Granada Gold Provides Exploration Update for 2019
Granada Gold Provides Exploration Update for
2019
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 Estimate
1
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.
Longitudinal Section of the Pit-Constrained Resource Blocks, Looking South, showing location of the
Drill Target Area and selective results of past drill hole intersections (CNW Group/Granada Gold
Mine Inc.)
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.
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%SEDAR: 00004087E
For further information:
Eric Owens, PGeo, President, at 1-416-509-5385; or Wayne
Cheveldayoff, Corporate Communications, at 416-710-2410 or [email protected]
CO: Granada Gold Mine Inc.
CNW 09:00e 01-MAR-19