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Antioquia Gold Inc
Symbol AGD
Shares Issued 949,398,138
Close 2020-06-05 C$ 0.025
Recent Sedar Documents

Antioquia produces 1,446 oz of Au in May

2020-06-08 12:53 ET - News Release

Mr. Gonzalo de Losada reports

ANTIOQUIA GOLD CISNEROS OPERATIONS UPDATE

Antioquia Gold Inc. has provided a summary of May, 2020, production results for its Cisneros mining operation, the results of the recent exploration drill program and the progress of other continuing projects.

Production Summary and Operations Update:

During May 1,446 troy ounces of gold were produced at the Cisneros mining operation. An average of 357 tonnes per day were processed with a recovery of gold to concentrate of 97.0% during the month. As shown in the table below, an important increase in gold production and head grade (the highest since the beginning of operations) has been reached. Difficulties with water supply caused a temporary decrease in the daily processing rate during the month.

JanuaryFebruaryMarch April  May 
Mineral Processed  Dry Tonnes  14,349  8,936  12,08113,32911077
   Feed Grade        g/t Au     2.60    2.27   3.02  3.25 4.19 
  Gold Produced     Tr. Oz.     1,155   625   1,133 1,349 1446 
 Total Recovery        %        96.4%  95.9%  96.5% 96.9% 97.0%
   Worked days        Days       31      29     31    30   31  
Average ProcessedDry Tonnes/Day  463    308    390   444   357 

The difficulty with the water supply has been overcome with the recent commissioning of a new water pipeline and the approval by the environmental authority of the required water volume concession permit. This has allowed the process plant to reach its nominal 600 tonne per day processing rate as of now.

Below are other important announcements associated with the current status of the operation:Plant expansion 1,200 TPD: The date for completion of the process plant expansion remains mid-July. As announced in the last press release, all the required permits were approved, and the expansion is fully licensed.Mine preparation status: Some delays, due to the COVID-19 pandemic and related contingencies, have occurred in underground development and stope preparation. However, the hiring of personnel has been restarted and staffing levels are returning to pre-COVID-19 levels. Several narrow vein stoping blocks are ready to be mined with the long hole stoping method. These blocks will contribute to increased feed grade in the coming months.Purchase of third-party mineral: This line of business continues to show important progress and now represents a significant contribution to production.

Exploration Drill Program Results:

Twenty underground diamond drill-holes targeting the Nus shear zone below level 1160 were recently completed. The majority of holes intercepted the shear zone and were drilled at or near perpendicular angles to the structure. Preliminary results of the exploration are presented in the table below.

 DRILLHOLE     FROM   TO  LENGTHAu (g/t)
NUS_UG_19_001184.96198.9714.01   5.11  
NUS_UG_19_002158.9 175.3216.42   3.39  
NUS_UG_19_003159.7 200.9841.28   0.46  
    Including172.36174.26 1.90   4.19  
NUS_UG_19_004 140  145.42 5.42  17.31  
NUS_UG_19_005242.1 259.5817.48   1.27  
NUS_UG_19_00653.58   62   8.42   1.52  
    Including53.58  55.6  2.02   4.32  
NUS_UG_19_007121.28135.2413.96   5.13  
NUS_UG_19_008134.43141.7  7.27   1.23  
NUS_UG_19_009  78    80   2.00   2.90  
NUS_UG_19_010 56.8 61.68  4.88   2.01  
NUS_UG_19_011  No significant results  
NUS_UG_19_012147.82155.42 7.60   4.64  
NUS_UG_19_01357.15 66.05  8.90   1.74  
NUS_UG_19_014181.1 195.4 14.30   2.55  
NUS_UG_19_015  No significant results  
NUS_UG_19_016     Pending Results      
NUS_UG_19_017     Pending Results      
NUS_UG_19_018     Pending Results      
NUS_UG_19_019     Pending Results      
NUS_UG_19_020     Pending Results      

Notes:

1. Reported intersections are downhole widths and do not represent true width. 2. Grades herein are reported as uncapped values.

The above results are encouraging as they show that the shear zone is open at depth and shows better widths and grades than were known at higher levels. Currently, the main access decline is being developed to access these new blocks. It is projected that the mineralization defined in this exploration program will begin to contribute to production in the first half of next year.

New Projects:Tailings Dam: Tailings storage capacity is currently available until April 2021. For this reason, the start of stage three dam construction is being planned, expanding the storage capacity until the end of 2022. The required material for the next dam lift is planned to be generated by waste rock mined during the mine interconnection project described below.Mines Connection Cross-Cut: After a tradeoff evaluation, the company has decided to begin an approximately 2 km access cross-cut that will connect the Guayabito and Guaico mines. In addition to providing the material required for the construction of the stage three tailings dam, this project brings multiple benefits such as improvements in the ventilation circuit, exploration between mines parallel to the Nus shear zone, reduction of transportation costs and less impact on the neighboring communities. Work is scheduled to start in August and will take approximately 15 months to complete.La Palma: In the coming weeks, the work plan for the construction of a new mine in the recently acquired La Palma concession will be presented to the local mining authorities. Once approval is obtained, the company is scheduled to start construction of a new mine in this sector.

"We continue improving the gold production month by month. This, added to the excellent results of the recent exploration programs, allows us to project a solid growth for the company in the short term," stated Mr. Gonzalo de Losada, president and CEO of the company.

Government tax refund certificate

The Colombian government is committed to encourage investments in the mining sector. That is why during 2018 the Company signed an agreement with the government, in which the Company undertook certain investments to obtain future taxes benefits. During 2019 those investments were completed and in May 2020 the Company received a tax refund certificate for an approximate value of USD $1 Million. The certificate was sold in the secondary market and the cash received has been used to meet corporate obligations.

QA/QC

A Quality Control sampling program of reference standards, blanks and duplicates is used to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALS Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold is determined by fire assay with an atomic absorption (AA) finish, over-limit samples are reanalyzed by fire assay with a gravimetric finish.

Qualified Persons

Roger Moss, Ph.D., P.Geo., 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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