Off The Wire
Gran Colombia 1Q output impacted by restrictions; limited operations continue
(Kitco News) - Gran Colombia Gold Corp. (TSX: GCM) said Tuesday that first-quarter gold production was lower than initially expected due to government rules to combat the COVID-19 pandemic, although output is continuing at a reduced rate.
The company listed output of 19,072 ounces of gold in March, which brought the first-quarter total to 56,247 ounces, down from 60,601 in the first quarter of 2019.
“While we are pleased with our first quarter 2020 production, it came in slightly lower than expected due to the impact of the national quarantine in Colombia on Segovia’s production in the final week of March,” said Lombardo Paredes, chief executive officer.
“We continue to operate at both Segovia and Marmato in April but at reduced production rates compared to normal as the national quarantine has limited the number of available workers in both operations. In the second half of April, we expect to see an increase in the number of workers at both operations compared to the first half of the month, but we are continuing to proceed with caution, ensuring all safety measures remain in effect and limiting discretionary capital and operating expenditures.”
Segovia’s production for the first quarter was 50,346 ounces, compared with 54,386 ounces in the first quarter of 2019.
As a result of the continuing restrictions on workers, the company said it anticipates that Segovia gold production during April will range between 60% and 75% of normal. The company also said it will undertake important maintenance and revamp its infrastructure, including the crushing section of the Maria Dama plant, a primary apique at El Silencio and installing new brakes on the hoisting equipment at Providencia.