Granada Gold plans to drill at Aukeko in spring, 2018

Mar 16, 2018

2018-03-16 09:18 ET – News Release

Mr. Frank Basa reports

GRANADA GOLD MINE CORPORATE UPDATE

Granada Gold Mine Inc. has provided a corporate update and review of plans for 2018 on the 100-per-cent-owned Granada Gold property situated along the prolific Cadillac Trend in Quebec, Canada.

Mr. Frank Basa, president and chief executive officer, stated: “Two thousand seventeen was a year of progress with key milestones achieved amidst an enhancement of the goals for the company, including a resource update, tighter share structure, financings and excellent drill results. The potential 5.5 km strike length of the high-grade gold vein structure identified at Granada remains 80-per-cent unexplored.”

Mr. Basa further stated, “The company will proceed in 2018 with a bankable feasibility study for a new mill at Granada Gold Mine with a production capacity of 80,000 to 100,000 ounces of gold per year.”

2017 highlights

Successful deep drill program intersected 14.5 grams per tonne gold over four metres at 880 metres downhole (press release Jan. 18, 2017). The drill results support the extension of gold mineralization 350 metres east of DUP-12-03A-W2 and 450 metres down dip from GR-11-257. Both of these holes, drilled in the 2009-2012 period, intersected the high-grade vein system.
Identified new, high-priority, untested area now referred to as the Genesis target that includes a large granite intrusion and intense shearing immediately south of the Cadillac fault (press release May 16, 2017).
A $21-million drill program developed to outline 10 to 15 million tonnes of higher-grade gold at grades between four and six grams per tonne.
Revised National Instrument 43-101 mineral resource estimation update (issue date June 30, 2017, with effective date of May 16, 2017, from GoldMinds Geoservices Inc.) featuring robust open pit and a high-grade underground gold resource at Granada representing a 200-per-cent increase over the original 2012 block model. The high-grade, underground maiden resource is located immediately north of near-surface deposit with 1.5 million ounces of gold averaging 4.56 grams per tonne gold inferred at a cut-off of 1.5 g/t Au. The open-pit constrained resources are 625,000 ounces measured at 1.14 g/t gold with 182,700 ounces indicated at 1.26 g/t gold at a cut-off of 0.39 g/t Au for 807,700 ounces measured and indicated at 1.16 g/t Au (press release May 16, 2017).
Permits for work at Aukeko were obtained in November, 2017. The Bert vein, within the Auk shear, is 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 seven ounces gold per ton (240 grams per tonne) (from public files with Ministere d’Energie et Ressources Naturelles).
Signed a provisional milling agreement with Canada Cobalt Works, to undertake the processing of 579,000 tonnes of ore at 4.24 g/t gold with the option for up to two million tonnes total of mineralized material from the Granada mine over three years.
Closed a non-brokered, flow-through private placement for gross proceeds of $700,000 and a $250,000 debt financing.
Paid out the second of four annual dividends to Granada shareholders with the distribution of 2.5 million units on a pro rata basis of Canada Cobalt Works. Each unit consisted of one common share in the capital of Canada Cobalt and one common share purchase warrant, with each warrant entitling the holder to acquire one common share of Canada Cobalt on or before Sept. 15, 2017, at an exercise price of 10 cents per common share.
Created “voluntary follow-up committee” to address all stakeholders around Granada Gold Mine.
Maintained a good relationship with local recreational clubs and provided trail maintenance on the property for recreational use.
Continued with the annual waste rock charity donation to a local children’s charity.

2018 highlights and targets

Oversubscribed private placement for a total of $2-million;
Planning a trenching and drill program at Aukeko spring, 2018;
Targeting deep drill program at the Genesis target;
Short list and select an engineering firm for the feasibility study to produce 80,000 to 100,000 ounces per year;
Third dividend distribution of Canada Cobalt Works units to Granada shareholders with the distribution of 2.5 million units on a pro rata basis of Canada Cobalt Works. Each unit consists of one common share in the capital of Canada Cobalt and one common share purchase warrant, with each warrant entitling the holder to acquire one common share of Canada Cobalt on or before Sept. 15, 2018, at an exercise price of 10 cents per common share.

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.

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 g/t Au at a cut-off grade of 1.5 g/t (1.5 million ounces Au) 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 g/t Au and 182,700 ounces indicated at 1.26 g/t Au with a cut-off grade of 0.39 g/t Au (807,700 ounces measured and indicated at 1.16 g/t Au) representing a major increase in Block model estimates for Granada versus 2012 Block model.

The company has obtained all necessary permits for the initial mining phase known as the rolling start for which stripping has already begun, and has been conducting exploration drilling in order to expand the reported mineral resource for the property.

About Granada Gold Mine Inc.

Granada Gold Mine is developing the Granada gold property near Rouyn-Noranda, Que. The property includes the former Granada gold mine, which produced more than 50,000 ounces of gold in the 1930s before a fire destroyed the surface buildings. The highly prolific Cadillac trend, which has been the source of more than 50 million ounces of gold produced in the past century, on a line running from Val d’Or to Rouyn-Noranda, cuts through the north part of the property.

We seek Safe Harbor.

https://granadagoldmine.com/en/news/2018/