Wayne Cheveldayoff
Corporate Communications
Nord Precious Metals Mining Inc. (TSXV: NTH; OTCQB: CCWOF; Frankfurt: 4T9B)
Coniagas Battery Metals Inc. (TSXV: COS, OTC Pink CNBMF)
Granada Gold Mine Inc. (TSXV: GGM; OTC: GBBFF; Frankfurt: B6DA) [email protected]
mobile 416-710-2410
(Article)
Granada Gold Mines: Fully Permitted and Shovel Ready 1M Oz Gold Resource Project in Quebec
Granada Gold Mines has a 1M oz gold resource (0.5M oz indicated + 0.5M oz inferred) open-pit at 2 g/t, with potential for significantly higher grades of 3-5 g/t based on bulk sampling. Underground resource is 4.6 g/t with historical mining grades of 9-10 g/t.
The company is positioning itself as an attractive takeover target, with a fully permitted, shovel-ready project on the prolific Cadillac Break in Quebec. Multiple nearby mills are seeking ore feed in the coming years.
Granada aims to prove higher in-situ grades and ounces through a 120,000m drill program, of which 20,000m has been completed, returning high-grade hits like 107 g/t over 4m. Only 20% of the 5.5km property has been explored.
The company plans to build an on-site bulk sampling plant to produce saleable native gold and high-grade concentrates, generating cash flow to minimize dilution. Financing options include an innovative gold-backed preferred share structure.
In addition to gold, Granada has significant rare earth and alkaline metal potential that could be monetized through waste rock sales. However, the focus remains on proving up the gold resource and attracting a major to acquire the project.
Granada Gold Mines (TSXV:GGM) presents a compelling investment case as an undervalued gold developer with a clear path to production and significant exploration upside. The company’s flagship Granada Gold project in Quebec hosts a robust near-surface resource of 1 million ounces (0.5M oz indicated + 0.5M oz inferred) at an average grade of 2 g/t. However, bulk sampling has demonstrated the potential for much higher grades in the 4-5 g/t range for the open pit, and 9-10 g/t for the underground portion.
Fully Permitted and Shovel-Ready Attractive Takeover on Cadillac Break
A key advantage for Granada is that the project is fully permitted for production as a “shovel-ready” open-pit operation. In a jurisdiction where permitting can be complex and time-consuming, having the necessary approvals in hand significantly de-risks the project.
CEO Frank Basa emphasizes, “I think we’re the only site in Quebec and Ontario that have a permitted resource that’s a million ounces and shovel ready. On the Cadillac Break there’s very little rock that’s permitted. We’re fortunate we have the permits.”
Granada has strategically positioned itself as a prime takeover candidate. The project’s location on the renowned Cadillac Break, home to over 100M oz of historical gold production, makes it a highly attractive asset for acquirers.
Several major producers in the area, including Agnico Eagle and IAMGOLD, have processing infrastructure with dwindling ore reserves. Basa reveals, “We have already amended their permits so they can take our ore at any time… All the other mills are looking for feed.” This dynamic creates an opportunity for Granada to be acquired as a source of ore to feed these hungry mills.
Resource Expansion Potential
Granada has only explored 20% of its 5.5km land package, leaving ample room for resource growth. The company is currently undertaking a 120,000m drill program aimed at proving up higher grades and expanding the resource. Initial results have been promising, with highlight intercepts like 107 g/t gold over 4m.
Basa sees parallels to other major discoveries on the Cadillac Break: “Nobody believed in Osisko. It became a billion-dollar company.” He believes Granada has similar district-scale potential as exploration progresses.
To fund ongoing drilling and development while minimizing dilution, Granada has developed an innovative gold-backed preferred share structure. This gives investors exposure to in-situ gold at the cost of production.
Basa explains, “The potential is we can raise money through these preferred shares and minimize any dilution in our current shares.”
Granada Gold has several key milestones on the horizon that could serve as significant catalysts for the stock. One of the most anticipated events is the release of results from the ongoing 120,000-meter drill program. This drilling campaign is focused on proving the existence of higher grades and expanding the overall resource base. Positive drill results demonstrating improved grades and increased ounces could have a material impact on the project’s economics and attract the attention of potential acquirers.
Strategic Agreement to Advance Towards Production
Another major catalyst to watch for is the signing of a strategic agreement with a major mining company to advance the Granada project towards production. Given the project’s attractive location, fully permitted status, and significant resource base, it is well-positioned to be acquired by a larger player looking to secure a long-term ore supply. The announcement of a strategic partnership or outright acquisition would likely result in a significant re-rating of the stock.
Construction of On-Site Bulk Sampling Plant
The construction of the on-site bulk sampling plant also has the potential to be a key value driver. This plant will allow Granada to process material from the deposit and produce saleable gold and high-grade concentrates. The revenue generated from this bulk sampling program could help fund ongoing exploration and development activities while minimizing dilution for shareholders. It will also provide valuable data on metallurgy and recoveries to further optimize the project.
Continued Exploration to Demonstrate District-Scale Potential
Finally, continued exploration success could be a major catalyst as Granada looks to demonstrate the true district-scale potential of its land package. With only 20% of the 5.5-kilometer strike length explored to date, there is ample room for resource growth. Further discoveries and the delineation of new zones could significantly increase the overall value of the project and make it an even more compelling acquisition target. Investors should keep a close eye on exploration results and news flow related to the ongoing drilling and regional exploration programs.
Conclusion
In summary, Granada Gold offers investors a rare opportunity to gain leveraged exposure to a high-quality gold resource with a line-of-sight to production and significant exploration upside. The company’s strategic positioning as a shovel-ready takeover target in the heart of one of the world’s most prolific gold districts, backed by an innovative funding model and proven management team, makes it a compelling spec buy in the current market environment.
The Investment Thesis for Granada Gold Mines
Significantly undervalued at current market cap of ~$10M relative to peer comparables and project NPV
1M+ oz resource with clear potential to increase grade and scale
Fully permitted and shovel-ready in a top-tier mining jurisdiction
Strategic location on Cadillac Break makes it an attractive takeover target
Multiple nearby mills seeking ore feed in the near term
Innovative funding model to minimize dilution and generate cash flow
Proven management team with track record of value creation
Exposure to rising gold price environment
Macro Thematic Analysis – The Case for $3000 Gold
The investment thesis for Granada must be understood within the context of the broader macro environment and gold market outlook. Gold is traditionally viewed as a safe haven asset that performs well during periods of economic uncertainty, inflation, and currency debasement.
With global debt levels at record highs, central banks pursuing unprecedented quantitative easing programs, and rising geopolitical tensions, the stage appears set for a sustained bull market in gold. Many analysts are now calling for gold prices to reach $3,000 per ounce or higher in the coming years.
As Granada Gold CEO Frank Basa put it, “I think you might be coming into probably the craziest gold market in our lifetimes.”
In this environment, high-quality gold developers like Granada are well-positioned to outperform as they advance their projects toward
The published article and accompaning video interview 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. Granada Gold Mine does not undertake to update any forward-looking information in this news release or other communications unless required by law.
Article on Granada Gold: “Fully Permitted and Shovel Ready 1M Oz Gold Resource Project in Quebec”
