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Pre-concentration test results on low-grade mineralization at Granada Gold Mine return 6.0 grams per tonne gold

Drill Results

Pre-concentration test results on low-grade

mineralization at Granada Gold Mine return 6.0

grams per tonne gold

ROUYN-NORANDA, QC

,

March 18, 2019

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

Gold" "GGM" or the "Company") is pleased to report on the results of a preliminary gravity

separation study that demonstrates the positive impact of pre-concentrating lower-grade, gold-

bearing rock from its Granada Gold project in

Rouyn-Noranda, Quebec

.

The higher grades attained during the tests may have implications for the grade of future mill feed,

the size of the gold deposit, and the costs associated with future mine production.

Mr.

Frank Basa

, Chairman and CEO of Granada Gold, stated, "These metallurgical results can

further de-risk the project and provide additional processing options for the company, and they

potentially expand the existing resource by lowering the average gold grade that could be mined and

processed using pre-concentration by gravity separation."

The preliminary gravity test work, part of a suite of tests on rock samples from the Current

Resources at the Granada Gold Mine project, was conducted by industry leader Gekko Systems of

Ballarat,

Australia

. Their innovative pre-concentration system increases recovery values, reduces ore

mass and waste, reduces water use, lowers power requirements, and improves feed rates, all

potentially meaning lower capital and operating costs for

Granada

along with higher recovery rates.

To summarize results, a 260-kilogram sample of low-grade drill core assaying 0.6 grams of gold per

tonne was upgraded to 6.0 grams per tonne with a 60 percent overall recovery. The Gekko

laboratory processed the sample by crushing through different size fractions, homogenized, and split

according to standard lab practices. Gravity tests were conducted on coarse and fine fractions,

approximately +600 µm and -150 µm, respectively.

A grade of 21 grams per tonne gold was achieved from the coarse size fraction, with a recovery of

40%, resulting in an upgrade ratio (conc./feed) of 35. The test result which recovered the most gold

has a gravity concentrate grade of 6.0 grams per tonne gold with a gold recovery of 60 percent (see

Table 1 below).

Management of Granada Gold understand that conventional mining and processing leave behind

significant amounts of gold and other metals which could have potential economic value.

"As a result of this preliminary work, we believe that employing disruptive technologies on lower

grade ore to pre-concentrate the mineralized material for process plant feed can be advantageous,"

said Basa. "This approach can be used to evaluate the potential to increase the gold resource and

other recoverable metals which, in turn, will lower project capital and operating costs."

TABLE 1. Gekko Study Gravity Test Results

Sample

Conc.

Mass

Yield (%)

Au

Recovery

(%)

Ni

Recovery

(%)

S

Recovery

(%)

Cu

Recovery

(%)

Conc. Au

Grade

(ppm)

Upgrade

Ratio

(Conc/Feed)

Coarse Gravity Test, P100 1.18mm and P100 0.6µm

Coarse

1.1

39.1

6.6

41.9

5.1

21.3

35.5

Coarse

3.3

54.5

10.6

60.7

16.4

9.8

16.3

Coarse

5.9

59.7

13.3

65.8

18.9

6.0

10.0

Fine Gravity Test, P100 850, 425 and 150µm

Fine

1.3

33.0

3.3

34.4

5.1

14.6

24.3

Fine

3.1

47.0

6.8

54.4

10.7

8.8

14.7

Fine

4.9

51.0

8.4

58.7

13.7

6.0

10.0

In a related matter, the company has also begun a test program using the pilot plant of its sister

company, Canada Cobalt Works (TSXV: CCW). In this first round of tests, a 120-kilogram sample of

low-grade mineralized rock from the Granada Gold Mine waste dump was processed by screening

the material into three screen sizes followed by gravity separation. These concentrates were then

analyzed for gold, silver, cobalt, nickel, and copper (see Table 2 below).

TABLE 2. GGM Waste Rock Head Assay

Sample

Au (g/t)

Ag (g/t)

Co (ppm)

Ni (ppm)

Cu (ppm)

Coarse Head Assays, P100, 0.84mm, 0.84mm - 3.2mm, 3.2mm - 19mm

Coarse

1.01

0.6

34

84

134

Coarse

0.34

0.2

23

74

88

Coarse

1.54

1.8

42

0

86

The results are head assays of each screen class. Gravity assay test results are pending, with a

particular focus on recoverable base metals.

The current feasibility study for the onsite gold mine and plant at

Granada

has been put on hold

pending results of the metallurgical studies. The environmental studies to install a 600-tonne-per-day

gravity leach plant are ongoing at the Canada Cobalt Works Castle mine. The flowsheet has been

completed and equipment has been sourced.

Qualified Person

The technical information in this news release was prepared under the supervision of

Frank J. Basa

,

P.Eng., Granada Gold Mine's Chairman and Chief Executive Officer, who is a member of

Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-

101.

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. 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.

The Company is in possession of all permits required to commence the initial mining phase, known

as the "Rolling Start", which allows the company to mine up to 550 tonnes per day, capable of

producing up to 675,000 tonnes of ore over a 3-year period. 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.

View original content:

http://www.newswire.ca/en/releases/archive/March2019/18/c5245.html

%SEDAR: 00004087E

For further information:

Eric Owens, PGeo, President, 1-416-509-5385 or

[email protected], andWayne Cheveldayoff, Corporate Communications, 416-710-

2410 or [email protected]

CO: Granada Gold Mine Inc.

CNW 11:02e 18-MAR-19