Welcome to the Gran Colombia Gold Q1 2020 Results Conference Call. My name is John and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note the conference is being recorded. Now I will now turn the call over to Mr. Mike Davies.

Great. Thank you, John. Good morning, and thank you for joining us today for the Gran Colombia and Caldas Gold first quarter 2020 results webcast. With me on the webcast this morning is our CEO, Lombardo Paredes. And as is customary, I will first go through our prepared remarks regarding our performance in 2020 and then Lombardo will be available as we open things up for the Q&A session. Before we proceed with the presentation, I would first like to draw your attention to our legal disclaimer regarding forward-looking statements that may be made by us during the webcast this morning. And as we get started, let me first introduce you to Caldas Gold, our new publicly listed subsidiary. We completed the RTO transaction with Bluenose at the end of February and commenced trading on the TSX Venture Exchange on February 28th. Caldas currently has a market cap of $93 million, $14 million of cash in the bank at the end of March and no debt. The PFS is on track and we are working behind the scenes on our financing options to build Colombia’s next major goldmine. Drilling is continuing in 2020, setting us up for a solid reserve for the PFS and has recently discovered a new zone which opens the possibility for further resource expansion. We are also proud to say that Caldas Gold, much like Gran Colombia, will have a sincere focus on health, education, community and the environment and we have already commenced our early-stage ESG programs in this regard. As we all know, the world has been dealing with unprecedented times since we had our 2019 year end webcast at the end of March. At Gran Colombia and Caldas Gold, we implemented our business continuity plan in March in response to the national quarantine,…

[Operator Instructions] And our first question is from Sid Rajeev from Fundamental Research. Your line is open. Go ahead with your question.

Hello.

Hello.

Hello, Sid, your line is open. Go ahead with your question.

Congratulations to you gentlemen. Mike, since you mentioned that you don’t want to talk too much about the transaction, do you mind giving us more color on the current capacity of – I mean, operating capacity of Segovia and Marmato? What they currently operating at?

The capacity at Segovia is 1500 tons a day. Marmato is at 1200 tons a day. Lombardo, did you want to mention sort of where we are in terms of production at this point with both projects given that the quarantine in Colombia?

Segovia, the capacity of the mill after its expansion is 1500 tons per day. At Marmato, it’s around 1200 tons per day. And with that, we are planning to produce Segovia this year around 220,000 ounces of gold and in Marmato, we are planning to produce 35,000 ounces of gold. Of course, the pandemic situation maybe will change that a little bit, but we do not expect that the changes are going to be very great. In – as you know, we are doing a lot of exploration, a lot of exploration in Segovia and that will put us in a much better position during next year to increase the production. In Marmato, we have the projects which are above 200 million, 300 million in that expansion of the upper mine, a new mine in deep Marmato. And the intention is for 2023, we will have that in place of 150,000 ounces of gold. That is our plan for Segovia – for Segovia and Marmato.

Okay. Thanks. Pretty much every parameter looked good in Q1 except that plays to be this.

Sorry. Sid, you blanked out for a second, everything looked good except for?

Except for the head grades at Segovia. And - go ahead.

Yes, when we gave our initial guidance this year, we said that the grades for Segovia given the mix of materials coming and adding in some additional workplace is we guided this year that Segovia’s grade was going to be about 13 to 15 grams per ton. Certainly, where we’ve committed the first quarter at about 14.9, it’s in the upper end of that and we are still holding to our grade expectation for the year.

Sounds good. Thank you so much, Mike,

All right.

Our next question…

Go ahead.

Is with - from Derek Macpherson from Red Cloud Securities.

Morning, Mike, Lombardo. And congratulations on another solid quarter. Looking a little bit ahead and focus on Marmato, obviously, you guys have started to incur some of the costs of the optimization program associated with the PEA. When do you expect to see some of the benefits translate into the operations? I guess, including sort of the impact of COVID?

Well, in Marmato, right now we are dedicated to implement the PEA and for the recommendation made by SRK in relation with mine utilization. First thing is, we improve to develop the levels 21 of 22 of the so-called transition zone between the existing mine and the deep wall. We are now mechanizing that part of the mine, level 21 of 22, we have three on those 12 already in place and also in the upper part of the mine, the older mine levels 26 to 20, we are applying an optimization program in order to improve revolution and to get better results with the base. We are going to start to see real results about that optimization that we are doing probably around June. And in the month of May, for example have been very stormy because, you know the coronavirus situation has created a lot of problem because much of the mine is in middle of the three municipalities which is far 10 kilometer, 20 kilometer far from Marmato and that's created a lot of problem with the three of the measures you have to get to have transmitting of Coronavirus. So, we have to implement the strict – more than strict protocols to deal with that. So even up today, we have not been able to have the full labor force in place. Up to now, we have only about 25% of the labor force in place. This week - this week, we expect that we are going to incorporate around 75% of the labor force. Let's see. But to answer your question, we expect to see the result of our optimization plans in the open mine by June – June this year.

Okay. That's good. And then, my second question relates to, obviously, you guys have planned a fairly aggressive exploration program at Segovia this year. Maybe give us the timing – or has there been any impact on that because of the coronavirus? And also, when do you expect the next exploration update to commence?

Well, the Coronavirus, the effect of Coronavirus in Segovia was difficult to know in late March and the mid of April. Now in Segovia we have – the operation has about 92%, 94% complete. So 94% of the labor force is in place, we still have some problem with the supervisor of the mine. We have to fly them from Medellin to Segovia following on a strict bio protocol. But I can say that the operations in Segovia are in normal condition. Not up full 100%, because the inefficiencies that you have to introduce because of bio-security protocols like social distance, like temperatures, like cleaning, they avoid their operation, the people have to enter in the mine in a line, trying to each – you separate each one. So, that introduced some, let's say problem with the productivity. But for example, in this month, we are expecting to have the month of May, we are expecting to have closed all around 17,000 ounces of gold. Exploration, all the five rigs that we have in Segovia are operating. The exploration program did not suffer so much. So, a little bit in part of April, we have only three drilling rigs. But at the end of April, we were already in five rigs. So, we do not expect disruption in our operation program in Segovia.

Okay. Yes, I think the only thing to add to that, Derek, is we are not certain yet when the next drill results update will be. It depends on the ability of ourselves to get the assays through the labs which have been largely shutdown during the quarantine.

Okay. All right. That the – the program itself is only minor - only has a minor impact. That's great. That’s all the questions for me. Thanks guys.

Great. Okay. Thanks, Derek.

[Operator Instructions]

I have a couple of questions that have come in on the web portal. First one, how much cash we generated of all the outstanding debentures, options, warrants would be converted into stock, i.e. the outstanding base going from $61 million to fully diluted of $89 million. The convertible debentures would in effect turn into shares, no cash received on that. But on the options and warrants, depending on the exchange rate will probably be somewhere between US$60 million and US$65 million. The prices range from about CAD $2.21 up to CAD $6.50 across the board. So, pretty much everything is either in the money or post to the money at this point. There was a couple of questions related to the takeover bid, did we say that there was a secret all-cash bid from other company for Guyana Goldfields? The answer to that is, yes I did say that. We read in the press released on Sunday night that there was an all-cash bid that it come in from another party that hadn’t been spoken about previously. And then the follow-up to that was why we linked the success of the Guyana Goldfields takeover to the Gold X takeover and vice versa? The answer to that is, as we saw that the opportunity to generate the synergies between the companies was mutually exclusive and we did not want to push forward unless we had both parts of the puzzle to make our plans work. John, any other questions today?

No questions at this time.

All right. Well we’d like to thank you for joining us this morning. Our contact information is available if you would like to reach us separately after the meeting, that’s great. And we look forward to keeping up to date over the next few months as things unfold in our business and thank you for taking the time.

Thank you. Ladies and gentlemen that concludes today’s call. Thank you for participating and you may now disconnect.