Granada Gold CEO Frank Basa addresses highlights regarding the company’s gold resource and discusses upcoming plans for 2018.
Looking to further expand the measured and indicated resource, the company plans to continue drilling the property while also working on a project feasibility study.
Basa also addresses the milling agreement the company has entered with Canada Cobalt Works (TSXV:CCW) (formerly Castle Silver Resources), which will allow for early processing of Granada Gold ounces and later milling of Canada Cobalt’s cobalt–silver ore from its Castle mine in Ontario.
Below is a transcript of our interview with Granada Gold CEO Frank Basa. It has been edited for clarity and brevity.
Investing News Network: Please give our investor audience an overview of Granada Gold and its namesake property in Rouyn-Noranda, Quebec.
Granada Gold CEO Frank Basa: Our property is located in the province of Quebec, on the Cadillac Trend and next to the city of Rouyn-Noranda.
To date, we have spent a significant amount on the project, drilling approximately 5 million ounces measured, indicated and inferred. We have open-pit potential and a pit-constrained resource of 800,000 ounces at 1 gram and over. The majority of our inferred underground ounces have grades of 4.56 g/t gold.
Going forward, we are looking to increase our resource to 6.2 million ounces measured and indicated and will be trying to remove the inferred resource category through upgrades.
INN: Please provide an overview of the Rouyn-Noranda region and its significance as a gold-mining area.
FB: The Cadillac Trend is one of the richest trends in Canada. It starts in Quebec and trails up to Northern Manitoba, hosting multiple multi-million-ounce deposits that are similar to ours or much larger.
INN: What is next for the Granada Gold project and how does that fit into the company’s long-term plans?
FB: Over 2018, the company will be launching a two-year drilling program worth $21 million. The goal is to increase our resource to 6.2 million ounces at a grade of 4.5 g/t gold. We are also looking at completing a feasibility study this year and aiming to go into production at 80,000 to 100,000 ounces a year.
INN: What is the significance of the milling agreement with Canada Cobalt? How will that impact the project moving forward?
FB: Part of our intent this year is to mill some rock. We have an agreement for a “rolling start,” which will allow us to process 25,000 ounces a year for the first three years. We intend to install a mill on the formerly producing Castle mine property in Ontario, which will process 600 tonnes a day. While this may be small for Granada, it is large enough for the Castle deposit. After three years of processing ore from Granada Gold, the mill will process high-grade cobalt-silver ore for the Castle mine.
INN: Savvy investors know strong management is key to a company’s success. Are there any executives you would like to highlight on your board and management team?
FB: We have a number of “old school” people on our board with many years of experience in mining and drilling. We also have First Nations representation on our board, making us one of the only junior companies on the TSX to do so.
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