ROUYN NORANDA, QC, March 16, 2021 /CNW/ - Granada Gold Mine
Inc. (TSXV: GGM) (the "Company" or "Granada") is pleased to
announce the filing on SEDAR (www.sedar.com) of a technical report
for its Granada Gold Project. The report, dated March 15, 2021, is entitled "Technical Report on
the Granada Gold Project Mineral Resource Estimate Update,
Rouyn-Noranda, Quebec, Canada."
The report can also be found on the Company's website at
www.granadagoldmine.com and provides an updated High-Grade Mineral
Resource Estimate of the Granada Gold Deposit using narrow, rich,
vein modelling and both open pit and underground resources and
revised pit optimization parameters which are based on the
possibility of off-site custom milling ore rather than constructing
and using an on-site mill.
The report was prepared in accordance with the regulations laid
out in National Instrument 43-101 – Standards of Disclosure
for Mineral Projects ("NI-43-101") by Yann
Camus P.Eng. and Maxime Dupéré, géo., of SGS Canada Inc.,
who are independent "Qualified Persons" as defined by NI 43-101.
The report supports, and provides greater detail about, the
technical basis and scientific rationale of the updated resource
estimate initially announced in a Company press release on
January 29, 2021. The updated MRE
focused on using a scenario with higher cut-off grades than that
used in the 2019 MRE. Gold price used is 1600 US$/oz.
The report concludes
There is an opportunity on the Project to extend known
mineralization at depth and along strike on the Property.
The Authors consider that the Granada deposit contains a significant open
pit and underground Mineral Resource that is associated with a
well-defined gold mineralized trend and model. The current Mineral
Resource Estimate Update has shown that the Deposit can likely be
mined by conventional open pit and underground mining methods with
a scenario of off-site custom milling rather than constructing and
using an on-site mill. Deeper drilling recently completed also
demonstrates that the Property has the potential for a significant
underground resource.
The Authors consider the Property to have significant potential
for delineation of additional Mineral Resources and that further
exploration is warranted. Granada Gold's intentions are to continue
to drill the Deposit in 2021 and plan to direct their exploration
efforts towards resource growth, with a focus on extending the
limits of known mineralization along strike and at depth, as well
as infill drill the existing deposit in order to convert portions
of Inferred mineral resources into Indicated or Measured.
Given the prospective nature of the Property, it is the Author's
opinion that the Property merits further exploration and that a
proposed plan for further work is justified. A proposed work
program by SGS will help advance the Deposit towards a
pre-development stage and will provide key inputs required to
evaluate the economic viability of a mining project (open pit and
underground) at a pre-feasibility study level.
SGS is recommending Granada Gold conduct further exploration,
subject to funding and any other matters which may cause the
proposed exploration program to be altered in the normal course of
its business activities or alterations which may affect the program
as a result of exploration activities themselves. For 2021, a total
of 45,000 m of drilling is proposed
to continue to focus on expanding and extending mineral resources,
upgrading existing Inferred resources as well as exploring the
Deposit at depth.
The total cost of the recommended work program is estimated at
C$10,775,000 (Table 1).
Table 1 Recommended 2021 Work Program for
the Granada Deposit
Item
|
Cost in
CAD$
|
Resource Expansion
Drilling and Resource Classification
improvement 2021 (Open Pit; <500 m depth) 15,000 m
|
$2,250,000
|
Resource
Identification Drilling (Underground; > 500 m depth)
drilling 20,000 to 30,000 m
|
$6,000,000
|
Assays/Geochemistry
|
$1,400,000
|
Additional
Metallurgical Testing
|
$250,000
|
Continued
geotechnical studies for improved pit optimization
parameters
|
$150,000
|
Environmental
Baseline Studies
|
$150,000
|
Updated Resource
Estimate
|
$75,000
|
Pre-feasibility Study
and Related Studies
|
$500,000
|
Total:
|
$10,775,000
|
Qualified person
The technical information in this news release has been prepared
by Yann Camus, P.Eng., independent
qualified person of SGS and was reviewed by Claude Duplessis, P.Eng., GoldMinds Geoservices
Inc. member of Québec Order of Engineers and a qualified person in
accordance with National Instrument 43-101 standards.
About Granada Gold Mine Inc.
Granada Gold Mine Inc. continues to develop the Granada Gold
Property near Rouyn-Noranda,
Quebec. Approximately 120,000 meters of drilling has been
completed to date on the property, focused mainly on the extended
LONG Bars zone which trends 2 kilometers east-west over a potential
5.5 kilometers of mineralized structure. The highly prolific
Cadillac Break, the source of more than 75 million plus ounces of
gold production in the past century, cuts through the north part of
the Granada property, but is not
necessarily indicative of mineralization hosted on the company's
property.
The Granada Shear Zone and the South Shear Zone contain, based
on historical detailed mapping as well as from current and
historical drilling, up to twenty-two mineralized structures
trending east-west over five and a half kilometers. Three of these
structures were mined historically from four shafts and three open
pits. Historical underground grades were 8 to 10 grams per tonne
gold from two shafts down to 236 m
and 498 m with open pit grades from
3.5 to 5 grams per tonne gold.
Updated Mineral Resource
The updated resource at the Company's Granada Gold project in
Rouyn-Noranda, Quebec was
estimated by SGS Canada and outlined in a January 29, 2021 news release.
Updated Mineral Resource Estimate Base Case with Details
Between the Open Pit Portion and the Underground Portion
Type
|
Category
|
Tonnes
|
Au
(g/t)
|
Gold
Ounces
|
In Pit
|
Measured1
|
3,756,000
|
1.89
|
228,000
|
Indicated
|
1,357,000
|
2.55
|
111,000
|
Measured+Indicated
|
5,113,000
|
2.06
|
339,000
|
Inferred
|
34,000
|
11.29
|
12,000
|
Underground
|
Measured
|
37,000
|
4.22
|
5,000
|
Indicated
|
807,000
|
4.02
|
104,000
|
Measured+Indicated
|
844,000
|
4.03
|
109,000
|
Inferred
|
1,244,000
|
6.33
|
253,000
|
1.
|
Cut-off grades are
based on a gold price of US$1,600 per ounce, a foreign exchange
rate of US$0.76 for CA$1, a gold recovery of 93%
|
2.
|
Pit constrained
mineral resources are reported at a cut-off grade of 0.9 g/t Au
within a conceptual pit shell
|
3.
|
Underground
mineral resources are reported at a cut-off grade of 3.0 g/t Au
within reasonably mineable volumes
|
The Company is in possession of all mining permits required to
commence the initial mining phase, known as the "Rolling Start",
which allows the company to mine up to 550 tonnes per day.
Additional information is available at www.granadagoldmine.com.
"Frank J. Basa"
Frank J. Basa P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service
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
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
SOURCE Granada Gold Mine Inc.