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Antioquia Gold Inc
Symbol AGD
Shares Issued 949,398,138
Close 2020-04-13 C$ 0.025
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Antioquia produces 2,913 oz Au at Cisneros in Q1 2020

2020-04-13 16:16 ET - News Release

Mr. Gonzalo de Losada reports


Antioquia Gold Inc. has provided a first quarter 2020 production summary for its Cisneros mining operation. The company has taken actions associated with preventing the spread of the COVID-19 virus.

During the first quarter of the year, a total of 2,913 troy ounces of gold were produced at the Cisneros mining operation. An average of 388 tons per day, with a recovery of gold to concentrate of 96.3 per cent, were processed during the period.

Issues with water supply for mineral processing due to the dry season over the last two months have not allowed the process plant to reach the treatment levels for which the plant was designed. Currently, a new water line is under construction, and the additional water supply is expected four weeks after required permits are obtained.

Recently, a new mining contractor has started work at Antioquia Gold's operations. Initial work is focusing on the preparation of the sublevels required for mining of the narrow veins with the longhole stoping method. In addition, work regarding developing and mining the Nus shear zone will be accelerated.

Antioquia Gold has engaged Tom Kelly as country manager of Colombian operations at Cisneros. Mr. Kelly is a mining engineer from the Colorado School of Mines and has more than 40 years of experience operating mines in several countries (Canada, the United States, Colombia, Peru, Kazakhstan, Indonesia, Zambia, South Africa, Venezuela, Honduras, Nicaragua and Bolivia). His experience includes mining of different metals (gold, silver, copper, lead, zinc and tin) with different mining methods (open pit, underground, narrow veins, wide veins, shear zones and volcanogenic massive sulphides).

Finally, Antioquia Gold has decided, as part of its contingency of dealing with the COVID-19 pandemic, that some projects, such as the plant expansion, be suspended as Antioquia Gold widens its policy of providing a safe and healthy workplace for all of its employees and contractors. The expanded policy is also designed to comply with local and national government guidelines as well as international health organization recommendations.

"We have started the escalation of longhole mining in narrow veins with the new mining contractor. In a few months, the longhole development program will allow us to have a greater contribution of high-grade material from narrow veins in production. This will be reflected in better mill head grade and, as a consequence, better operational and financial results for the company. Additionally, we are working to overcome the water supply problems. Once the new water supply is on line, we look forward to reaching process plant production levels of 600 tpd again. We are also committed to doing our part in overcoming the current pandemic and look forward to completing the plant expansion at the appropriate time," commented Gonzalo de Losada, president and chief executive officer of the company.

Readers should be cautioned that the corporation's decision to move forward with the construction and production of the Cisneros mine is not based on the results of any prefeasibility study or feasibility study of mineral resources demonstrating economic or technical viability. Readers are referred to the Cisneros report for details on independently verified mineral resources on the Cisneros project. Since 2013, the corporation has undertaken exploration and development activities. After taking into consideration various factors, including, but not limited to: the exploration and development results to date; technical information developed internally; the availability of financing; and the low starting costs, as estimated internally by the corporation's management, the corporation is of the view that the establishment of mineral reserves and the commissioning of a prefeasibility study or feasibility study at this stage is not necessary, and that the most responsible utilization of the corporation's resources is to proceed with the development and construction of the mine. Readers are cautioned that due to the lack of a prefeasibility study or feasibility study, there is increased uncertainty and higher risk of economic and technical failure associated with the corporation's decision. In particular, there is additional risk that mineral grades will be lower than expected and construction or continuing mining operations will be more difficult or more expensive than management expected. Production and economic variables may vary considerably due to the absence of a detailed economic and technical analysis in accordance with National Instrument 43-101. Project failure may materially adversely impact the corporation's: future profitability; ability to repay existing loans; and overall ability to continue as a going concern.

Qualified person

Dr. Roger Moss, PhD, PGeo, a consultant to Antioquia Gold, is the qualified person as defined by NI 43-101 and has reviewed and approved the technical information provided in this news release.

We seek Safe Harbor.

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