ROUYN NORANDA, QC, March 16, 2018 /CNW/ - Granada Gold Mine Inc.
(TSX-V: GGM) (OTCPK: GBBFF) (Frankfurt: B6D) (the "Company" or
"Granada") provides a corporate update and review of plans for 2018
on the 100% owned Granada Gold Property situated along the prolific
Cadillac Trend in Quebec, Canada.
Mr. Frank Basa, President and CEO
stated, "2017 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% unexplored."
Mr. Frank Basa, President and CEO
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 g/t gold
over 4 metres at 880 metres down hole (Press Release January, 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 4 and 6 grams per tonne.
- Revised 43-101Mineral 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% 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 g/t 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
@ 1.26 g/t gold at a cut-off of 0.39 g/t Au for
807,700 ounces M&I @ 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 3 bulk samples were reported to have been taken
in 1938 from a trench approximately 50 -150 metres east of the
Aukeko Shaft that averaged a grade of 7.0 ounces gold per ton
(240.0 grams per tonne) (from public files with MERN
(Ministère 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 2 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
2,500,000 units on a pro rata basis of Canada Cobalt Works. Each
unit comprised 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
September 15, 2017 at an exercise
price of $0.10 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 charity.
2018 Highlights and Targets
- Over-subscribed 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 2,500,000 units on a pro rata basis of Canada
Cobalt Works. Each unit comprised 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 September 15,
2018 at an exercise price of $0.10 per common share.
Claude Duplessis, P. Eng., 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 Inc. is developing the Granada Gold Property
near Rouyn-Noranda, Quebec. The
property includes the former Granada gold mine which produced more than
50,000 ounces of gold in the 1930's 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.
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 oz. Au) has been outlined along 600
meters 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 M&I at
1.16 g/t Au) representing a major increase in Block Model
estimates for Granada vs. 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.
Additional information is available at www.granadagoldmine.com.
"Frank J. Basa"
Frank J. Basa P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
SOURCE Granada Gold Mine Inc.