TORONTO, Jan. 24, 2012 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) is pleased to announce that it has completed a diamond drilling program consisting of 86 diamond holes totaling 32,470 metres as of December 5, 2011 during the first phase of exploration drilling at the Segovia Project. The first phase drilling campaign focused on defining new resources by following the downward-plunge extension of the ore shoot in the Providencia Mine, and tested a new vertical vein system which had never been drilled before, called the Las Aves Vein System, on the western side of the property. Bonanza gold grades were intersected on both vein systems with maximum grades of 161 g/t Au and greater than 100 grams per tonne ("g/t") Ag over 0.4 metres on the Providencia Vein, and 249 g/t Au with 162 g/t Ag over 0.4 metres on the Silencio Sur Vein, part of the Las Aves vein system.

Maria Consuelo Araujo, Chief Executive Officer of the Company, commented:  "The Las Aves Vein is a major new vein system that has never been drilled before. Although it is still very early in terms of our understanding of this vein system, we are very encouraged by these initial results, which confirm the presence of high grade mineralization in the system, and we expect this to add significant new resources to the Company."

Some of the vein intersections from the Providencia Mine and Las Aves Vein System drilling are tabulated as follows:

Note: Sample grades over 5.0 g/t Au reported. Grades are for quartz vein intersections and are mostly single samples, or in a few cases length-weighted composites. The length is the sample length and is not necessarily the true width of the vein. All gold and silver grades are uncut and are not diluted to a minimum mining width. Abbreviations: FW = foot wall vein, HW = hanging wall vein. The results for the holes marked * (ZC0004, ZC0005 and ZC0006) were previously published in a press release dated 6 March 2011.

Drilling results from the Providencia Mine confirm the downward-plunge extension of the high grade ore shoot for a further 200 metres below Level 10, currently the deepest level. This ore shoot remains open and we believe it offers the potential for another significant phase of resource growth at our flagship mine in Segovia. Additional drilling is planned to define a second ore shoot discovered underground at the east end of Level 10 of the Providencia Mine.

Drilling on the Las Aves Vein System has confirmed a strike length of 3,500 metres and drilling was carried out to 400 metres below surface. The vein is still open at depth. Some parallel veins such as Poma Rosa were drilled, and in addition, there are a number of other veins parallel to the Las Aves Vein System which have yet to be drilled. The southern continuation of the Silencio Vein was also drilled near its intersection with Las Aves and returned grades up to 249.1 g/t Au over 0.4 metres.

A new mechanized mining operation, as announced by the Company on December 20, 2011, will extract ore from the Las Aves and Providencia vein systems, starting mid-2013.

The 86 diamond holes totaling 32,470 metres were distributed among the following veins: (i) 10,646.1 metres in 25 holes on the Providencia Vein; (ii) 18,661.8 metres in 49 holes on the Las Aves Vein System; and (iii) 3,162.1 metres in 12 holes on the south extension of the El Silencio Vein.

All of the results to date, together with a map showing the location of the drill holes, are available on the Company's website at www.grancolombiagold.com.

SRK (UK) Ltd. has been contracted to carry out a resource estimate for the Providencia and Las Aves Vein System based on the results of this drill program, which is expected in February, 2012.

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 for 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 Segovia 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 SGS Colombia S.A. at their sample preparation facility in Medellin, Colombia, and were assayed by SGS del Perú S.A.C. at their laboratory in El Callao, Peru.  Both of these companies are part of the SGS group (ISO 9001:2008 certified). Gold was assayed by fire assay with atomic absorption spectrophotometer (AAS) finish.  Samples over 5 g/t gold were re-assayed by fire assay with gravimetric finish.  Silver was analyzed by aqua regia digestion and inductively coupled plasma emission spectrophotometer (ICP-ES) finish while samples over 100 g/t silver were re-assayed by mulitacid digestion and AAS finish.  Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.

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.