ROUYN NORANDA, QC, Aug. 23, 2018 /CNW/ - Granada Gold Mine (TSXV:
GGM) ("Granada Gold" or the "Company") announces the assay results
of the exploratory trenching program at Aukeko property immediately
adjacent to the Granada Gold Mine, in the province of Quebec, Canada.
- Visible gold and 8.49 grams per tonne over 0.5 metres in trench
2, located at around 20m NNW from the
Aukeko shaft
- Located historical shaft and adit
- Completed 140 kilometres of drone-based MAG survey at a spacing
of 50 and locally, 25 metres
The company is excited to start the second trenching program
composed of three trenches (trench 4, 5 and 6) totaling 190 metres
to identify the extension of the mineralized structures and
prospecting new structures with gold mineralization. In addition,
low lying areas that were not sampled in trenches 1, 2, and 3 will
be completed by the fourth quarter 2018.
Quality Control / Quality Assurance (QA/QC)
The trench samples were analyzed by ALS laboratory in
Rouyn Noranda, Québec. Samples
were crushed to have 70% passing 10 Mesh (2mm) and afterward riffle
split to have 500 grams which is pulverized to 85% passing 75
microns. The Aliquots of 50g were assayed by Fire-assay. Samples
with high grade of gold (more than 5 g/t Au) were re-assayed using
screened metallic fire assay.
Sampling program design, Quality Assurance/Quality Control
("QA/QC") and interpretation of results is performed by qualified
person employing a QA/QC program consistent with NI 43-101 and
industry best practices. Standards and blanks are included with
every 10 samples and the lab results are in line with expected
results and allow public disclosure of the results.
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 QP has verified the existing
documentation (historical reports, government files) moreover field
investigations was carried out and the old shaft as well as the old
adit entrance have been identified during the site visit. 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 aim 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 Person
Merouane Rachidi, P.Geo., Ph.D.,
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 (Presse release
dated May16, 2017; ).
The mineral resources that are not mineral reserves do not have
demonstrated economic viability.
Notes to Mineral Resource
Original assays have been capped at 60 g/t for calculation of
the 1.5 m composites for the
estimation of mineral resources.
The density to convert volume to tonnage is 2.7.
Drill hole spacing varies from 6 meters up to 225 meters while
most of the drill holes are on 30 m
cross sections for the upper 400
m.
Gold recoveries are 94.1% for the full mill cyanidation of the
whole mineralized material.
Assumes gold price of $1,250
U.S/oz and exchange rate of $1.37
CDN/$1 U.S.
The open-pit constrained resources were modeled on 10mE x 5mN x
5mZ block size while underground resources below elevation -135
meters were modeled on 10mE x 3mNx 3Mz. The block models are within
an envelope.
Search ellipsoid estimation ID2 are: 50x50x5, 100x100x10,
200x200x15 and 300x300x20 to enable connection of the structure of
the deep holes to the highly drilled package. Saucers dipping north
at 47 degrees.
Classification: a minimum of 4 holes with 2 composites per hole
for Measured, 3 holes with minimum of 2 composites per hole for
Indicated, the remaining Inferred.
The database used for this estimate includes drill results
obtained from drill programs in 2009, 2010, 2011, 2012, 2016 and
2017, trenches of 2014 and 2015 plus many of the historic holes
(1990's) where sufficiently long sections of the core had been
analyzed.
The statement includes the historical production of 51,476
ounces (181,744 sT @ 0.28 oz/sT) from 1930 to 1935. They cannot be
physically removed in 3D. However, this amount is now considered to
be included in the Measured mineral resources.
GoldMinds is not aware of any known environmental, permitting,
legal, title-related, taxation, socio-political, marketing or other
relevant issues that could materially affect the mineral resource
estimate.
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.