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Granada Gold Mine to Begin Bulk Sample Program of High-Grade Mineralized Structures at Surface

Drill Results Metallurgy & Processing

Granada Gold Mine to Begin Bulk Sample

Program of High-Grade Mineralized Structures

at Surface

ROUYN NORANDA, QC

,

Jan. 14, 2020

/CNW/ - Granada Gold Mine Inc. (TSXV: GGM) (the

"Company" or "Granada") will begin a bulk sampling program this spring on the high-grade,

mineralized structures exposed at surface. The program will be designed to evaluate the native gold

component in the mineralized structures. A metallurgical program was undertaken in 2012 at SGS

Lakefield Gold Metallurgical Testing Group,

Ontario

, and the study concluded that, based on 29

composite samples, the native gold component ranged from 29.6% to 78%, with an average of

54.0% which can be recovered by simple gravity means (NI 43-101 PEA,

February 4, 2013

,

effective date

December 21, 2012

).

Highlights:

A bulk sample of a minimum of 50 tonnes to maximum of 500 tonnes is proposed at this stage

from Veins 1 and 2.

A minimum of 6 holes will be drilled by percussion drilling followed by thermal fragmentation to

increase the sample size

The holes will be drilled to a depth of 5 to 12 meters

The recovered samples will be sent to Temiskaming Testing Laboratories,

Cobalt, Ontario

for

processing

Frank J. Basa

, P.Eng., Granada Gold's President and Chief Executive Officer, comments: "The

current, ongoing drill program will be followed by these mini bulk samples to get a better

understanding of the native gold component. Using a percussion drill followed by thermal

fragmentation will minimizes dilution of the bulk sample".

"If the Company's recently reported drill hole GR-19-A would be taken within the calculation

parameters of the proposed bulk sampling program, the 15-meter interval from surface grades

21.71 g/t gold. Cutting the high-grade assay intercepts to 60 g/t would result in a potential grade

target undiluted of 10.86 g/t gold. These grades are well within historical production and bulk

sample results outlined below",

Frank J. Basa

, P.Eng., comments further.

Historical Production and Bulk Samples*:

Granada Gold Mines (1930's company) between 1930 to 1935 extracted 164,816 tonnes of

mineralized material grading 9.7 g/t gold and 1.5 g/t silver before the mill burnt down. The

mineralized material came primarily from Vein 2 underground.

Granada Resources, in 1994, extracted a bulk sample of 87,311 tonnes from surface grading 5.17

g/t gold from Vein 1. This bulk sample generated 139,856 tonnes of waste rock.

Granada Resources, in 1996 extracted a bulk sample of 22,095 tonnes from surface grading 3.46

g/t gold from Vein 2. This bulk sample generated 4,309 tonnes of waste rock.

*The above disclosure of the bulk sample size and grade is extracted from the 43-101 Technical

Report dated

February 13, 2019

on the Granada Gold Project Mineral Resource Estimate,

Rouyn

Noranda, Quebec

authored by the Qualified persons,

Allan Armitage

, Ph. D.., P.

Geo and Maxime

Dupere

, B.SC., Geo both of SGS Canada Inc. The Company has no reason to doubt it's reliability.

Qualified person

The technical information in this news release has been reviewed by

Claude Duplessis

, P.Eng.,

GoldMinds Geoservices Inc. member of Québec Order of Engineers and a qualified person in

accordance with National Instrument 43-101 standards.

Quality Control and Reporting Protocols

All NQ core assays reported were obtained by either 1-kilogram screen fire assay or standard 50-

gram fire-assaying-AA (Atomic Absorption) finish or gravimetric finish at (i) ALS Laboratories in

Val

d'Or

, Québec,

Thunder Bay, Ontario

,

Sudbury, Ontario

or

Vancouver, British Columbia

. The screen

assay method is selected by the geologist when samples contain visible gold. All samples are also

analyzed for multi-elements, using an Aqua Regia-ICP-AES method at ALS Laboratories. The drill

program, Quality Assurance/Quality Control ("QA/QC") and interpretation of results is performed by

qualified persons employing a QA/QC program consistent with NI 43-101 and industry best

practices. Standards and blanks are included with every 12 samples for QA/QC purposes for this

program in addition to the lab QA/QC.

About Granada Gold Mine Inc.

Granada Gold Mine Inc. continues to develop the Granada Gold Property near

Rouyn-Noranda,

Quebec

. Approximately 120,000 meters of drilling has been completed to date on the property,

focused mainly on the extended LONG Bars zone which trends 2 kilometers east-west over a

potential 5.5 kilometers of mineralized structure. Only 20 percent of the property to date has been

explored. The highly prolific Cadillac Break, the source of more than 75 million plus ounces of gold

production in the past century, cuts through the north part of the

Granada

property.

Pit-Constrained Mineral Resources at

Granada

disclosed on

February 13

th

, 2019 Press Release

prepared by SGS independent QP stand at:

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

Measured & Indicated

22,267,000

1.06

762,000

Inferred

6,930,000

2.04

455,000

(43- 101 Technical Report dated February 13, 2019 on the Granada Gold Project Mineral Resource Estimate, Rouyn Noranda, Quebec)

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.

+ 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%.

The Company is in possession of all mining permits that are required to commence the initial mining

phase, known as the "Rolling Start", which allows the company to mine up to 550 tonnes per day.

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 statemen

SOURCE

Granada Gold Mine Inc.

View original content:

http://www.newswire.ca/en/releases/archive/January2020/14/c0238.html

%SEDAR: 00022378E

For further information:

please contact: 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 14-JAN-20