Granada High-Grade Gravity Plant Design for Onsite Processing
2875 Ave Granada
Rouyn Noranda, Québec J9Y 1Y1
Tel : 819-797-4144 / Fax: 819-792-2306
Granada High-Grade Gravity Plant Design for Onsite Processing
Rouyn Noranda, Q.C., October 15, 2024 - Granada Gold Mine Inc. (TSXV: GGM) (OTC: GBBFF) (Frankfurt:
B6D) (the "Company" or "Granada") announces a comprehensive strategy to increase shareholder value
through improved processing technology by using a high-grade gravity circuit onsite before milling,
resource optimization, and a novel financing approach originally detailed in the June 6, 2023 news release
regarding the preferred share structure . This integrated plan positions Granada as an efficient gold
producer in the Abitibi Gold Belt.
High-Grade Potential Confirmed
Recent bulk sampling has yielded impressive results, with two 500-tonne surface samples producing 4.33
and 3.95 grams per tonne gold, respectively. These figures exceed the current combined open pit and
underground resource grade of 2.05 grams per tonne, indicating potential for resource expansion and
enhanced project economics. A notable grab sample yielded a calculated gold grade of 45.6 g/t from 1,220
kilograms, taken from a 3-meter strike length near the first bulk sample.
The current open pit and underground resource stands at 543,000 ounces in the Measured and Indicated
category. Historical open-pit mining in the area produced 3.5 to 5.0 g/t gold from surface mining, further
supporting the high-grade potential of the property. (Source: Yann Camus, P.Eng., and Maxime Dupéré,
B.Sc., géo., “NI 43-101 Technical Report on the Granada Gold Project, Mineral Resource Estimate
Update, Rouyn-Noranda, Quebec, Canada,” SGS Canada Inc., for Granada Gold Mine Inc., effective date
December 15, 2020. Published on SEDAR.)
Introducing the High-Grade Gravity Plant
To capitalize on these encouraging results, Granada is advancing plans for a High-Grade Gravity Plant. This
facility is designed to efficiently process higher-grade material and generate near-term cash flow. Key
features include:
• Collaboration with FLSmidth, a global engineering firm, to develop an advanced process flowsheet.
Historical gravity test data will inform the design process.
• A design throughput of 550 tonnes per day, utilizing a closed-loop water process with no chemicals or
discharge, aligning with environmental sustainability goals.
• Production of three valuable outputs: high-grade native gold concentrate, sulfide gold gravity
concentrate, and coarse-grained sand for aggregate sales.
Frank J. Basa, President and CEO, commented, "Our strategy combines technological advancements with
financial innovation to create value for our shareholders. The High-Grade Gravity Plant is central to our
efforts to optimize gold extraction and overall profitability."
Maximizing Resource Value
Granada's strategy extends beyond primary gold production. As reported in the July 23, 2024 news
release, the Company has identified significant potential value in its waste rock. Calculations show a
combined in-ground value of CAD $499.30 for every 9 tonnes of material mined: CAD $211.30 for one
tonne of gold-mineralized material and CAD $288.00 for 8 tonnes of waste rock. This approach to utilizing
all mined material enhances project economics and supports sustainability goals.
Exploration Potential
With only 20% of the 2-kilometer drilled extent within the overall 5.5-kilometer strike length explored to
date, Granada sees significant potential for resource expansion. The ongoing 120,000-meter drill program,
aof which 30,000 meters have been completed, is designed to systematically evaluate this potential.
A Preliminary Economic Assessment (PEA) will be undertaken when the gold resource reaches 2 million
ounces in the Measured and Indicated categories, providing investors with a clear view of the project's
economic potential.
Qualified person
The technical information in this news release was reviewed and approved by Matthew Halliday, P.Geo.,
Director of Granada Gold Mine Inc., and member of the Ordre des Géologues du Québec, who is a
Qualified Person in accordance with National Instrument 43-101.
Mineral Resource Estimate
On August 22, 2022 the Company filed an updated NI 43-101 technical report supporting the resource
estimate update for the Granada Gold project (Please see July 6, 2022 news release ) reporting that the
Granada deposit contains an updated mineral resource, at a base case cut-off grade of 0.55 g/t Au for pit
constrained mineral resources within a conceptual pit shell and at a base case cut-off grade of 2.5 g/t for
underground mineral resources within reasonably mineable volumes, of 543,000 ounces of gold
(8,220,000 tonnes at an average grade of 2.05 g/t Au) in the Measured and Indicated category, and
456,000 ounces of gold (3,010,000 tonnes at an average grade of 4.71 g/t Au) in the Inferred category.
Please see Table 1 below for full details. Report reference: Granada Gold Project Mineral Resource
Estimate Update, Rouyn-Noranda, Quebec, Canada authored by Yann Camus, P.Eng. and Maxime
Dupéré, B.Sc, P.Geo., SGS Canada Inc. dated August 20th, 2022 and with an effective date of June 23rd,
2022.
Table 1: Mineral Resource Estimate Showing Tonnes, Average Grade, and Gold Ounces
Cut-Off
(g/t Au) Classification Type Tonnes Au (g/t) Gold Ounces
0.55 / 2.5 Measured1 InPit+UG 4,900,000 1.70 269,000
Indicated InPit+UG 3,320,000 2.57 274,000
Measured & Indicated InPit+UG 8,220,000 2.05 543,000
Inferred InPit+UG 3,010,000 4.71 456,000
About Granada Gold Mine Inc.
Granada Gold Mine Inc. continues to develop and explore its 100% owned Granada Gold Property near
Rouyn-Noranda, Quebec, and is adjacent to the prolific Cadillac Break. The Company owns 14.73 square
kilometers of land in a combination of mining leases and claims. The Company is currently undergoing a
large drill program with 20,000m out of 120,000m complete. The drills are currently paused to provide
the technical team with the necessary time to evaluate, assimilate existing data and wait for improved
market conditions.
The Granada Shear Zone and the South Shear Zone contain, based on historical detailed mapping as well
as from current and historical drilling, up to twenty-two mineralized structures trending east-west over
five and a half kilometers. Three of these structures were mined historically from four shafts and three
open pits. Historical underground grades were 8 to 10 grams per tonne gold from two shafts down to 236
m and 498 m with open pit grades from 3.5 to 5 grams per tonne gold.
The property includes the former Granada Gold underground mine which produced more than 50,000
ounces of gold at 10 grams per tonne gold in the 1930’s from two shafts before a fire destroyed the surface
buildings. In the 1990s, Granada Resources extracted a bulk sample (Pit #1) of 87,311 tonnes grading 5.17
g/t Au. They also extracted a bulk sample (Pit # 2) of 22,095 tonnes grading 3.46 g/t Au.
For further information, Contact:
Frank J. Basa, P.Eng. member of Professional Engineers Ontario
Chief Executive Officer
P: 416-625-2342
Or:
Wayne Cheveldayoff,
Corporate Communications
P: 416-710-2410
Neither the TSX Venture Exchange nor its Regulation Services 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 which include, but are not limited to, comments that involve future
events and conditions, which are subject to various risks and uncertainties. Except for statements of historical
facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt
and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking
statements are not guarantees of future performance and actual results may vary materially from those
statements. General business conditions are factors that could cause actual results to vary materially from
forward-looking statements. The Company does not undertake to update any forward-looking information in
this news release or other communications unless required by law.