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Antioquia Gold Inc
Symbol AGD
Shares Issued 949,398,138
Close 2019-08-14 C$ 0.025
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Antioquia's Cisneros produces 1,523 oz of Au in July

2019-08-15 15:03 ET - News Release

An anonymous director reports


Antioquia Gold Inc. has provided an update of production at its Cisneros mining operation and on the actions under way to improve the results obtained to date.

During the last seven months of operation, the company continues to gradually increase the treatment rate in its plant and has already exceeded its design capacity of 500 tonnes per day (TPD). A treatment rate of 600 TPD is expected to be achieved with the current equipment. Some aspects to highlight from the first seven months of operation are:

  • Metallurgical recovery remains close to 94 per cent, 4 per cent more than expected in designs.
  • The treatment rate in the last month reached 562 TPD.
  • The average processing grade has been 2.69 grams per tonne (g/t) gold (Au) with monthly peaks of 2.90 g/t Au and minimum of 2.20 g/t Au. These variations are a function of the percentage of narrow veins contributing to the total feed.

                                            January  February     March     April       May     June      July    Total

Days worked                                      11        28        31        30        31       30        31      192
Mineralized material processed (tonnes)       1,655     9,666    11,890    15,027    16,028   16,474    17,437   88,177
Average material processed per day (TPD)        150       345       384       501       517      549       562      459
Feed grade (g/t Au)                            2.30      2.20      2.90      2.80      2.74     2.54      2.88     2.69
Total recovery (%)                             91.6      89.2      94.2      95.6      96.0     92.7      94.3     94.0
Gold produced (ounces)                          112       610     1,044     1,293     1,355    1,247     1,523    7,184

In order to improve the operating results achieved so far, the company is working on six strategic fronts as follows:

  1. Plant expansion to 1,200 TPD: This decision was announced in the press release of May 3 and proceeds on schedule. It is expected to be completed in the fourth quarter of 2019.
  2. Change of mining contractor: The company decided to hire a new contractor for the integral operation of the Guaico and Guayabito mines starting in November, 2019. This change will bring an improvement in the operating costs of the preparation, development and production work on all fronts.
  3. Alternative mining pilot tests in narrow veins: The company is currently carrying out pilot testing of mining methods for narrow veins, using the sublevel stoping and conventional mining cut and fill methods, in order to determine the optimal mining method for these types of structures. Productivity, cost and safety parameters are being evaluated. It is expected to have results of these tests for possible implementation in the third quarter of the year.
  4. Installation of sorting process: It was decided to resume assembly of the sensor-based sorting process with the Steinert equipment acquired months ago. The objective is to improve the grade treated from the Nus shear zone.
  5. Energy purchase contract: The energy consumption levels that the operation presents today allow the company to enter the unregulated energy market. In this way, a supply contract will be signed with a generator of green energy and the company will get a 20-per-cent savings on the cost per kilowatt that is being paid.
  6. Purchase of third party material: After a detailed evaluation of this business model in Colombia and identifying a list of potential suppliers that are formalized and fully complying with Colombian regulations, the company has advanced negotiations in order to process its mineralized material at the company's plant.

The implementation of these lines of action seek, in the medium term, to improve the profitability of the company and increase its production levels in a sustainable manner over time.

Qualified persons

Roger Moss, doctor of philosophy, professional geoscientist, 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.

We seek Safe Harbor.

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