Gold

Granada Gold

TSXV:GGM

Building a High-Grade Mine on Quebec’s Cadillac Trend

Press Releases

Overview

Granada Gold Mine Inc. (TSXV:GGM,OTC Pink:GBBFF,FWB:B6D) is a junior resource company currently advancing its high-grade Granada gold deposit in Quebec towards production.

The past-producing mine property is located on the Cadillac trend near other mines in an area where over 75 million ounces of gold have already been produced.

In a surprise to the geologists at Granada, the company recently unexpectedly discovered a deposit of rare earths and alkali metals located in the northern part of the property above the downward-sloping gold veins. This discovery is being closely examined to determine its size and exact composition.

With respect to the gold at Granada, the company is in a unique and potentially advantageous position. Not only does it have a well-defined open-pit, but it has already successfully gone through a lengthy permitting process and is the only non-producing gold deposit on the Cadillac trend that has mining permits allowing it to open-pit mine and ship to a local mill.

In addition, recent drill results showing wide high-grade areas near the surface (11.45 g/t gold over 33 meters) have supported a recent shift to a higher-grade mining scenario at Granada over the coming years – starting with open-pit mining at 2 g/t Au (up from 1 g/t in the previous estimates) – and then moving to underground mining with average grades of 4-6 g/t Au. Past underground mining at Granada during the 1930s recorded gold grades – in the range of 8-10 g/t. The restructuring of the resource estimate to a higher grade involved a reduction in the size of the pit to reduce the need for the clearing of overburden in order to improve the profitability of mining the deposit.

The potential of open-pit mining at higher grades for several years is also supported by a 2014 PFS which identified selected pit areas totaling 600,000 tonnes averaging 4.24 g/t that could be readily mined and shipped to a local mill.

The expectation of eventual underground mining in the 4-6 g/t Ag range as outlined in the recent 43-101 resource estimate is supported not only by the past mining experience at Granada but also by the company’s numerous drill intercepts showing very high grades along the downward sloping vein structure, as indicated in the cross-section of the deposit shown below. These high-grade intercepts occur below the defined pit, with the deposit open at depth and to the north and east.

Granada Gold’s Company Highlights

  • Granada Gold’s high-grade past-producing project is located in the mining-friendly jurisdiction of Quebec on the Cadillac trend.
  • The Granada project is located in proximity to 10 gold mines and can easily access the established mining infrastructure in the area.
  • The Granada project is a production-ready property with open-pit mining permits already in place.
  • Only 20 percent of the LONG Bars zone strike length has been explored to date, offering the company expansion potential.
  • Granada Gold has plans for further exploration and resource expansion.
  • Metallurgical test work is underway to lower capital and operating costs, provide processing options and de-risk the Granada project.
  • Three percent NSR to be paid as dividends once production begins at the Granada project.
  • An experienced management team leads Granada Gold and has years of experience in metallurgy, mining, geology and exploration.
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