ROUYN NORANDA, QC, Dec. 12, 2018 /CNW/ - Granada Gold Mine (TSXV:
GGM) ("Granada Gold" or the "Company") is pleased to announce
that the Company has received an updated Mineral Resource Estimate
by SGS Canada for its 100%-owned Granada Gold Property near
Rouyn-Noranda, Quebec.
The updated mineral resource calculation is accompanied by a
revised Block Model for the entire area drilled at Granada as of the end of the 2017 drilling
program.
Highlights:
- Pit constrained mineral resources:
-
- 464,000 ounces Measured @ 1.13 g/t Au and
349,000 ounces Indicated @ 1.13 g/t Au at a cut-off
grade of 0.40 g/t Au (813,000 ounces M&I @ 1.13
g/t Au);
- 455,000 ounces Inferred @ 2.04 g/t
Au
Granada is fully permitted for
initial mining of open-pit resources based on a 2014
Pre-Feasibility Study, and mineralized material has been stockpiled
on site.
Granada Pit Constrained Resources
Measured pit constrained mineral resources in the LONG Bars Zone
are 12.8 million tonnes grading 1.13 g/t Au for total contained
gold of 464,000 ounces. Indicated pit constrained
mineral resources are 9.63 million tonnes grading 1.13 g/t Au for
total gold ounces of 349,000, Measured+Indicated total
22.432 Mt @ 1.13 g/t Au for 813,000
ounces. Inferred pit constrained resources are 6.93 million
tonnes grading 2.04 g/t Au for total gold ounces of
455,000.
Category
|
Tonnes
|
Grade (g/t
Au)
|
Contained Au
(oz)
|
Measured
|
12,802,000
|
1.13
|
464,000
|
Indicated
|
9,630,000
|
1.13
|
349,000
|
Measured &
Indicated
|
22,432,000
|
1.13
|
813,000
|
Inferred
|
6,930,000
|
2.04
|
455,000
|
|
|
(1)
|
CIM (2014)
definitions were followed for Mineral Resources
|
|
|
(2)
|
Mineral resources
which are not mineral reserves do not have demonstrated economic
viability. An Inferred Mineral
Resource has a lower level of confidence than that applying to a
Measured and Indicated Mineral Resource and must
not be converted to a Mineral Reserve. It is reasonably expected
that the majority of Inferred Mineral Resources could
be upgraded to Indicated Mineral Resources with continued
exploration
|
|
|
(3)
|
All figures are
rounded to reflect the relative accuracy of the estimate.
Composites have been capped where appropriate
|
|
|
(4)
|
Pit constrained
mineral resources are reported at a cut-off grade of 0.4 g/t Au
within a conceptual pit shell. Cut-off
grades are based on a gold price of US$1,300 per ounce, a foreign
exchange rate of US$0.76, and a gold recovery of
95%
|
|
|
(5)
|
A fixed specific
gravity value of 2.78 g/cm3 was used to estimate the
tonnage from block model volumes
|
|
|
(6)
|
The results from
the pit optimization are used solely for the purpose of testing the
"reasonable prospects for economic
extraction" by an open pit and do not represent an attempt to
estimate mineral reserves. There are no mineral
reserves on the Property. The results are used as a guide to assist
in the preparation of a mineral resource statement
and to select an appropriate resource reporting cut-off
grade
|
|
|
(7)
|
Whittle™ Pit
Optimization Parameters
|
Parameter
|
Value
|
Unit
|
Gold
Price
|
$1300
|
US$ per
ounce
|
Exchange
Rate
|
0.76
|
|
Assumed Mining and
Processing Costs
|
|
Pit
Slope
|
50
|
Degrees
|
Mining
Cost
|
$2.20
|
US$ per tonne
mined
|
Processing Cost
(incl. crushing)
|
$12.00
|
US$ per tonne
milled
|
General and
Administrative
|
$2.50
|
US$ tonne of
feed
|
Assumed Metal
Recoveries
|
|
Gold
Recovery
|
95
|
Percent
(%)
|
Mining loss /
Dilution
|
5 / 5
|
Percent (%) / Percent
(%)
|
Cautionary Statement
The historical production of 51,476 ounces of gold (181,744 sT @
0.28 oz/sT Au) from 1930 to 1935 are included in the current
resource statement as there is no digital information for exactly
where the historical production was completed and if the historical
production was completed in the area covering the current resource
estimate. The historical production cannot be verified by SGS.
Notes to Mineral Resource Table
- Original assays have been capped at 32.5 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
g/cm3.
- Gold recoveries are 95% for the full mill cyanidation of the
whole mineralized material.
- Assumes gold price of $1,300
U.S/oz and exchange rate of $0.76US/$1 Can.
- The pit constrained resources were modeled on 5mE x 5mN x 5mZ
block size.
- Block model extends to a depth of 120m from surface.
- Search ellipsoid estimation using ID2 grade interpolation for
both Measured, Indicated and Inferred are: 30m x 30m x
7.5m, 60m x 60m x
15m and 100m x 100m x
15m respectively. Search ellipse
orientation dipping north10 at 47 degrees.
- Classification: Minimum of 8 composites from 3 holes for
Measured, Minimum of 8 composites from 3 holes for Indicated and
minimum of 5 composites from 3 holes for Inferred using the above
mention search ellipsoid dimensions.
- The database used for this mineral resource estimate includes
drill results obtained from drill programs in 2009, 2010, 2011,
2012, 2016, 2017, trenches from 2014 and 2015 plus many of the
historic holes (1990's) where sufficiently long sections of the
drill core had been sampled and analyzed.
- The mineral resource statement includes the historical
production of 51,476 ounces of gold (181,744 sT @ 0.28 oz/sT Au)
from 1930 to 1935since there is no digital information for exactly
where the historical production was completed and if the historical
production was completed in the area covering the current mineral
resource estimate.
- SGS 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.
Granada Deposit at Various Gold Cut-off Grades
Pit
Constrained(1)
|
|
Measured
|
Indicated
|
Inferred
|
Cut-off
Au g/t
|
Tonnes
|
Au
(g/t)
|
Contained
Au (oz)
|
Tonnes
|
Au
(g/t)
|
Contained
Au (oz)
|
Tonnes
|
Au
(g/t)
|
Contained
Au (oz)
|
0.3
|
16,664,000
|
0.95
|
507,000
|
13,114,000
|
0.92
|
388,000
|
9,075,000
|
1.64
|
479,000
|
0.4
|
12,802,000
|
1.13
|
464,000
|
9,630,000
|
1.13
|
349,000
|
6,930,000
|
2.04
|
455,000
|
0.5
|
10,226,000
|
1.30
|
427,000
|
7,482,000
|
1.32
|
318,000
|
5,576,000
|
2.43
|
436,000
|
0.6
|
8,383,000
|
1.46
|
395,000
|
6,025,000
|
1.51
|
293,000
|
4,672,000
|
2.80
|
420,000
|
0.7
|
7,009,000
|
1.62
|
366,000
|
4,985,000
|
1.69
|
271,000
|
3,984,000
|
3.17
|
406,000
|
1.0
|
4,387,000
|
2.10
|
296,000
|
3,067,000
|
2.23
|
220,000
|
2,862,000
|
4.08
|
376,000
|
|
|
(1)
|
Pit constrained
mineral resources are reported at a base case cut-off grade of 0.4
g/t Au within a conceptual pit shell.
Values in this table reported above and below the base case cut-off
grade should not be misconstrued with a Mineral
Resource Statement. The values are only presented to show the
sensitivity of the block model estimates to the selection
of cut-off grade. All values are rounded to reflect the relative
accuracy of the estimate and numbers may not add due to
rounding
|
(2)
|
All figures are
rounded to reflect the relative accuracy of the estimate.
Composites have been capped where appropriate
|
The National Instrument 43-101 Technical Report including the
updated mineral resources for Granada contained in this news release is
currently being completed by SGS and will be delivered and filed on
SEDAR by GGM in the coming days.
Qualified Persons
Allan Armitage Ph.D, P.Geo, and Daniel
Leroux, M.Sc., P.Geo, géo. acted on behalf of SGS with
respect to the updated mineral resource estimate at Granada, and are experts in their fields. Dr.
Armitage has over 25 years in the mining and metals sector with a
focus on exploration, resource estimation and assessment of a wide
variety of commodities, with a particular emphasis on gold, base
metals and uranium in Canada. He
is a Member of the Association of Professional Geoscientists of
Ontario (APGO). Daniel Leroux Eng., is the Global Business
Manager and Senior Geologist for SGS Geostat with more than 25
years of experience in the mining and metals sector with a focus on
exploration, resource estimation and assessment of a wide variety
of commodities, with a particular emphasis on gold, base metals and
diamonds worldwide. Mr. Leroux is a Member of the Ordre des
Géologues du Québec (OGQ), Association of Professional
Geoscientists of Ontario (APGO)
and the Association of Professional Engineers and Geoscientists of
Saskatchewan (APEGS).
All scientific and technical data contained in this press
release has been approved and verified by Allan Armitage and Daniel Leroux, each of whom is a "qualified
person" and are independent of the Issuer as defined in NI
43-101.
Claude Duplessis, P. Eng., of
Goldminds Geoservices Inc., a geological, environmental and mining
consultant, 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. (formerly Gold Bullion Development Corp.)
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 cuts through the north part of the property. The Cadillac
Trend 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.
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.