ROUYN-NORANDA, QC, March 28, 2017 /CNW/ - Granada Gold Mine Inc.
(TSX-V: GGM) (OTC: GBBFF) (Frankfurt: B6D) (the "Company" or
"Granada") is pleased to report that Company management and
geological consultants met last week at the Granada Property and
two other proposed mill processing sites in nearby northern
Ontario with officials from DRA
Americas Inc., a subsidiary of DRA Global, pursuant to the Letter
of Intent recently entered into between the Company and DRA (see
March 6, 2017, news
release).
The selection of a site for a planned 1,200 tonne-per-day
processing mill to go along with a planned 12,000 tonne-per-day
(500 tonne-per-hour) pre-concentration ore sorting facility at the
Granada mine, designed by DRA to
maximize annual gold production beyond what was envisioned in the
June 2014 Prefeasibility Study for
Granada, will be made during the
upcoming quarter concurrent with a final technical and financial
proposal DRA will deliver to Granada Gold.
DRA will outline terms of a potential turnkey BOOT (build, own,
operate, transfer) funding solution for Granada as well as other financial options,
similar to arrangements DRA and clients have carried out
successfully elsewhere around the globe. DRA is active on 5
continents and has a 30-year track record of delivering innovative
mining solutions on time and within budget.
The near-term proposal from DRA would be followed by an updated
Granada Prefeasibility Study as the technical feasibility and
economic viability of this new scenario has not yet been
established.
Pre-concentration, ideally suited for Granada mineralization, can substantially
reduce overall costs as it allows downstream processing to be
undertaken on a richer stream of material.
Strategic Options For Mineral Processing Plant
The two northern Ontario
brownfield sites under consideration for the planned 1,200
tonne-per-day mineral processing plant are in Gowganda and Temagami.
Both sites hosted past producing mines and feature excellent
infrastructure as well as local First Nations support for
development.
Significantly, the broader area is experiencing a major
acceleration of interest in the exploration and extraction of
cobalt as well as gold and silver. Establishing a new processing
plant in this mining friendly district, still within easy access to
the Granada deposit, may therefore
allow Granada Gold to capture robust regional synergies. The
Company also owns a 50% interest in the Golden Corridor section of
Castle Silver Resources' 33 sq. km Castle Property hosting its
flagship Silver-Cobalt Project.
Updated Granada Resource Estimate Expected Early In
Q2
As a result of new discoveries made at Granada since fresh drilling began late last
year, a new resource estimate for the LONG Bars Zone including the
Granada "Deep" high-grade area is scheduled to be released by the
end of April. The estimate is being prepared by the Company's
geological consultants at Goldmines Geoservices and will be
supported by a full technical report in accordance with NI-43-101
that will supersede the 2014 PFS technical report. Data from
historical holes not previously used will be incorporated into the
new resource model and estimate.
More results are pending from the recently completed drilling
which is showing continuity of the high-grade gold vein system
north of the existing pits while near-surface drilling on the
western side of the property has confirmed a new mineralization
model associated with intrusive dikes similar to the Canadian
Malartic mine as well as the Barry and Windfall models.
Qualified Person
Frank J. Basa, P. Eng., President
and Chief Executive Officer of Granada, is a 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.