May 1, 2013, Calgary, Alberta: Antioquia Gold Inc. (“Antioquia Gold” or the “Company”) (TSX-V: AGD; OTCQX: AGDXF) is pleased to announce that Rodger Roden, CA has been appointed as the Company’s Chief Financial Officer, effective immediately. Mr. Roden is a Chartered Accountant with more than 25 years of industry experience. He has worked as Vice President of Finance/Chief Financial Officer with public and private companies in a broad range of industries. His experience includes all aspects of corporate finance, mergers and acquisitions, IT implementations, tax, and business systems and process analyses and implementation. More recently Mr. Roden has worked exclusively in the mining industry and is currently CFO to several public companies.
Ms. JoAnne Dorval-Dronyk has resigned as the Chief Financial Officer of the Company, effective April 30, 2013. The Board of Directors would like to thank Ms. Dorval-Dronyk for her contributions to the Company.
The Company also announces that it intends to complete a non-brokered private placement for aggregate gross proceeds of up to $500,000 via the issuance of common shares at a price of $0.035 per common share.
The Company also announces that subsequent to the recent changes with respect to management and directors with an increased focus on mining development, the Company has retained IBK Capital Corp. (“IBK”) and Mr. Craig Duncan, an independent consultant as its financial advisors to explore a range of potential strategic alternatives for the Company with a goal to enhancing shareholder value.
While undertaking this review, the Company’s Board of Directors and its senior management team will remain focused on executing its longer term business plan with an emphasis in assembling information to make a production decision for its flagship Cisneros property by the end of the 2014 calendar year. Currently it is estimated that a total of $12 million would be required to complete the necessary work described below that would provide the Company with the information it needs to make a production decision.
The Company expects that the key milestones and timelines required (some of which has already been completed) are as follows:
- 45,000+ m of core diamond drilling has been completed to date;
- Numerous multi-vein gold bearing structures open at depth and along strike have been discovered;
- Understanding of potential resources was significantly improved in 2012 augmenting discovery success;
- A National Instrument 43-101 (“NI 43-101”) compliant resource estimate is currently being prepared for the Guayabito and Guaico deposits, with delivery scheduled for early June
- Further exploration including diamond drilling and bulk sampling will be carried out in two tunnels in the Guaico and Guayabito prospects
- Governmental approval has been received for the Guaico tunnel environmental and development permits;
- The 650 m long Guaico tunnel will be designed and built during 2013 and will support midsize U/G production equipment;
- The company expects that a NI 43-101 compliant preliminary economic study will be undertaken with the following milestones:
- Mine Method & Design completed by September 2013;
- Process Plant Preliminary Design completed by October 2013 (incorporating existing used equipment owned by Antioquia Gold and metallurgical testing specific to Guaico and Guayabito ore types); and
- Site Infrastructure (Surface Facilities, Dumps and Tailings Disposal) layout design (including supporting geotechnical and hydrological studies) by October 2013
- Carry out sufficient exploration drilling (both surface and underground) to establish a measured resource of a significant quantity to provide for the first 5 years of production and extend the resource base for 15+ years of production;
- Additional surface drilling will be carried out on 7 exploration zones already identified to expand the overall resource base;
- Design and build the +600 m Guayabito tunnel also supporting midsize U/G production equipment and extend the Guaico tunnel into the Papi and Nus prospects;
- Produce final mine and plant designs and incorporate them into a Pre-Feasibility Study or Feasibility Study in order to make a production decision by year end;
There can be no assurance that any transaction will occur and there is no defined timeline for the strategic alternatives review. The Company does not intend to comment further regarding this review until such time, if any, as Antioquia Gold determines that disclosure is appropriate or required.
About Antioquia Gold Inc.
Antioquia Gold has been exploring for precious metals in Colombia since 2007 where its current holdings are close to 40,000 hectares located throughout Colombia. Antioquia’s principal asset, which is being actively explored, is its 5,630 hectare Cisneros Project, located 55 km northeast of Medellin in the Department of Antioquia, Colombia. At the Cisneros Project the Company has conducted extensive geochemical and geophysical programs over the entire property and has identified to date eleven (11) exploration z ones. On the original discovery zone it has drilled over 45,000 metres and is well versed in the understanding of the deposit type and the project’s path to resource definition and production.
On behalf of Antioquia Gold Inc. Fernando Jaramillo
For further information on Antioquia Gold Inc., visit our website at 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 release.
This news release may contain certain forward-looking information. These statements include the statements with respect to the timing and milestones for 2013 and 2014. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. There can be no assurance that such information will prove to be accurate, and that actual results and future events could differ materially from those anticipated in such information. This forward- looking information reflects the Company’s current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to, the current share price of the Company’s common shares, anticipated exploratio n costs and results of the Company’s projects and exploration and development of the Company’s projects, other costs and expenses of the Company and possible financing scenarios. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of the Company and its projects; general business, economic, competitive, political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals.
The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.