ROUYN NORANDA, QC, March 1, 2019 /CNW/ - Granada Gold Mine (TSX.V:
GGM) ("Granada Gold" or "GGM" or the "Company") is pleased to
provide an update of its 2019 plans, activities aimed at
exploration and development as follow-up to the Company's recently
updated resource estimate at its Granada Gold project in
Rouyn-Noranda, Quebec.
On February 13, 2019, the Company
filed on Sedar a technical report compliant with National
Instrument 43-101 announcing an updated Pit-Constrained Resource
Estimate resource with 762,000 ounces of gold in the Measured and
Indicated categories, plus 455,000 ounces of gold in the Inferred
category.
The report entitled, "Granada Gold Project Mineral Resource
Estimate Rouyn-Noranda, Quebec,
Canada", was written by SGS Canada Inc., and provides
support for the following resource estimate:
Current Resources:
2019 Pit-Constrained Resource Estimate1
|
Category
|
Tonnes
|
Grade
(g/t Au)
|
Contained Gold
(oz.)
|
Measured
|
12,637,000
|
1.02
|
413,000
|
Indicated
|
9,630,000
|
1.13
|
349,000
|
M&I
Total
|
22,267,000
|
1.06
|
762,000
|
Inferred
|
6,930,000
|
2.04
|
455,000
|
1 Cutoff
0.4 g/t Au; see Press Release of February 13, 2019 for detailed
notes.
|
Frank J. Basa, P.Eng, Chairman
and CEO of Granada Gold Mine, stated, "These robust numbers confirm
our longstanding belief in the merits of this property, and they
form the backbone for our next efforts. We intend to see how we can
turn Granada into a bulk-tonnage
mine, and we believe the improving mining markets position us well
for this effort."
The authors of the report, Independent Qualified Persons Allan
Armitage, PhD, P.Geo, and Maxime Dupere,
BSc, P.Geo, conclude that there is "…significant potential
for delineation of additional Mineral Resources and that further
exploration is warranted."
GGM's next steps are to build on the above Current Resources.
The Company has begun activities which aim to add resources through
exploration drilling. Development activities will initially be
focused on the process of evaluating the economic and engineering
aspects of the Current Resources.
Exploration Activities
The Granada Shear Zone ("GSZ"),
located 1 km south of the prolific Cadillac Break shear zone, hosts
the Current Resources in and around the historic Granada Mine,
which saw some 51,000 ounces of gold produced in the 1930's. The
GSZ is an east-west trending fault zone that extends along the
length of the property and hosts other historical mine workings on
the property to the east (Aukeko and Austin
Rouyn).
Eric Owens, President of GGM,
stated, "Our next efforts to grow the deposit at Granada begin adjacent to the Current
Resources. There are also excellent targets elsewhere on the
property which we are eager to test. We hope to see you at our
booth (#2738) at the PDAC next week where we can provide greater
detail."
Plans are in place to begin the next phase of drilling, a
ready-to-drill 5,000 metre program. 75% of this program will focus
on a target area next to the Pit-Constrained Resources, with the
aim of expanding the resources at shallow depths (See figure
below). The target area has not been adequately drilled, but
scattered drill holes have intersected encouraging results such as
10.0 m grading 2.01 g/t gold and
28.5 m grading 0.51 g/t gold.
The remaining drill program consists of 3 holes planned to test
the North Zone ("Genesis"), about 750
m north of the Granada Shear zone. The holes will follow-up
the first ever hole drilled in this zone, #GR-18-04, in late
2018, which intersected 5.45 g/t Au over 4 metres, including 45.7
g/t Au over 1.0 metre (See Press Release January 8, 2019).
Future drill programs will see drill tests of recent strong
results from deeper holes below the Pit-Constrained Resources: 8.39
g/t Au over 6 meters in hole GR-18-03 and 8.15 g/t Au over 3 meters
in hole GR-18-01 (See Press Release January
8, 2019). Planning is also underway for in-fill drilling
later in the year to convert Inferred Resources to Indicated
Resources in the current Pit-Constrained Resources.
The Company plans to initiate a summertime geologic mapping and
geophysics program as well, aimed at finding other gold targets on
the property, and to better understand the geologic framework of
the deposit.
Development Activities
GGM is seeking to evaluate the
economics of a long-term, bulk tonnage mine based on the Current
Resources presented in the table above. Proposals are currently
being reviewed for the purpose of completing Preliminary Economic
Assessment ("PEA") and Pre-Feasibility ("PFS") studies, based on an
open-pit mining model. It is anticipated that the PEA will take 4
months to complete, once the go-ahead is given. The PFS is
anticipated to take an additional 6-12 months, requiring the
upgrade of Inferred Resources to Indicated Resources via infill
drilling.
Separately, the Company also holds a mining license, which
permits a 550 tonne per day ("tpd") mining operation, based on a
smaller starter pit model (The "Rolling Start" – See Press Release
May 6, 2014). Management is reviewing
its options in regard to this permit.
To find out more about GGM's activities, please see us in
booth 2738 at the PDAC March 3-7,
2019.
Qualified Persons
Allan
Armitage, PhD, P.Geo, of SGS Canada Inc. is the independent
Qualified Person in accordance with National Instrument 43-101 with
regard to the Current Resources, and has reviewed the pertinent
passages in this news release. Merouane
Rachidi P. Geo., Ph.D., and Claude
Duplessis, P. Eng., of GoldMinds Geoservices Inc., are
Qualified Persons in accordance with National Instrument 43-101
with respect to the overall project activities, and have reviewed
and approved the contents of this news release.
About Granada Gold Mine Inc.
Granada Gold Mine Inc. is
a junior Canadian gold exploration company with a significant gold
asset, the Granada gold project,
located in the world-class mining district of Rouyn-Noranda, Quebec. The project is located
adjacent to the prolific Cadillac Break, a 300 km long fault zone
from which more than 120 million ounces of gold have been produced
over the last century. The Company continues to make progress as it
aims to take this project down the path toward mining.
Additional information is available at
www.granadagoldmine.com.
"Frank J. Basa"
Frank J. Basa P. Eng.
Chief Executive Officer and Chairman
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.