Maria Consuelo Araujo Chief Executive Officer

THE LEADING COLOMBIAN GOLD PRODUCER
Maria Consuelo Araujo
Chief Executive Officer
SEPTEMBER 2012
TSX: GCM
September 2012
1
DISCLAIMER
FORWARD-LOOKING STATEMENTS
This presentation contains "forward-looking information", which may include, but is not limited to,
statements with respect to the future financial or operating performance of Gran Colombia Gold Corp and its
subsidiaries (“Gran Colombia” or “GCM”) and their respective projects. Often, but not always, forwardlooking 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 presentation based on current expectations and beliefs and Gran Colombia disclaims, 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.
SEPTEMBER 2012
TSX: GCM
2
STRATEGY
• Building the leading Colombia focused gold producer
• Gold production of 91,419 oz in 2011
• Two world class projects (Segovia & Marmato)
• Triple Segovia to an annual production rate of 200,000 oz Au
in 2014
• Marmato in PFS, target production of 340,000 oz Au annually
• Be a positive agent of change for our communities
• Corporate commitment to best in class practises
• Foundations and outreach focused on communities,
education, health and safett
• Valuation growth by achieving milestones
Market Cap (US$M) v Peer Group
• Double mill throughput at existing Segovia plant
• Secure financing for new Segovia plant & mine
• Complete PFS at Marmato Project
SEPTEMBER 2012
TSX: GCM
3
THE RIGHT TEAM
Serafino Iacono, Executive Co-Chairman
Miguel de la Campa, Executive Co-Chairman
Over twenty-seven years of experience in capital markets and public companies
and has raised more than three billion dollars for numerous natural resource
projects internationally. He is currently the Executive Co-Chairman and a
director of Pacific Rubiales Energy Corp. Mr. Iacono was also a co-founder of
Bolivar Gold Corp and Pacific Stratus Energy, among others, and is involved in
numerous resource and business ventures in Latin America, Canada and United
States.
Mr. de la Campa has been involved in the financing and development of mining,
oil and other resource projects in the United States, Latin America, Europe and
Africa for the last thirty years. Currently serves as the Executive Co-Chairman
and a director of Pacific Rubiales Energy Corp. Previously, Mr. de la Campa was
the President and co-founder of Bolivar Gold Corp., as director of
Petromagdalena Energy Corp., and a co-founder of Pacific Stratus Energy He
holds a BSFS in International Economics and a Masters Degree in Political
Economics from Georgetown University.
Donald East, Chief Operating Officer
Maria Consuelo Araujo, Chief Executive Officer
Ms. Maria Consuelo Araujo has been Chief Executive Officer of Gran Colombia
Gold Corp. since August, 2010. Ms. Araujo has served as the Minister of Foreign
Affairs in Colombia from August 2006 to February 2007, prior to which she
served as Minister of Culture in Colombia from August 2002 to February 2006.
Ms. Araujo was also the Director of Postgraduate studies at the Universidad
Externado of Colombia. Ms Araujo is a Diplomat & Economist by trade with
postgraduate studies in the University of Milano.
Mr. East has over 35 years of experience in managing major project studies
around the world, including Yanacocha in Peru – one of Latin America’s most
important gold mines. Previously, he acted in various mining operations in
several capacities such as; Project Director at Gold Field’s Cerro Corona project,
Chief Advisor-Project Studies for Rio Tinto’s La Granja project, Development
Manager for Anglo American’s Michiquillay project and Senior Project Manager
of Hatch Associates.
Mike Davies, Chief Financial Officer
Alessandro Cecchi, Director of Exploration
Mr. Davies is a Chartered Accountant (Ontario) over twenty years of extensive
international and public company experience in financial management, strategic
planning and external reporting in resource and other sectors..
Mr. Cecchi is an exploration geologist with over eighteen years’ experience,
predominantly in South America, with a focus on gold exploration and
development. Formerly, he has worked with Bolivar Goldfields, Sardinia Gold
Mining, Dotly Financial, Hecla Mining and Medoro Resources.
SEPTEMBER 2012
TSX: GCM
4
COLOMBIA – A GREAT MINING JURISDICTION
 5th largest economy in Latin America
 Steadiest GDP growth in Latin America 1970-2007
 $8.8B in infrastructure investment through 2012
 Stable democracy, 70% government approval rating (1)
 Most secure Latin American country to do business (2)
 Ranked 7th in Countries for Mining Investments (3)
 2nd best investor protection in Latin America (Forbes)
1. Source: Canaccord Genuity: The Colombian Quarterly
SEPTEMBER 2012
2. World Bank, Doing Business 2010 and 2011 Reports
TSX: GCM
3. Behre Dolbear Group 2012
5
BUILDING THE LEADING COLOMBIA
FOCUSED GOLD PRODUCER - High Quality Asset Base
Segovia Operations
Marmato
0.3 million ounces of Gold (M&I)
1.1 million ounces of Gold (Inferred)
11.8 million oz Gold & 80.3 million oz Silver (M&I)
2.6 million oz Gold & 9.4 million oz Silver (Inferred)
In Top 10 of Producing Mines by Grade*
Produced 68,704 oz Au in 2011
Target production 200,000 oz Au by 2014
In Top 20 of Undeveloped Projects by Gold Resources*
Continue to produce ~23,000 oz/y Au near term
Prefeasibility Study – modern large scale mechanised
mine to produce 340,000 oz Au by 2016
*Source: NRH Research, Global Gold Mines & Deposits 2012 (publically traded companies with deposits > one million ounces in all resource categories)
SEPTEMBER 2012
TSX: GCM
6
BUILDING THE LEADING COLOMBIA
FOCUSED GOLD PRODUCER - Resource Growth
Segovia Operations
1.6
Marmato
16
1.43
14.4
1.4
14
1.2
12
1
10
2.6
9.8
3.2
Inferred
0.8
1.1
0.58
0.6
Inferred
8
Indicated
Measured
Indicated
Measured
6
0.4
5.5
10.0
1.1
1.7
4
0.5
0.2
0.2
0.1
0
June 2012
2
0.1
0
April 2012
January 2012
June 2012
 Strong resource growth
 Exploration upside:
 Marmato open at depth
 Segovia – only 4 of 27 know structures modeled
January 2011 NI 43-101 mineral resource update prepared by SRK
June 2012 NI 43-101 technical report update prepared by SRK
June 2010 NI 43-101 technical report by Scott Wilson & Stewart Redwood
April 2012 NI 43-101 resource update prepared by SRK
SEPTEMBER 2012
TSX: GCM
7
BUILDING THE LEADING COLOMBIA
FOCUSED GOLD PRODUCER - Reserve Growth
600,000
Gold Ounces
500,000
400,000
Segovia
300,000
Marmato
200,000
100,000
0
2012
2013
Segovia Operations



Produced 68,704 oz Au in 2011
Expect to produce 90,000 to 100,000 oz Au in 2012
Target annual production 200,000 oz Au by 2014
SEPTEMBER 2012
2014-2015
2016+
Marmato Operations



TSX: GCM
Historically produced ~23,000 oz/y Au
Expect to produce 23,000 oz Au in 2012
Target annual production 340,000 oz Au by 2016
8
SEGOVIA
High Grade, Producing Asset
 High-grade mesothermal gold vein system
 Average grade 13.3 g/t
 Four operating underground mines
 Two production streams; internal & 3rd party contractors
 Exploration Upside
 4 of 27 known structures modelled
 51,000m drilling program starting in Q3’12 ($15M)
 Expansion underway to target 200,000 oz Au per year




Produced 20,610 oz Au in Q2’12 (aver 590 tpd)
New mill tested at 1,000 tpd (June aver 737 tpd)
Plant upgrades to deliver 1,000 tpd in Q4’12
90-100,000 oz expected in FY’12 (up 31-46% YoY)
Category (1)
Gold Resource
Grade
Measured
136,000 oz
16.1 g/t
Indicated
156,000 oz
9.9 g/t
1,138,000 oz
13.6 g/t
Inferred
(1) GCM Resource update dated March 5, 2012 & April 15,2012
One of the Top 10 Producing Mines by Grade in the World
Source: NRH Research, Global Gold Mines & Deposits 2012 (publically traded companies with deposits greater than one million ounces in all resource categories)
SEPTEMBER 2012
TSX: GCM
9
SEGOVIA
Expansion Plan
2011
2012
2013
Phase I
• New Mill
1,500 tpd
Planned Projects
Capacity
Gold
Phase II
• Funded by CF from Ops • Funded by planned $100M project
financing & CF from Operations
Maria Dama
Pampa Verde
SEPTEMBER 2012
2014
• Crushing, Flotation &
Circuit Reconfiguration
• New “Chocho” Tailings
• New Assay Lab
• New Plant 2,500 tpd
• New GCM Mechanized Mine at Las Verticales
• PV Tailings
~500 tpd
1,000 tpd
1,500 tpd
2,500 tpd
68,704 oz
90 – 100,000 oz
TSX: GCM
120 – 140,000 oz
Target 200,000
oz Annually
10
MARMATO
A Mountain of Gold
 Development & exploitation potential of
entire deposit
 Average grade 0.91 g/t
 Producing 23,000 oz gold & 40,000 oz silver
annually – underground operation
 Exploration – 2012 deep drilling results:
 New deep zone of minimum 100M tonnes
potential ore, open at depth and along strike,
indicating increasing mineralization with depth
 Pre-feasibility Stage
Category (1)
 Potential phased underground & open pit mine
 Expect to complete PFS in Q4’12
Gold Resource
Silver Resource
Measured
1,725,000 oz
8,011,000 oz
Indicated
10,064,000 oz
72,319,000 oz
Inferred
2,588,000 oz
9,429,000 oz
(1) Marmato Technical Report, dated June 21, 20012, filed August 7, 2012
One of the Top 20 Undeveloped Gold Deposits in the World
Source: NRH Research, Global Gold Mines & Deposits 2012 (publically traded companies)
SEPTEMBER 2012
TSX: GCM
11
BUILDING THE FOUNDATION
First Half 2012 Results
Financial
 Production of 51,867 oz Au
 Up 58% over 1H’11
 Q2’12 approximately flat to Q1’12, while plant
upgrades were being carried out at Segovia
 Consolidated Cash Cost $1,256/oz
 Impacted by lower recovery rates in Q2’12
 Target less than $1,100/oz by end of 2012
 Gross margin of $11.6M
 Four consecutive positive quarters
 Poised to grow as production increases
 G&A of $7.8M, down from $10.3M in 2H 2011
 Expected run rate around $3.5M per quarter
SEPTEMBER 2012
TSX: GCM
12
CAPITALIZATION
TSX: GCM
Market Capitalization*
$120M
Shares Outstanding “GCM”
382M
Cash †
$4.1M
Debt (Silver Linked Notes) “GCM.NT.U” †
$68M
Insider Ownership
5.7%
*Share price C$0.315, as of Aug 10, 2012
† as of June 30, 2012
SEPTEMBER 2012
TSX: GCM
13
SILVER LINKED NOTES
TSX: GCM.NT.U
Innovative vehicle provides exposure to silver at deep discount
 7 year notes issued August 2011 with 5% annual coupon & principal repaid in years 4 to 7
 US$1,000 note face value represents financial equivalent of 66.7 oz Ag at US$15/oz
 Upon repayment, note holders will receive the financial equivalent of the underlying silver
ounces based on silver prices realized by GCM, subject to US$15/oz min.
IRR Matrix of GCM 5% Silver Note
Silver
Price
Note price at US$1,000 face value
$700
$800
$900
$1,000
$45
37%
33%
30%
27%
$40
34%
31%
27%
25%
$35
31%
28%
24%
22%
$30
28%
24%
21%
19%
$25
24%
21%
18%
15%
$20
20%
17%
14%
11%
Insider ownership ~5%
Please refer to Prospectus for complete details
SEPTEMBER 2012
TSX: GCM
14
VALUATION GROWTH
Achieving Milestones
GCM Valuation Upside
GCM
Peer Average [1]
C$122M
C$1,073M
Top tier resource profile
15.6M oz Gold
9.4M oz Gold
Enterprise value to total resources
US$15/oz Gold
US$102/oz
0.15x
0.56x
Lowest peer market capitalization
Price to net asset value
Achieve Project Milestones to Build Value
Milestones / Catalysts
Double mill throughput at existing Segovia plant to 1,000 tpd
Secure financing for new Segovia plant & mine
Complete PFS at Marmato Project
[1] Source: Company disclosures, FactSet, Bloomberg & available consensus estimates (as August 10, 2012)
Peer Group includes: AGI - Alamos Gold; ANV - Allied Nevada; AR - Argonaut; ARZ - Aurizon; AVM - Avocet Mining; AVR - Avion Gold; BAA - Banro Corp; BTO - B2Gold (PF); CEY - Centamin Egypt;
DPM - Dundee PM; GCM - Gran Colombia; GSC - Golden Star; LSG - Lake Shore Gold; OGC - OceanaGold; PRU - Perseus; SMF – Semafo.
SEPTEMBER 2012
TSX: GCM
15
www.grancolombiagold.com
MARCH
20122012
SEPTEMBER
TSX: GCM
21
16