Segovia, an old mining district with high exploration potential - - PowerPoint PPT Presentation

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Alessandro Cecchi Vice President, Exploration

Segovia, an old mining district with high exploration potential

Colombia Gold Symposium

Medellin, November 15, 2016

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Canadian‐listed (TSX: GCM) producer with offices in Toronto/Medellin. Currently the largest underground gold and silver producer in Colombia. 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

• f 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. Gold production increased 18.5% to 117,000 ounces in 2015.

• projecting 144,000 ‐ 150,000 ozs in 2016…122,000 ozs through October.

AISC (full year average) below US$900/ oz for 2015.

• projecting < US$850/oz for 2016….$832/oz for 9 months YTD 2016.

Upside in resource expansion and exploration assets. Leading Colombian high‐grade underground gold producer.

• Very attractive entry point for common shares; undervalued versus peers.

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PROPERTY LOCATION

Antioquia Dept.

Segovia – Remedios Mining District Mines currently operated by GCM:

• Providencia
• El Silencio
• Sandra K

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MINING RIGHTS LOCATION

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

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HISTORICAL PRODUCTION

GOLD PRODUCTION BY FGM Year Tonnes Gold Ounces Au grade (g/t) Silver Ounces 1869 ‐1898 141,633 1899 ‐1954 1,869,991 1,810,725 1957 ‐2010 (Q1) 8,555,759 2,675,782 9.74 2,936,530 10,425,750 4,628,140 2,936,530 Source: FGM. Data is recovered ounces.

MINING FROM LATE XVI CENTURY

GOLD PRODUCTION BY GCM Year Tonnes Gold Ounces Au grade (g/t) Silver Ounces 2010 149,214 50,313 11.38 2011 188,527 68,704 12.56 2012 260,420 79,178 11.02 2013 327,414 80,226 8.59 2014 237,738 74,507 10.64 2015 211,049 92,894 14.32 20161 209,295 91,435 13.74 1,583,657 537,257 11.48 12,009,407 5,165,397 9.97

SEGOVIA OPERATIONS A HIGH‐GRADE WORLD CLASS DEPOSIT

1 First nine months

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REGIONAL GEOLOGY

10 km

The Segovia – Remedios Mining District is hosted entirely by the Segovia Batholith of Upper Jurassic age of diorite to granodiorite composition.

VEIN SYSTEM POTENTIAL

3 main mines 27 main known veins

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The syn‐mineralization veins fit in a single deformation event of N‐S to NNE‐SSW compression that generates NNW dextral transpressional shearing

STRUCTURAL CONTROL

Gold mineralization

• ccurs in narrow

quartz‐sulphide veins hosted by a potassic, sericite and intermediate argillic altered wall‐rock.

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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.

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DRILLING PROGRAMS

Historical Drilling by FGM

Total (m) Number holes

Subtotal 60,452 574

2010‐2013 Drilling by GCM

Total (m) Number holes Providencia Mine

20,927 50

Sandra K/Chumeca Mine

8,992 40

Las Aves Vein System

27,032 89 Subtotal 56,951 179

Grand total 117,403 753 Carla

10,084 54

DRILLING PROGRAMS

Providencia Sandra K LAVS

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Statement for the Segovia and Carla Projects

August 1st, 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 (kt) Grade (g/t) Ounces (koz) Tonnes (kt) Grade (g/t) Ounces (koz) LONG TERM RESOURCES (LTR) Providencia 447 20.2 291 88 20.1 57 Sandra K 263 10.9 92 422 8.2 111 Carla 154 9.7 48 178 9.3 53 Las Verticales 771 7.1 176 El Silencio 681 11.6 254 Total Long Term Mineral Resource 864 15.5 431 2,140 9.5 651 PILLARS Providencia Pillars 616 19.2 379 Sandra K Pillars 77 12.3 31 14 14.4 6 El Silencio Pillars 1,309 9.7 406 Total Pillars Mineral Resources 77 12.3 31 1,939 12.7 791

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.

MINERAL RESOURCE ESTIMATE

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MINERAL RESOURCE ESTIMATE

Very close to the average grade of the ore mined by GCM from 2010 to 2015

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EXPLORATION POTENTIAL

Mines in operation

Providencia mine LAVS

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EXPLORATION POTENTIAL

Las Aves Vein System

La Gina La Vega

L4

Grades from the small mining activity corroborates the block model

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EXPLORATION POTENTIAL

Mines in operation

El Silencio mine

Fault K

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EXPLORATION POTENTIAL

El Silencio north fault block

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EXPLORATION POTENTIAL

Mines in operation

Sandra K mine

infill drilling step‐out drilling

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THANKS