ROUYN NORANDA, QC, Oct. 9, 2018 /CNW/ - Granada Gold Mine
(TSX.V: GGM) ("Granada Gold" or the "Company") announces that it
has started its autumn drill program at the Genesis Project at
Granada. Program objectives are:
- Begin drilling mag targets defined by drone-borne magnetic
survey covering the extended LONG Bars zone
- Extend underground gold mineralization towards the Cadillac
trend to the north
- Test for silver and base metals in the core
This program is designed to enhance its flagship gold property
by continuing to explore the remaining 80 percent of unexplored 5.5
kilometer east-west mineralized structure, the Granada Gold Mine,
in the province of Quebec,
Canada.
"Again, we are very excited to expand the exploration of our
gold deposit at Granada," 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."
The company has applied to extend the permits to carry on with
the exploration program at Aukeko.
The Company also announces a non-brokered private placement
offering of 2,942,140 units ("Units") at a price of $0.15 per Unit for gross proceeds of up to
$441,321. Each Unit is comprised
of one common share of the Company and one share purchase warrant.
Each whole warrant will entitle the holder thereof to purchase one
additional common share of the Company at an exercise price of
$0.18 per share, for a period of
three years from closing, subject to TSX Venture Exchange
("Exchange") approval.
The proceeds of the Private Placement will be used for surface
exploration, trenching, and historical resampling of drill core on
the Company's Granada Gold Property in Québec and for general
working capital purposes.
All securities issued in connection with the private placement
are subject to a four month and a day hold period in accordance
with applicable Securities Laws.
Qualified Person
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 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.