Gran Colombia Gold announces first quarter 2013 results, including savings from ongoing cost reduction initiatives, and releases high grade drill results from its Segovia Project

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, May 14, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM)\n announced today the release of its unaudited condensed consolidated\n financial statements and accompanying management's discussion and\n analysis (MD&A) for the first quarter of 2013 and the results of its\n ongoing exploration at its Segovia Project. All financial figures\n contained herein are expressed in U.S. dollars unless otherwise noted.\n\n\nFirst Quarter 2013 Highlights\n\n\n\nTotal gold production of 24,350 ounces for the first quarter of 2013, a\n 10 percent increase over the fourth quarter of 2012, driven by a 13\n percent increase at the Segovia Operations. Mill operations at the\n Maria Dama plant at the Segovia Operations have stabilized in 2013 with\n the mill averaging more than 1,000 tpd since the beginning of March.\n The company remains on track to produce a total of 110,000 ounces of\n gold in 2013.\n\n\nRevenue of $37.6 million in the first quarter of 2013 reflected the sale\n of 22,289 ounces of gold at an average realized price of $1,639 per\n ounce and 35,069 ounces of silver at an average realized price of $30\n per ounce.\n\n\nIn January 2013, management embarked on a comprehensive review of its\n operations to identify and implement $12 million in annualized cost\n savings. This program resulted in $850,000 per month of savings\n starting in February 2013, with approximately $700,000 directly related\n to operating costs at the Segovia Operations and the balance in general\n and administrative (G&A) spending. In May 2013, the company is\n implementing further actions that will reduce operating costs by an\n additional $500,000 per month at Segovia, bringing the annualized cost\n savings starting in June 2013 to $16.2 million, a 35 percent\n improvement compared to the company's previous target.\n\n\nTotal cash costs averaged $1,281 per ounce of gold in the first quarter\n of 2013, a significant improvement from $1,534 per ounce in the fourth\n quarter of 2012. As a result of the realized cost reductions and the\n improvement in gold production, Segovia's cash cost decreased to an\n average of $1,315 per ounce for the first quarter of 2013 and to $1,164\n per ounce in the month of March.\n\n\nAll-in sustaining costs were $1,545 per ounce in the first quarter of\n 2013 and are expected to trend down over the balance...

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