Granada receives trenching, drilling permit for Aukeko

Nov 22, 2017

2017-11-22 14:00 ET – News Release

Mr. Frank Basa reports

GRANADA GOLD MINE, GOLD PROPERTY ON THE CADILLAC TREND, IN QUEBEC, RECEIVES TRENCHING AND DRILLING PERMIT FOR THE AUKEKO GOLD MINE

Granada Gold Mine Inc. has received a trenching and drill permit for its Aukeko property, immediately adjacent to its flagship gold property, the Granada mine, in the province of Quebec, Canada. The company will begin with site visits to locate areas of trenching and diamond drilling. The permit has been granted for 6,000 metres of drilling.

The company also announces the closing of its previously announced private placement of convertible secured notes in an aggregate amount of $250,000. The notes and the common shares and warrants into which the notes are convertible are subject to a hold period that expires on March 22, 2018.

The Aukeko mine has had historical exploration undertaken in the late 1930s, where a shaft was sunk to 13 metres and extensive trenching was undertaken on surface. Considerable detailed mapping at that time identified several auriferous structures within a 500-metre wide, east-west-trending zone with shearing, alteration and quartz veining, along with numerous porphyry intrusions. Of significance is the Auk shear zone, where the Aukeko shaft was sunk in conjunction with stripping and trenching in the same vicinity. This zone was mapped over a one-kilometre length with an average width of 50 metres. The Auk shear zone was the location of the Bert vein, where three bulk samples were reported to have been taken in 1938 from a trench approximately 50 metres to 150 metres east of the Aukeko shaft that averaged a grade of 7.0 ounces of gold per ton (240.0 grams per tonne) (from public files with MERN (Ministere d’Energie et Ressources Naturelles) GM52851).

The Aukeko gold mine is part of the east-west-trending structure on the Granada gold mine property. It is two kilometres east from the extended Long Bars zone, where over 120,000 metres of drilling have been undertaken to date including historical drilling from the 1990s. A farther 1.9 kilometres east is the Austin-Rouyn mine. The potential strike length on the property is 5.5 kilometres, beginning at the westernmost drill hole near the historical Granada shafts and extending eastward to the historical Austin Rouyn shaft, where grab samples in 1940 showed up to 6.57 ounces of gold per ton (225.2 grams per tonne). Grab samples are selected samples and are not necessarily representative of the mineralization hosted on the property. Note that there are two crosscutting intrusive dikes of undefined width within that strike length. The potential strike length is conceptual in nature as there has been insufficient exploration to define the full length of the mineralized material and it is uncertain if further exploration will do so.

“We are expanding beyond our extended Long Bars zone on strike going east to test the remainder of the 80 per cent of unexplored mineralized structure,” stated Frank J. Basa, PEng, president and chief executive officer of Granada Gold Mine.

Qualified person

Claude Duplessis, PEng, of Goldminds Geoservices Inc., a geological, environmental and mining consultant, is an independent qualified person in accordance with National Instrument 43-101, and has reviewed and approved the contents of this news release.

About Granada Gold Mine Inc.

Granada Gold Mine is developing the Granada gold property near Rouyn-Noranda, Que.

An updated mineral resource estimate and revised block model dated June 30, 2017, with effective date of May 16, 2017, includes the first material estimate of high-grade gold resources discovered in zones at depth immediately north of the Long Bars zone open-pit deposit.

An initial inferred underground resource of 10,386,500 tonnes grading 4.56 grams per tonne gold at a cut-off grade of 1.5 grams per tonne (1.5 million ounces gold) has been outlined along 600 metres of strike, north of the original near-surface discovery at Granada. Open-pit constrained resources have 625,000 ounces measured at 1.14 grams per tonne gold and 182,700 ounces indicated at 1.26 grams per tonne with a cut-off grade of 0.39 gram per tonne gold (807,700 ounces measured and indicated at 1.16 grams per tonne gold), representing a major increase in block model estimates for Granada versus the 2012 block model.

We seek Safe Harbor.

https://granadagoldmine.com/en/news/2017/