Operations

Segovia is a world-class, multi-million-ounce high-grade gold mining operation that has been producing gold for more than 150 years. The Segovia Operations are located in a gold mining complex in Colombia’s Segovia-Remedios mining district in the Department of Antioquia, approximately 180 kilometers northeast of Medellín. Within the Segovia Operations, the Company is current producing from four underground mines: Providencia, El Silencio, Sandra K and Carla. The core of the Segovia Operations are located with a unique freehold mining property (Mining Title No. RPP-140) dating from the 19th Century in which the Company owns the land, mineral and surfaces rights in perpetuity so long as it is carrying out exploitation. Over the last 10 years, under the operation of GCM Mining, Segovia has produced almost 1.3 million ounces of gold with an average head grade of 13.8 g/t with more than 90% sourced from the Company’s mines and the balance from its Artisanal Small Miner model. Within the municipalities of Segovia and Remedios, which have a combined population of approximately 100,000, GCM Mining generates over 4,000 jobs and has developed community relations and various programs, as more fully outlined in our Sustainability section of this website and our 2020 Sustainability Report.

Ore is processed through the Company’s Maria Dama process plant utilizing a process flowsheet that includes crushing, grinding, gravity concentration, gold flotation, concentrate regrinding, concentrate cyanidation, Merrill-Crowe zinc precipitation and refining of both the zinc precipitate and gravity concentrate to produce a final gold/silver doré product. A new polymetallic processing plant is being constructed in 2021 to recover zinc, lead, gold and silver from tailings to provide an additional source of cash flow from the mining operations. Tailings from the Maria Dama plant are treated through a filter press operation that allows GCM Mining to dry stack the tailings in its El Chocho tailings Storage facility. GCM Mining also has a robust exploration strategy in process within its RPP-140 Mining title.

The capacity of the Maria Dama Plant at Segovia is being expanded in 2021 from 1,500 tpd to 2,000 tpd. The plant includes crushing, grinding, gravity concentration, gold flotation, cyanidation of the flotation concentrate, Merrill-Crowe precipitation and refining of both the Merrill-Crowe precipitate and gravity concentrate to produce a final doré. The Company’s onsite lab provides quick turnaround of development samples; exploration samples processed in SGS Medellin.

The El Chocho tailings storage facility was inaugurated in 2019 andreceives material via pipeline from the Maria Dama Plant. A filter press, commissioned in 2019, enables tailings to be dry stacked and water is re-circulated for use in the plant, In addition, an onsite water treatment facility is treating excess water to Colombian standards before being discharged. The El Chocho site will be rehabilitated for use by the community use at the end of its useful life.

GCM Mining Gold’s business model incorporates local informal miners through its artisanal mining model (“ASM”), which historically has represented 10-15% of Segovia’s gold production. As of early 2021, the Company has agreements with 56 third party miner groups who mine in designated areas within its title. GCM Mining pays for recovered gold at a fixed price, processes ore (reducing mercury use) and sells the gold/silver. Benefits including health and safety training, reduction in environmental impact and economic growth.