GGM.V · 2018-12-12 12:00:00

Granada Gold receives updated pit- constrained Mineral Resources at Granada

Corporate Updates

Granada Gold receives updated pit-

constrained Mineral Resources at Granada

ROUYN NORANDA, QC

Dec. 12, 2018

/CNW/ - Granada Gold Mine (TSXV: GGM) ("Granada

Gold" or the "Company") is pleased to announce that the Company has received an updated Mineral

Resource Estimate by SGS Canada for its 100%-owned Granada Gold Property near

Rouyn-

Noranda, Quebec

The updated mineral resource calculation is accompanied by a revised Block Model for the entire

area drilled at

Granada

as of the end of the 2017 drilling program.

Highlights

Pit constrained mineral resources:

464,000

ounces Measured @

1.13

g/t Au and

349,000

ounces Indicated @

1.13

g/t Au at

a cut-off grade of 0.40 g/t Au (

813,000

ounces M&I @

1.13

g/t Au);

455,000

ounces Inferred @

2.04

g/t Au

Granada

is fully permitted for initial mining of open-pit resources based on a 2014 Pre-Feasibility

Study, and mineralized material has been stockpiled on site.

Granada Pit Constrained Resources

Measured pit constrained mineral resources in the LONG Bars Zone are 12.8 million tonnes grading

1.13 g/t Au for total contained gold of

464,000

ounces. Indicated pit constrained mineral resources

are 9.63 million tonnes grading 1.13 g/t Au for total gold ounces of

349,000, Measured+Indicated

total 22.

432 Mt

@ 1.13 g/t Au for 813,000 ounces.

Inferred pit constrained resources are 6.93

million tonnes grading 2.04 g/t Au for total gold ounces of

455,000

Category

Tonnes

Grade (g/t Au)

Contained Au (oz)

Measured

12,802,000

1.13

464,000

Indicated

9,630,000

1.13

349,000

Measured & Indicated

22,432,000

1.13

813,000

Inferred

6,930,000

2.04

455,000

(1)

CIM (2014) definitions were followed for Mineral Resources

(2)

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

(3)

All figures are rounded to reflect the relative accuracy of the estimate. Composites have been capped where appropriate

(4)

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%

(5)

A fixed specific gravity value of 2.78 g/cm

was used to estimate the tonnage from block model volumes

(6)

The results from the pit optimization are used solely for the purpose of testing the "reasonable prospects for economic

extraction" by an open pit and do not represent an attempt to estimate mineral reserves. There are no mineral

reserves on the Property. The results are used as a guide to assist in the preparation of a mineral resource statement

and to select an appropriate resource reporting cut-off grade

(7)

Whittle™ Pit Optimization Parameters

Parameter

Value

Unit

Gold Price

$1300

US$ per ounce

Exchange Rate

0.76

Assumed Mining and Processing Costs

Pit Slope

Degrees

Mining Cost

$2.20

US$ per tonne mined

Processing Cost (incl. crushing)

$12.00

US$ per tonne milled

General and Administrative

$2.50

US$ tonne of feed

Assumed Metal Recoveries

Gold Recovery

Percent (%)

Mining loss / Dilution

5 / 5

Percent (%) / Percent (%)

Cautionary Statement

The historical production of 51,476 ounces of gold (181,744 sT @ 0.28 oz/sT Au) from 1930 to 1935

are included in the current resource statement as there is no digital information for exactly where the

historical production was completed and if the historical production was completed in the area

covering the current resource estimate. The historical production cannot be verified by SGS.

Notes to Mineral Resource Table

Original assays have been capped at 32.5 g/t for calculation of the

1.5 m

composites for the

estimation of mineral resources.

The density to convert volume to tonnage is 2.7 g/cm

Gold recoveries are 95% for the full mill cyanidation of the whole mineralized material.

Assumes gold price of

$1,300

U.S/oz and exchange rate of

.76US/

Can.

The pit constrained resources were modeled on 5mE x 5mN x 5mZ block size.

Block model extends to a depth of

120m

from surface.

Search ellipsoid estimation using ID2 grade interpolation for both Measured, Indicated and

Inferred are:

30m

7.5m

60m

15m

and

100m

15m

respectively.

Search ellipse orientation dipping north10 at 47 degrees.

Classification: Minimum of 8 composites from 3 holes for Measured, Minimum of 8 composites

from 3 holes for Indicated and minimum of 5 composites from 3 holes for Inferred using the

above mention search ellipsoid dimensions.

The database used for this mineral resource estimate includes drill results obtained from drill

programs in 2009, 2010, 2011, 2012, 2016, 2017, trenches from 2014 and 2015 plus many of

the historic holes (1990's) where sufficiently long sections of the drill core had been sampled

and analyzed.

The mineral resource statement includes the historical production of 51,476 ounces of gold

(181,744 sT @ 0.28 oz/sT Au) from 1930 to 1935since there is no digital information for exactly

where the historical production was completed and if the historical production was completed in

the area covering the current mineral resource estimate.

SGS is not aware of any known environmental, permitting, legal, title-related, taxation, socio-

political, marketing or other relevant issues that could materially affect the mineral resource

estimate.

Granada Deposit at Various Gold Cut-off Grades

Pit Constrained

(1)

Measured

Indicated

Inferred

Cut-off

Au g/t

Tonnes

(g/t)

Contained

Au (oz)

Tonnes

(g/t)

Contained

Au (oz)

Tonnes

(g/t)

Contained

Au (oz)

0.3

16,664,000

0.95

507,000

13,114,000

0.92

388,000

9,075,000

1.64

479,000

0.4

12,802,000

1.13

464,000

9,630,000

1.13

349,000

6,930,000

2.04

455,000

0.5

10,226,000

1.30

427,000

7,482,000

1.32

318,000

5,576,000

2.43

436,000

0.6

8,383,000

1.46

395,000

6,025,000

1.51

293,000

4,672,000

2.80

420,000

0.7

7,009,000

1.62

366,000

4,985,000

1.69

271,000

3,984,000

3.17

406,000

1.0

4,387,000

2.10

296,000

3,067,000

2.23

220,000

2,862,000

4.08

376,000

(1)

Pit constrained mineral resources are reported at a base case cut-off grade of 0.4 g/t Au within a conceptual pit shell.

Values in this table reported above and below the base case cut-off grade should not be misconstrued with a Mineral

Resource Statement. The values are only presented to show the sensitivity of the block model estimates to the selection

of cut-off grade. All values are rounded to reflect the relative accuracy of the estimate and numbers may not add due to

rounding

(2)

All figures are rounded to reflect the relative accuracy of the estimate. Composites have been capped where appropriate

The National Instrument 43-101 Technical Report including the updated mineral resources for

Granada

contained in this news release is currently being completed by SGS and will be delivered

and filed on SEDAR by GGM in the coming days.

Qualified Persons

Allan Armitage Ph.D, P.Geo, and

Daniel Leroux

, M.Sc., P.Geo, géo. acted on behalf of SGS with

respect to the updated mineral resource estimate at

Granada

, and are experts in their fields. Dr.

Armitage has over 25 years in the mining and metals sector with a focus on exploration, resource

estimation and assessment of a wide variety of commodities, with a particular emphasis on gold,

base metals and uranium in

Canada

. He is a Member of the Association of Professional

Geoscientists of

Ontario

(APGO).

Daniel Leroux Eng

., is the Global Business Manager and Senior

Geologist for SGS Geostat with more than 25 years of experience in the mining and metals sector

with a focus on exploration, resource estimation and assessment of a wide variety of commodities,

with a particular emphasis on gold, base metals and diamonds worldwide. Mr. Leroux is a Member

of the Ordre des Géologues du Québec (OGQ), Association of Professional Geoscientists of

Ontario

(APGO) and the Association of Professional Engineers and Geoscientists of

Saskatchewan

(APEGS).

All scientific and technical data contained in this press release has been approved and verified by

Allan Armitage

and

Daniel Leroux

, each of whom is a "qualified person" and are independent of the

Issuer as defined in NI 43-101.

Claude Duplessis

, P. Eng., of Goldminds Geoservices Inc., a geological, environmental and mining

consultant, 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. (formerly Gold Bullion Development Corp.) 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 cuts through the north part of the property. The Cadillac

Trend 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

Rouyn-Noranda

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/December2018/12/c5722.html

%SEDAR: 00004087E

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 12-DEC-18

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