Granada Gold Mine Corporate Update
Granada Gold Mine Corporate Update
ROUYN NORANDA, QC
,
March 16, 2018
/CNW/ - Granada Gold Mine Inc. (TSX-V: GGM) (OTCPK: GBBFF) (Frankfurt: B6D) (the
"Company" or "Granada") provides a corporate update and review of plans for 2018 on the 100% owned Granada Gold Property situated along
the prolific
Cadillac Trend
in
Quebec, Canada
.
Mr.
Frank Basa
, President and CEO stated, "2017 was a year of progress with key milestones achieved amidst an enhancement of the goals for
the Company, including a resource update, tighter share structure, financings and excellent drill results. The potential 5.5 km strike length of the
high-grade gold vein structure identified at
Granada
remains 80% unexplored."
Mr.
Frank Basa
, President and CEO further stated, "the company will proceed in 2018 with a bankable Feasibility Study for a new mill at
Granada Gold Mine with a production capacity of 80,000 to 100,000 ounces of gold per year."
2017 Highlights
Successful deep drill program intersected
14.5 g/t gold
over 4 metres at 880 metres down hole (Press Release January, 18, 2017). The
drill results support the extension of gold mineralization 350 metres east of DUP-12-03A-W2 and 450 metres down dip from GR-11-257.
Both of these holes, drilled in the 2009-2012 period, intersected the high-grade vein system.
Identified new, high-priority, untested area now referred to as the "Genesis Target" that includes a large granite intrusion and intense shearing
immediately south of the Cadillac fault (Press Release,
May 16, 2017
).
A
$21 Million
drill program developed to outline 10 to 15 million tonnes of higher-grade gold at grades between 4 and 6 grams per tonne.
Revised 43-101Mineral Resource Estimation Update (Issue date
June 30, 2017
with effective date of
May 16, 2017
, from GoldMinds
Geoservices Inc.) featuring robust open pit and a high-grade underground gold resource at
Granada
representing a 200% increase over the
original 2012 block model. The high-grade, underground maiden resource is located immediately north of near-surface deposit with
1.5
million
ounces of gold averaging
4.56
g/t gold Inferred at a cut-off of 1.5 g/t Au. The open-pit constrained resources are
625,000
ounces
Measured at
1.14
g/t gold with
182,700
ounces Indicated @
1.26
g/t gold at a cut-off of 0.39 g/t Au for
807,700
ounces M&I @
1.16
g/t
Au (Press Release
May 16
, 2017).
Permits for work at Aukeko were obtained in
November 2017
. The Bert Vein, within the Auk Shear is where 3 bulk samples were
reported to have been taken in 1938 from a trench approximately 50 -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).
Signed a provisional milling agreement with Canada Cobalt Works, to undertake the processing of 579,000 tonnes of ore at 4.24 g/t gold
with the option for up to 2 million tonnes total of mineralized material from the
Granada
mine over three years.
Closed a non-brokered, flow-through private placement for gross proceeds of
$700,000
and a
$250,000
debt financing.
Paid out the second of four annual dividends to
Granada
shareholders with the distribution of 2,500,000 units on a pro rata basis of Canada
Cobalt Works. Each unit comprised one common share in the capital of Canada Cobalt and one common share purchase warrant, with
each warrant entitling the holder to acquire one common share of Canada Cobalt on or before
September 15, 2017
at an exercise price of
$0.10
per common share.
Created "Voluntary Follow Up Committee" to address all stakeholders around Granada Gold Mine.
Maintained a good relationship with local recreational clubs and provided trail maintenance on the property for recreational use.
Continued with the annual waste rock charity donation to a local children charity.
2018 Highlights and Targets
Over-subscribed private placement for a total of
$2 million
Planning a trenching and drill program at Aukeko spring 2018
Targeting deep drill program at the Genesis Target.
Short list and select an engineering firm for the Feasibility Study to produce 80,000 to 100,000 ounces per year.
Third dividend distribution of Canada Cobalt Works units to
Granada
shareholders with the distribution of 2,500,000 units on a pro rata
basis of Canada Cobalt Works. Each unit comprised one common share in the capital of Canada Cobalt and one common share purchase
warrant, with each warrant entitling the holder to acquire one common share of Canada Cobalt on or before
September 15, 2018
at an
exercise price of
$0.10
per common share.
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 1930's 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
meters 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
.
"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.
View original content: http://www.newswire.ca/en/releases/archive/March2018/16/c2458.html
%SEDAR: 00004087E
For further information:
Frank J. Basa, P. Eng., President and CEO at 1-819-797-4144 orWayne Cheveldayoff, Investor Relations, at 416-
710-2410 or [email protected]
CO: Granada Gold Mine Inc.
CNW 07:30e 16-MAR-18