Granada Gold Mine Starts Drilling at Granada and Announces Financing
Granada Gold Mine Starts Drilling at Granada
and Announces Financing
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:
1
.
Begin drilling mag targets defined by drone-borne magnetic survey covering the extended LONG
Bars zone
2
.
Extend underground gold mineralization towards the Cadillac trend to the north
3
.
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.
Figure 1: Location map of the drill program underlain by the Drone Airborne survey at Granada
(CNW Group/Granada Gold Mine Inc.)
"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.
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For further information:
Frank J. Basa, P. Eng., President and CEO at 1-819-797-4144 or Wayne
Cheveldayoff, Corporate Communications, at 416-710-2410 or [email protected]
CO: Granada Gold Mine Inc.
CNW 07:30e 09-OCT-18