ROUYN NORANDA, QC, April 6, 2018 /CNW/ - Granada Gold Mine (TSX.V: GGM) ("Granada Gold" or the "Company") is pleased to announce that its Board of Directors has selected Ausenco Limited to commence a feasibility study for the development of a producing mine with a capacity of 80,000-to-100,000 ounces of gold per year at its 100-percent-owned Granada property, located in Quebec in the town of Rouyn-Noranda.
The study will focus on the pit-constrained resource of 807,700 ounces M&I at 1.16 g/t Au, comprising 625,000 ounces Measured at 1.14 g/t Au and 182,700 ounces Indicated at 1.26 g/t Au with a cut-off grade of 0.39 g/t Au. The company has undertaken and completed all the required environmental studies and obtained the required permits to be a producer under its original "Rolling Start" program.
In the meantime, the Company has signed a provisional milling agreement with Canada Cobalt Works (TSX-V: CCW) to process an initial 600,000-to-2,000,000 tonnes of mineralized material at a grade of 4.5 g/t Au. Granada Gold Mines completed a Pre-Feasibility Study (PFS) in 2014 with mineral reserves identified. The company also realized a mineral resources update in June 2017. Canada Cobalt Works has retained the engineering firm Wood Group to undertake the necessary studies to obtain the required permits to install a 600-tonne-per-day mill at the Castle mine site in Gowganda, Ontario to process the identified mineral reserves of the 2014 PFS.
These activities are intended also to provide a ramp to production for the Company's high-grade, underground maiden resource, located immediately north of a near-surface deposit, showing 1.5 million ounces of gold averaging 4.56 g/t gold Inferred at a cut-off of 1.5 g/t Au., according to a 43-101 Mineral Resource Estimation Update (issue date June 30, 2017, with effective date of May 16, 2017, from GoldMinds Geoservices Inc.).
"Ausenco has a reputation for innovation and efficiency, and in fact sponsored PDAC's #disruptmining event this year along with Goldcorp, they also successfully assist Atlantic Gold Corporation in their similar project in Eastern Canada " said Frank J. Baša, Granada's President and CEO. "We are anticipating that their fresh approach will help us move at a good pace to move us forward in our focus on production."
About Granada Gold Mine Inc. – Focused on Production
Granada Gold Mine Inc. 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 1930s before a fire destroyed the surface buildings. The highly prolific Cadillac Trend, a line running from Val-d'Or to Rouyn-Noranda, has been the source of more than 50 million ounces of gold in the past century, and cuts through the north part of the property.
An updated Mineral Resource Estimate and revised Block Model dated June 30, 2017, with an effective date of May 16, 2017, includes the first material estimate of high-grade gold resources discovered in zones at depth immediately north of the LONG Bars Zone open-pit deposit.
In addition to the open-pit constrained resource mentioned above, an initial Inferred underground resource of 10,386,500 tonnes grading 4.56 g/t Au at a cut-off grade of 1.5 g/t (1.5 million oz. Au) has been outlined along 600 meters of strike, north of the original near-surface discovery at Granada.
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 resources.
Claude Duplessis, P. Eng., of Goldminds Geoservices Inc., a geological, environmental and mining consultant, is an independent qualified person in accordance with National Instrument 43-101, and has reviewed and approved the contents of this news release.
Frank J. Baša, P.Eng.
Granada Gold Mine Inc. - TSX-V:GGM
Canada Cobalt Works Inc. - TSX-V:CCW