Rouyn Noranda, Q.C. - TheNewswire - April 16, 2024 - Granada Gold Mine Inc. (TSXV:GGM) (OTC:GBBFF) (Frankfurt:B6D) (the “Company” or “Granada”) is pleased to announce significant advancements in its operational strategy, reflecting the company's commitment to maximizing shareholder value and contributing positively to the region's economy. Following recent developments in our high-grade gold circuit and the pricing of essential equipment, Granada Gold Mine wishes to share the following key updates:

 

1. Letter of Intent (LOI) with Private Bidder: On March 28, 2024, Granada Gold Mine entered into a new Letter of Intent (LOI) with a private bidder for a local mill, marking a crucial step forward in our milling operations. This strategic partnership underscores our dedication to leveraging top-tier facilities to optimize our processing capabilities and enhance operational efficiency. If the bid is successful, we would have the opportunity to ship rock for custom processing.

 

2. Non-Disclosure Agreement (NDA): In pursuit of milling opportunities, Granada Gold Mine has signed a Non-Disclosure Agreement (NDA) with a prominent player in the mining industry. This agreement enables us to evaluate the potential utilization of their circuit for processing ores from Granada, opening avenues for collaboration and mutual benefit.

 

3. Expansion of Mining Leases: As part of our ongoing efforts to secure long-term viability and capitalize on favorable market conditions, Granada Gold Mine is in the process of adding to our existing mining leases. This expansion reflects our confidence in the rich potential of our resources and reaffirms our commitment to sustainable growth and development. This has set the stage for milling agreements, as we have the leases and permits in place.

 

4. CEO Statement: Frank Basa, CEO of Granada Gold Mine, expressed optimism and determination in navigating the company's path forward: "We are evaluating all the opportunities, and we are confident that we will find the best fit. We want to demonstrate that we have opportunities here, and we are working hard to find the best fit."

 

Granada Gold Mine remains steadfast in its mission to deliver value to stakeholders while upholding the highest standards of environmental responsibility and community engagement.

 

Qualified Person

The technical information in this news release has been reviewed and approved by Claude Duplessis, P.Eng., GoldMinds Geoservices Inc., who is a member of the Québec Order of Engineers and a qualified person in accordance with the National Instrument 43-101 standards.

 

About Granada Gold Mine Inc.

Granada Gold Mine Inc. continues to develop and explore its 100% owned Granada Gold Property near Rouyn-Noranda, Quebec, which is adjacent to the prolific Cadillac Break. The Company owns 14.73 square kilometers of land in a combination of mining leases and claims. The Company is undergoing a large drill program with 30,000m out of 120,000m complete. The drills are currently paused to provide the technical team with the necessary time to evaluate and assimilate existing data. 

 

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.

 

Mineral Resource Estimate

On August 20, 2022 the Company released an updated NI 43-101 technical report supporting the resource estimate update for the Granada Gold project (Please see July 6, 2022 news release) reporting that the Granada deposit contains an updated mineral resource, at a base case cut-off grade of 0.55 g/t Au for pit constrained mineral resources within a conceptual pit shell and at a base case cut-off grade of 2.5 g/t for underground mineral resources within reasonably mineable volumes, of 543,000 ounces of gold (8,220,000 tonnes at an average grade of 2.05 g/t Au) in the Measured and Indicated category, and 456,000 ounces of gold (3,010,000 tonnes at an average grade of 4.71 g/t Au) in the Inferred category. Please see Table 1 below for full details. Report reference: Granada Gold Project Mineral Resource Estimate Update, Rouyn-Noranda, Quebec, Canada authored by Yann Camus, P.Eng. and Maxime Dupéré, B.Sc, P.Geo., SGS Canada Inc. dated August 20th, 2022 and with an effective date of June 23rd, 2022.

 

Table 1: Mineral Resource Estimate Showing Tonnes, Average Grade, and Gold Ounces

 

Cut-Off (g/t Au)	Classification	Type	Tonnes	Au (g/t)	Gold Ounces
0.55 / 2.5	Measured1	InPit+UG	4,900,000	1.70	269,000
	Indicated	InPit+UG	3,320,000	2.57	274,000
	Measured & Indicated	InPit+UG	8,220,000	2.05	543,000
	Inferred	InPit+UG	3,010,000	4.71	456,000

 

(1) The 1930-1935 production was removed from these numbers (164,816 tonnes at 9.7 g/t Au / 51,400 ounces Au). 

(2) The Independent QP for this resources statement is Yann Camus, P.Eng., SGS Canada Inc. 

(3) The effective date is June 23rd, 2022. 

(4) CIM (2014) definitions were followed for Mineral Resources. 

(5) Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resource has a lower level of confidence than that applying to a Measured and Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. 

(6) No economic evaluation of the resources has been produced. 

(7) All figures are rounded to reflect the relative accuracy of the estimate. Totals may not add due to rounding 

(8) Composites have been capped where appropriate. The 2.5 m composites were capped at 21 g/t Au in the thin rich veins and at 7 g/t Au in the low-grade volumes. 

(9) Cut-off grades are based on a gold price of US$1,700 per ounce, a foreign exchange rate of US$0.78 for CA$1, a processing gold recovery of 93%. 

(10) Pit constrained mineral resources are reported at a cut-off grade of 0.55 g/t Au within a conceptual pit shell 

(11) Underground mineral resources are reported at a cut-off grade of 2.5 g/t Au within reasonably mineable volumes. 

(12) A fixed specific gravity value of 2.78 g/cm3 was used to estimate the tonnage from block model volumes 

(13) There are no mineral reserves on the Property. 

(14) The deepest resources reported are at a depth of 990 m. 

(15) SGS is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issues that could materially affect the mineral resource estimate. 

(16) The results from the pit optimization are used solely for the purpose of testing the “reasonable prospects for economic extraction” by an open pit and do not represent an attempt to estimate mineral reserves. There are no mineral reserves on the Property. The results are used as a guide to assist in the preparation of a mineral resource statement and to select an appropriate resource reporting cut-off grade.

 

 The property includes the former Granada Gold underground mine which produced more than 50,000 ounces of gold at 10 grams per tonne gold in the 1930’s from two shafts before a fire destroyed the surface buildings.  In the 1990s, Granada Resources extracted a bulk sample (Pit #1) of 87,311 tonnes grading 5.17 g/t Au.  They also extracted a bulk sample (Pit # 2) of 22,095 tonnes grading 3.46 g/t Au.  

  

“Frank J. Basa”

Frank J. Basa, P. Eng. member of Professional Engineers Ontario

Chief Executive Officer

 

For further information, Contact:

Frank J. Basa

Chief Executive Officer

P: 416-625-2342

 

Or:

 

Wayne Cheveldayoff, 

Corporate Communications

P: 416-710-2410 

E: waynecheveldayoff@gmail.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 forward-looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements.