 14M ozs of gold and almost 90M ozs of silver. Deep mineralization holds potential to add resources. The Zancudo Project, a former high grade producer, provides additional exploration upside. Successfully completed senior debt restructuring in January 2016; launched NCIBs in July 2016 to repurchase and cancel senior debt. 3

4 PROPERTY LOCATION Antioquia Dept. Segovia Remedios Mining District Mines currently operated by GCM: Providencia El Silencio Sandra K 4

5 MINING RIGHTS LOCATION The Mining Carla Project Title RPP comprises 140 straddles of 16 mining the historical titles covering Segovia about Remedios 6,000 Ha. Mining Included District. in the The project title covers is Title a 7367 total on area which of 2,871 the Carla Ha that was granted Mine is to located. FGM in perpetuity. 5

6 HISTORICAL PRODUCTION MINING FROM LATE XVI CENTURY GOLD PRODUCTION BY FGM Year Tonnes Gold Ounces Au grade (g/t) Silver Ounces , ,869,991 1,810, (Q1) 8,555,759 2,675, ,936,530 10,425,750 4,628,140 2,936,530 Source: FGM. Data is recovered ounces. GOLD PRODUCTION BY GCM Year Tonnes Gold Ounces Au grade (g/t) Silver Ounces ,214 50, ,527 68, ,420 79, ,414 80, ,738 74, ,049 92, ,295 91, ,583, , ,009,407 5,165, SEGOVIA OPERATIONS A HIGH GRADE WORLD CLASS DEPOSIT 1 First nine months 6

7 REGIONAL GEOLOGY The Segovia Remedios Mining District is hosted entirely by the Segovia Batholith of Upper Jurassic age of diorite to granodiorite composition. 10 km 7

8 VEIN SYSTEM POTENTIAL 3 main mines 27 main known veins 8

9 STRUCTURAL CONTROL Gold mineralization The syn mineralization veins occurs in narrow fit in a single deformation quartz sulphide event of N S to NNE SSW veins hosted by a compression that generates potassic, sericite NNW dextral transpressional and intermediate shearing argillic altered wall rock. 9

10 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 from the 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 verify historical underground data and increase the size of higher confidence quality control checked samples in the exploration database. Exploration diamond drilling to explore new targets and test extensions of known veins. 10

11 DRILLING PROGRAMS DRILLING PROGRAMS LAVS Sandra K Providencia Historical Drilling by FGM Total Number (m) holes Subtotal 60, Drilling by GCM Total (m) Number holes Providencia Mine 20, Sandra K/Chumeca Mine 8, Las Aves Vein System 27, Subtotal 56, Grand total 117, Carla 10,

12 MINERAL RESOURCE ESTIMATE Statement for the Segovia and Carla Projects August 1 st, 2013 by SRK Consulting (UK) Limited GOLD M&I Inferred at 3 g/t Au cut off / using a gold price of US$ 1,400 oz. Tonnes Grade Ounces Tonnes Grade Ounces (kt) (g/t) (koz) (kt) (g/t) (koz) LONG TERM RESOURCES (LTR) Providencia Sandra K Carla Las Verticales El Silencio Total Long Term Mineral Resource , PILLARS Providencia Pillars Sandra K Pillars El Silencio Pillars 1, Total Pillars Mineral Resources , 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. 12

13 MINERAL RESOURCE ESTIMATE Very close to the average grade of the ore mined by GCM from 2010 to

14 EXPLORATION POTENTIAL Mines in operation LAVS Providencia mine 14

15 EXPLORATION POTENTIAL Las Aves Vein System La Gina La Vega L4 Grades from the small mining activity corroborates the block model 15

16 EXPLORATION POTENTIAL Mines in operation El Silencio mine Fault K 16

17 EXPLORATION POTENTIAL El Silencio north fault block 17

18 EXPLORATION POTENTIAL Mines in operation Sandra K mine step out drilling infill drilling 18

19 THANKS 19