Gran Colombia Announces 51% Increase in Measured and Indicated Gold Resources at Marmato

TORONTO, Sept. 4, 2011 /CNW/ --
TORONTO, Sept. 4, 2011 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM,
GCM.WT, GCM.WT.A) is pleased to announce a new National Instrument
43-101 mineral resource estimate for its Marmato Project containing
10.0 million ounces of gold in the Measured and Indicated categories
and an additional 2.4 million ounces of gold in the Inferred category
at a cut-off grade of 0.3 g/t (see table below). In addition, there are
an estimated 64 million ounces of silver in the Measured and Indicated
categories and a further 11 million ounces of silver in the Inferred
category. This new in-pit mineral resource represents a 51% increase in
measured and indicated gold ounces and a 73% increase in measured and
indicated silver ounces compared to the previous mineral resources
dated January 6, 2011.

Commenting on these results, Serafino Iacono, Executive Co-Chairman of
Gran Colombia noted, 'We are extremely pleased with the success of our
infill drilling program, which has significantly increased both the
quantity and the quality of our mineral resources, as well as the
overall gold grade, all of which will be incorporated in the
pre-feasibility study that is currently underway.'

                                             GOLD              SILVER

                               Tonnes   Grade   Ounces   Grade   Ounces

(at 0.3 g/t cut off)             (mm)   (g/t)     (mm)   (g/t)     (mm)

Measured Mineral Resource          53     1.1      1.9     9.7       16

Indicated Mineral Resource        254     1.0      8.1     5.8       48

Measured and Indicated Mineral                                  
Resource                          307     1.0     10.0     6.5       64

Inferred Mineral Resource          68     1.1      2.4     5.1       11

In addition to this in-pit resource, SRK Consulting (UK) Ltd., which
performed the mineral resource estimate, has also identified an
underground mining resource of 2.1 million tonnes at a gold grade of
1.8 grams per tonne representing 120,000 ounces of Measured and
Indicated gold resources plus 6.4 million tonnes grading 2.3 g/t gold
or 500,000 ounces of gold in the Inferred resource category.

The above estimate is based on over 180,000 metres of diamond drilling
and cross-cut samples. The updated estimate reflects results from an
additional 157 drill holes or 52,500 metres, plus 732 metres of
cross-cut sampling, collectively representing a 53% increase in the
assay database since the previous mineral resource estimate was
announced.

The complete NI 43-101 Technical Report will be filed within 45 days and
will be available on the Company's website and www.sedar.com. A webcast/conference call will be scheduled at that time to provide
further details about this updated resource.

In May of this year, the Company filed a Preliminary Economic
Assessment, also prepared by SRK, indicating that the preferred mining
method is open pit with contractor mining.  Based on processing 283
million tonnes of ore at a rate of 40,000 tonnes per day, production
would average 340,000 ounces of gold and 1.3 million ounces of silver
per year over a 21-year mine life.  The cash operating cost is expected
to be US$524 per ounce of gold, net of silver credits. Assuming a life
of mine capital cost of US$550 million, total cost per ounce is
estimated to be US$643.  These estimates assume an average gold grade
of 0.9 g/t, a stripping ratio of 3.3:1 and a metallurgical recovery of
88% for gold and 60% for silver.  The complete Preliminary Economic
Assessment is available on www.sedar.com as well as the Company's website.

Gran Colombia has retained the services of Hatch Ltd. to conduct a
Pre-feasibility Study for the Marmato project utilizing the mineral
resources reported today, with the final report expected in the first
quarter of 2012.

Qualified Person:

Ben Parsons, Senior Resource Geologist with SRK Consulting (UK) Ltd.
prepared the Marmato Project mineral resource estimate. For detailed
information on the key assumptions, parameters and methods used to
estimate the mineral resources, along with other information about the
properties, please refer to the Technical Report.

About Gran Colombia Gold Corp.

Gran Colombia is a Canadian-based gold and silver exploration,
development and production company with its primary focus in Colombia. 
Gran Colombia is currently the largest underground gold and silver
producer in Colombia with six underground mines in operation.  In
addition, Gran Colombia is also developing a large-scale, open-pit gold
and silver mine at Marmato.  The Company also has a highly-prospective
land position in Colombia as well as an advanced stage property in
Venezuela and earlier stage properties in Mali.

Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.

Cautionary Statement on Forward-Looking Information:

This news release contains 'forward-looking information', which may
include, but is not limited to, statements with respect to the future
financial or operating performance of the Company and its projects.
Often, but not always, forward-looking 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 press release and Gran
Colombia disclaim, 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.

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