ROUYN NORANDA, QC, July 10, 2018 /CNW/ - Granada Gold Mine (TSXV:
GGM) ("Granada Gold" or the "Company") announces that it has
completed its trenching program at Aukeko property, immediately
adjacent to its flagship gold property, the Granada Gold Mine, in
the province of Quebec,
Canada.
The company is very happy to announce its exploration team has
completed the third trench, totaling 85 metres in length with an
average width of approximately 1.5 metres located 150m to the east and south of the previous 2
trenches reported June 4, 2018. This
trench extends the total trenching program to 365 metres. Channel
sampling with a rock saw in all 3 trenches have been completed by
Technominex of Rouyn-Noranda under
the supervision of GoldMinds Geoservices. The distribution of
trench samples was affected by the topography of the terrain and
the presence of water. A total of 208 trench samples (including
blank and standards) have been sent to ALS laboratory in
Rouyn-Noranda for analysis by fire
assay. Results will be disclosed once received, validated and
interpreted.
"Again, we are very excited to expand the exploration of our
extended LONG Bars zone on strike going east to test the remainder
of the unexplored mineralized structures," stated Frank J. Basa P.Eng., President and Chief
Executive Officer of Granada Gold Mine. "These are highly
prospective areas for production – our major focus."
About Aukeko
The Aukeko mine saw historical exploration in the late 1930s,
when 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-to-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) 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
has been undertaken to date, including historical drilling from the
1990s. A further 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 short 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 cross-cutting intrusive dykes 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.
Note: The Qualified person has verified the data disclosed in
the historical literature. The contemplated exploration
program announced in this press release is a first technical field
work to verify the historical information disclosed in the
historical literature. The grades and length are not verified
and the program aims at validating these results. Vegetation
has grown on these sites since the 1930's and 1950's and no witness
core or sample is available.
Qualified Persons
Merouane Rachidi, P.Geo., Ph.D.,
and Claude Bisaillon, Eng., of GoldMinds Geoservices Inc., a
geological, environmental and mining consultant, are independent
qualified persons in accordance with National Instrument 43-101,
and have 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 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.
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
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 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.
The Company has signed a provisional milling agreement with
Canada Cobalt Works (TSX-V: CCW) to process an initial
600,000-to-2,000,000 tonnes of mineralized material at a grade of
4.5 g/t Au. Canada Cobalt Works has retained the engineering firm
Wood Group to undertake the necessary studies to obtain the
required permits to install a 600-tonne-per-day mill at the Castle
mine site in Gowganda,
Ontario.
As well, Granada Gold has selected Ausenco Limited to commence a
feasibility study for the development of a producing mine with a
capacity of 80,000-to-100,000 ounces of gold per year at its
100-percent-owned Granada
property, located in Quebec in the
town of Rouyn-Noranda.
"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.