GGM.V · 2021-06-28 12:00:00

Granada Gold Pre-Concentration Test Work Shows Potential to Increase In-Situ Historical Resource Estimate and Gold Grade

Metallurgy & Processing

Granada Gold Pre-Concentration Test Work

Shows Potential to Increase In-Situ Historical

Resource Estimate and Gold Grade

ROUYN NORANDA, QC

June 28, 2021

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

GBBFF) (Frankfurt: B6D) (the "Company" or "Granada") is pleased to announce positive pre-

concentration test work performed at Gekko in

Australia

on low-grade, mineralized waste material

from the 500- tonne bulk sample recently taken from the Granada Gold Mine deposit.

Preliminary results indicate that pre-concentration prior to milling has the potential to increase the

gold grade by 251 percent with a 47.4 percent gold recovery for the low-grade mineralized waste

material.

In addition, the testing showed the calculated head grade of the

Granada

sample to be 36.4 percent

higher than the assayed grade, which, if applied to

Granada's

historical in-situ mineral resource,

would result in a corresponding significant increase in resources.

"The test work was performed in

Australia

where it is an accepted practice to pre-concentrate low-

grade ores on a commercial plant scale prior to milling. At the two operational plants visited in

Australia

, the upgrading of low-grade ore before milling and leaching had the result of lowering

capital requirements for the construction of the processing facilities and in turn, reducing the

processing cost per ounce," said

Frank J. Basa

, P.Eng., President and CEO.

"The test work we performed at Gekko is very encouraging because it highlights two important

characteristics of the Granada Deposit. First, it indicates the potential for pre-concentration to

improve the economics of the

Granada

deposit through the upgrading of lower-grade mineralized

waste material that would not otherwise be milled or included in resource estimates. The

concentrate produced by the testing had an average grade of 1.16 g/t gold, which was more than

three times higher than the 0.33 g/t assayed grade of the test sample. The type of lower-grade

material we tested is currently not included in

Granada's

historical in-situ mineral resource estimate

where the cut-off grades are 0.4 g/t gold.

"Second, the test work showed that the calculated head grade of the sample (0.45 g/t Au) was 36.4

percent higher than the assayed head grade (0.33 g/t Au). This is because the assayed grade often

does not capture the native gold component occurring in the

Granada

deposit which has a content of

up to 50 percent native gold. This test result confirms

Granada

historical mining operational data

obtained from past gold production and indicates that the

Granada

in-situ historical mineralized

resource has the potential to increase the amount of resource ounces." Mr. Basa stated.

Pre-concentration Test Results Highlights:

The combined test results from three gravity concentration processes carried out on a low-grade

sample indicate that the Granada Gold sample is amenable to pre-concentration via the Gekko IPJ

(InLine Pressure Jig). The concentrate produced by the three combined tests had an average grade

of 1.16 g/t gold, which was 251 percent higher than the 0.33 g/t assayed grade of the test sample.

The concentrate amount was 18.2 percent of the sample size but with 47.1 percent recovery of the

gold.

Test work was carried out on a 100 kg sample of Granada Gold waste mineralized material to

determine amenability of the sample to pre-concentration via the Gekko InLine Pressure Jig.

Amenability was determined through three gravity concentration processes. (1) DMS (dense media

separation) Viking testing (45.6 percent of the gold could be recovered into 24.8 percent of the test

feed mass. Given an assayed test feed grade of 0.45 g/t gold, the corresponding concentrated

grade equated to 1.30 g/t gold, giving a gold grade increase in value of 290 percent). (2) DMS

Cyclone testing (69.9 percent of the gold could be recovered into 23.0 percent of the test feed

mass. Given a test feed grade of 0.22 g/t gold, the corresponding concentrate grade equated to

0.78 g/t gold, giving a gold grade increase in value of 350 percent), and (3)

Single Stage gravity

table recovered 64.9 percent of the gold into 15.5 percent of the sample mass.

Given a test

feed grade of 0.79 g/t Au, the corresponding concentrate grade equated to 3.29 g/t gold, giving a

gold grade increase in value of 420 percent). Recoveries achieved through the DMS and tabling test

work are directly scalable to recoveries expected from a plant scale InLine Pressure Jig.

Potential Increase in Historical In-Situ Mineral Resource Estimate

The

Granada

in-situ historical mineralized resource has the potential to be upgraded to a higher

grade and contain an increased amount of resource ounces based on the 36.4 percent difference

between assayed grade (0.33 g/t Au) and calculated grade (0.45 g/t Au) recorded in the testing.

The table below shows the potential increase in gold ounces if this 36.4 percent difference were to

be applied to the in-situ historical mineralized resource.

Comparison of Potential Ounces of Gold between Assayed and Calculated Grades

Type