TORONTO, Jan. 9, 2012 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) is pleased to announce the discovery of a deep mineralization trend below the current, preliminary pit outline at its Marmato gold project in Colombia, further highlighting the geological upside of this project. Highlights from an additional 82 drill holes totalling 24,697 metres from the diamond drilling program include hole MT-1455A which returned 1.4 grams per tonne (g/t) gold and 6.4 g/t silver over 357 metres and hole MT-1445, which returned 1.4 g/t gold and 2.3 g/t silver over 239 metres.

The current drilling has also produced a number of deep gold intersections, which include those highlighted above, and which extend mineralization trends to approximately 300 metres below the limit of the current preliminary pit outline. The deep mineralization is still open at depth and in all directions except to the southwest. These deep intersections show that mineralization at the Marmato Project extends for a vertical interval of more than 1,040 metres to the 560 metre level, and is open at depth.

Serafino Iacono, Executive Co-Chairman of the Company, commented: "While it is still very early days in terms of our understanding of this new deep mineralization we are very excited as a result of the significant extension to the vertical range of the system at the Marmato Project as well as the recognition of a new style of gold occurrence at the Marmato Project. This new zone remains wide open and we believe it offers the potential for another significant phase of resource growth at our flagship project."

Significant results (greater than 20 gram-metres) are summarized below:

The main focus of the drilling program has been to upgrade the confidence of the mineral resource estimate.

Mineralization in the deep gold intersections is related to parallel veinlets of quartz-pyrrhotite-chalcopyrite. Gold appears to be related to the presence of chalcopyrite, and copper assays are awaited for these holes. The veinlets have a narrow halo of intermediate argillic alteration.  The style of alteration and mineralization is similar to that seen throughout the Marmato deposit and the grades of gold are higher (and copper is also expected to be higher).  The structural style is different from the rest of the Marmato deposit, forming a deep, high grade core, with no major veins.  Further work is required by the Company to investigate the depth and strike continuity of this deep mineralization.

Since January, 2010, the total number of metres drilled to date is 116,677 in 334 holes. Including all previous drilling the total is 197,571 metres in 713 holes. The surface drilling program was completed in December, 2011 and samples from the final holes are at the laboratory and awaiting results. The final 7 underground holes are planned to be completed this month which will conclude the resource drilling campaign for the upcoming Feasibility Study.  All of the results to date, together with a map showing the locations of the drill holes, are available on the Company's website at www.grancolombiagold.com. Once all of the drilling results are received, an updated resource and reserve estimate will be made.

The Marmato Project is the subject of a Technical Report prepared by SRK Consulting (UK) Ltd. announced on September 4, 2011 showing a measured and indicated mineral resource of approximately 306.7 million tonnes at an average gold grade of 1.0 g/t containing 10.0 million ounces of gold plus 68.3 million tonnes grading 1.1 g/t containing approximately 2.4 million ounces of gold classified as inferred resources at a cut-off grade of 0.3 g/t.  Measured and indicated silver resources amounted to 63.9 million ounces grading 6.5 g/t plus a further 11.2 million ounces classified as inferred resources grading 5.1 g/t.  The complete Technical Report is available at www.sedar.com as well as the Company's website.

SRK also completed a Preliminary Economic Assessment in May 2011, indicating that the preferred mining method is open pit with contractor mining.  Based on processing 283 million tonnes of ore at a rate of 40,000 tonnes per day, production would average 340,000 ounces of gold and 1.3 million ounces of silver per year over a 21-year mine life.  The cash operating cost is expected to be $525 per ounce of gold, net of silver credits. Assuming a life of mine capital cost of $550 million, total cost per ounce is estimated to be $643.  Assuming gold and silver prices of $1,200 and $16 per ounce respectively, this method resulted in a net present value of $1.1 billion assuming a discount rate of 5%.  These estimates assume an average gold grade of 0.9 g/t, a stripping ratio of 3.3:1 and a metallurgical recovery of 88% for gold and 60% for silver.  Mineral resources that are not mineral reserves do not have demonstrated economic viability.  The complete Preliminary Economic Assessment is available at www.sedar.com as well as the Company's website.

Hatch has been retained to prepare a Pre-feasibility Study based on the September 4, 2011 resource estimate, the results of which are expected at the end of the first quarter of 2012.

Segovia Operations

The Company will announce results of the 2011 drilling campaign at the Segovia Operation within a couple of weeks. These results will be the subject of a National Instrument 43-101 resource estimate due for release next month.

Qualified Person

Stewart D. Redwood, Senior Consulting Geologist to the Company, is a qualified person as defined by National Instrument 43-101 - Standards of Disclosure or Mineral Projects and prepared or reviewed the preparation of the scientific and technical information in this press release in respect of the drilling results from the Marmato Project.  Dr. Redwood verified the data disclosed in this news release, including the sampling, analytical and test data underlying the information contained in this news release.  Verification included a review of the quality assurance and quality control samples, and review of the applicable assay databases and assay certificates.

Quality Assurance and Quality Control

In the case of the drilling results referred to herein, the samples were prepared by Acme Analytical Laboratories Ltd (ISO 9001:2008) at their sample preparation facility in Medellin, Colombia, and were assayed at their laboratory in Santiago, Chile.  Gold was assayed by fire assay with atomic absorption spectrophotometer ("AAS") finish.  Samples over 10 g/t gold were assayed by fire assay with gravimetric finish.  Silver was assayed by aqua regia digestion and AAS finish.  Silver samples above 100 g/t were assayed by fire assay with gravimetric finish. Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.

Conference Call Details

A conference call will be held on Wednesday, January 11, 2012, at 11:00 a.m. (Eastern Time) to discuss the progress at the Marmato Property.  The call-in details are as follows:

A playback of this conference call will be available by dialing 416-849-0833 or (855) 859-2056 with the above conference ID number until January 25, 2012.

About Gran Colombia Gold Corp.

Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia.  Gran Colombia is currently the largest underground gold and silver producer in Colombia with six underground mines in operation.  In addition, Gran Colombia is also developing a large-scale, open-pit gold and silver mine at Marmato.  The Company also has a highly-prospective land position in Colombia as well as an advanced stage property in Venezuela and earlier stage properties in Mali.

Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.

Cautionary Statement on Forward-Looking Information:

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.