Mining in Colombia with Social and Environmental Committments

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News

April 13, 2020
Antioquia Gold Cisneros Operations Update

CALGARY, ALBERTA - (April 13, 2020) - Antioquia Gold Inc. ("Antioquia Gold" or the "Corporation") (TSXV: AGD) (OTC Pink: AGDXF) is pleased to provide a first quarter 2020 production summary for its Cisneros mining operation and announces actions taken associated with preventing the spread of the Covid-19 virus.

During the first quarter of the year a total of 2,913 troy ounces of gold were produced at the Cisneros mining operation. An average of 388 tons per day with a recovery of gold to concentrate of 96.3% were processed during the period. 

    January February March
Mineral Processed Dry Tonnes 14,349 8,936 12,081
Feed Grade g/t Au 2.60 2.27 3.02
Gold Produced Oz 1155 625 1133
Total Recovery % 96.4% 95.9% 96.5%
Worked days Days 31 29 31
Average Processed Dry Tonnes/Day 463 308 390

Issues with water supply for mineral processing due to the dry season over the last two months have not allowed the process plant to reach the treatment levels for which the plant was designed. Currently a new water line is under construction and the additional water supply is expected four weeks after required permits are obtained. 

Recently a new mining contractor has started work at Antioquia Gold's operations.  Initial work is focusing on the preparation of the sublevels required for mining of the narrow veins with the long hole stopping method.  In addition, work regarding developing and mining the Nus shear zone will be accelerated.

Antioquia Gold has engaged Mr. Tom Kelly as Country Manager for the Colombian operations at Cisneros.  Mr. Kelly is a Mining Engineer from the Colorado School of Mines and has more than 40 years of experience operating mines in several countries (Canada, U.S.A., Colombia, Peru, Kazakhstan, Indonesia, Zambia, South Africa, Venezuela, Honduras, Nicaragua and Bolivia,).  His experience includes mining of different metals (gold, silver, copper, lead, zinc, tin) with different mining methods (open pit, underground, narrow veins, wide veins, shear zones, VMS, etc.).  

Finally, Antioquia Gold has decided, as part of its contingency of dealing with the COVID-19 pandemic,  that some projects, such as the plant expansion, be suspended as Antioquia Gold widens its policy of providing a safe and healthy workplace for all of its employees and contractors.  The expanded policy is also designed to comply with local and national government guidelines, as well as international health organization recommendations.

"We have started the escalation of long hole mining in narrow veins with the new mining contractor, in a few months the long hole development program will allow us to have a greater contribution of high-grade material from narrow veins in production.  This will be reflected in better mill head grade and, as a consequence, better operational and financial results for the company. Additionally, we are working to overcome the water supply problems. Once the new water supply is on-line we look forward to reaching process plant production levels of 600 tpd again.  We are also committed to doing our part in overcoming the current pandemic and look forward to completing the plant expansion at the appropriate time." Says Mr. Gonzalo de Losada, president and CEO of the company

Readers should be cautioned that the Corporation's decision to move forward with the construction and production of the Cisneros Mine is not based on the results of any pre-feasibility study or feasibility study of mineral resources demonstrating economic or technical viability. Readers are referred to the Cisneros Report for details on independently verified mineral resources on the Cisneros Project. Since 2013, the Corporation has undertaken exploration and development activities; and after taking into consideration various factors, including but not limited to: the exploration and development results to date, technical information developed internally, the availability of funding, the low starting costs as estimated internally by the Corporation's management, the Corporation is of the view that the establishment of mineral reserves, the commissioning of a pre-feasibility study or feasibility study at this stage is not necessary, and that the most responsible utilization of the Corporation's resources is to proceed with the development and construction of the mine. Readers are cautioned that due to the lack of pre-feasibility study or feasibility study, there is increased uncertainty and higher risk of economic and technical failure associated with the Corporation's decision. In particular, there is additional risk that mineral grades will be lower than expected, the risk that construction or ongoing mining operations will be more difficult or more expensive than management expected. Production and economic variables may vary considerably, due to the absence of a detailed economic and technical analysis in accordance with NI 43-101. Project failure may materially adversely impact the Corporation's future profitability, its ability to repay existing loans, and its overall ability to continue as a going concern.

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.


For further information on Antioquia Gold Inc. contact:
Antioquia Gold Inc.
Tel: +(574) 3217073
Email: info@antioquiagold.com
www.antioquiagoldinc.com


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Reader Advisory Forward-Looking Statements:

This press release contains "forward-looking information" within the meaning of Canadian securities legislation. This information and these statements, referred to herein as "forward-looking statements", are made as of the date of this press release and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. 

Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: the completion of the Rights Offering and the use of proceeds of the offering. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives", "schedule" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. 

Forward-looking statements are made based upon certain assumptions by the Corporation and other important factors that, if untrue, could cause the actual results, performances or achievements of Antioquia to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business prospects and strategies and the environment in which Antioquia will operate in the future, including the accuracy of any resource estimations, the price of gold, anticipated costs and Antioquia's ability to achieve its goals, anticipated financial performance, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers its assumptions on such matters to be reasonable based on information currently available to it, they may prove to be incorrect. Additional risks are described in Antioquia's most recently filed Annual Information Form, annual and interim MD&A and other disclosure documents available under the Corporation's profile at: www.sedar.com.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important risk factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. 

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