Gran Columbia's #1 asset is a 12M gold ounce open pit deposit estimated to be able to produce gold at $524 per ounce at a rate of 330k ounces per year with a LOM of 21 years. This project is currently in the pre-feasibility stage.

For 2011, they will have produced around 90k ounces from 6 underground mines with a 2012 target of producing 170k ounces at a cost of $900 estimated.

Currently, their MC of 164M (43 today, up 10% since my call yesterday) gives their Marmato open pit project a value of $13.67 per ounce of gold in the ground. That is incredible value right there. However, that is also giving it Zero value for their 6 underground gold mines, their projected 170k ounces of production this year, their 81M in the bank, their infrastructure and equipment. The upside from the current 43 cents is a 10 bagger over the next 3 years IMO if they deliver on their plan.

Also note that it took GMP only 8 days to arrange a 100M loan to the company in December. In our current environment, that speaks loud about the company's credibility. I think we were hugely oversold-like so many others- in the tax loss season and we should see a decent bounce to the 70 cents level in the next few months. Also note that they will be doing an 80k meter drill program in 2012, huge exploration potential.

The negatives are:

Being in Columbia

Share float of 382M, 623M fully diluted.

A strong downtrend in the chart for the last year.

I welcome any other challenges that people can bring forward here. I will discuss their 3 negatives in my next few posts.

Let's hope we keep seeing this Christmas rally climb higher!

Glorieux