Rouyn Noranda, QC - 18 April 2018 - Granada Gold Mine (TSX.V: GGM) (“Granada Gold” or the “Company”) announces that it is preparing a trenching and drilling program at its Aukeko property, immediately adjacent to its flagship gold property, the Granada Gold Mine, in the province of Quebec, Canada. As well, it has filed an intervention permit for drilling on public land at Austin Rouyn. The Company is targeting starting field work in May - weather permitting.
At AUKEKO, the company will begin with precisely delineated areas of trenching and diamond drilling. The permit has been granted for trenching and 6,000 metres of drilling. Granada Gold has made the required financial deposit and hired an agronomist to supervise the work in that sector, as requested in the permit of the CPTAQ (the agricultural lands protection initiative of the province of Quebec). First Nations agreements are in place, and the exploration works are to be realized in collaboration as part of the mutual benefit agreement.
The Company also announces the filing of a request for an intervention permit and drilling at another zone further east, the historic Austin Rouyn zone. The drilling is to take place on public land once permits are received. A small excavator and a diamond drill are now at Granada waiting to move as soon as conditions allow.
The Aukeko and Austin Rouyn sectors are historical gold producers with important gold values to the East within the company extension of the LONG Bars zone.
"We are very excited to expand the exploration of our extended LONG Bars zone on strike going east to test the remainder of the unexplored mineralized structures," stated Frank J. Basa P.Eng., President and Chief Executive Officer of Granada Gold Mine. “These are highly prospective areas for production - our major focus.”
The Aukeko mine saw historical exploration in the late 1930s, when a shaft was sunk to 13 metres and extensive trenching was undertaken on surface. Considerable detailed mapping at that time identified several auriferous structures within a 500-metre wide, east-west trending zone with shearing, alteration, and quartz veining along with numerous porphyry intrusions. Of significance is the “Auk Shear” zone where the Aukeko Shaft was sunk in conjunction with stripping and trenching in the same vicinity. This zone was mapped over a one-kilometre length with an average width of 50 metres. The Auk Shear zone was the location of the Bert Vein where three bulk samples were reported to have been taken in 1938 from a trench approximately 50-to-150 metres east of the Aukeko Shaft that averaged a grade of 7.0 ounces gold per ton (240.0 grams per tonne) (from public files with MERN (Ministère d’Energie et Ressources Naturelles) GM52851).
The Aukeko gold mine is part of the east-west trending structure on the Granada Gold Mine property. It is two kilometres east from the extended LONG Bars zone where over 120,000 metres of drilling has been undertaken to date, including historical drilling from the 1990s. A further 1.9 kilometres east is the Austin-Rouyn Mine. The potential strike length on the property is 5.5 kilometres, beginning at the westernmost drill hole near the historical Granada shafts and extending eastward to the historical Austin Rouyn shaft where grab samples in 1940 showed up to 6.57 ounces of gold per short ton (225.2 grams per tonne). Grab samples are selected samples and are not necessarily representative of the mineralization hosted on the property. Note that there are two cross-cutting intrusive dykes of undefined width within that strike length. The potential strike length is conceptual in nature as there has been insufficient exploration to define the full length of the mineralized material and it is uncertain if further exploration will do so.
About the Austin Rouyn (from MERN database - fiche de gite)
Outcropping deposit discovered in 1933 by traditional prospection and trenching. Vein type associated with shear of about 270 metres long with thickness of 0.3-to-2.4 metres. The main Austin vein, N280/48, is 300 metres long by 3 metres thick. Historical information indicates potential extension of 600 metres to the west and 500 metres to the east, which needs to be verified, Mineralized veins are made of white and blue/grey quartz cross-cut by ankerite veins near contact with conglomerates of the Pontiac group. Chalcopyrite and arsenopyrite are abundant in the vein contacts and disseminated. As well, pyrite and native gold are observed in trace in the veins. The historical gold grades present 4.2-to-113.49 g/t Au over length of 1.2-to-2.7 metres (1946-1957) and 276 g/t Au on the first level of the shaft (1939-1940) by Pal Rouyn Mines Ltée and Regent Gold.
Note: The Qualified person has verified the data disclosed in the historical literature. The contemplated exploration program announced in this press release is a first technical field work to verify the historical information disclosed in the historical literature. The grades and length are not verified and the program aim at validating these results. Vegetation has grown on these sites since the 1930’s and 1950’s and no witness core or sample is available.
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.
About Granada Gold Mine Inc.
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, which 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 to Rouyn-Noranda, cuts through the north part of the property.
An updated Mineral Resource Estimate and revised Block Model dated June 30, 2017, with 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.
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 metres of strike, north of the original near-surface discovery at Granada. Open-pit-constrained resources have 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 (807,700 ounces M&I at 1.16 g/t Au) representing a major increase in Block Model estimates for Granada vs. 2012 Block Model.
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.
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. 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.
As well, Granada Gold 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.
“Frank J. Basa”
Frank J. Basa P. Eng.
President and Chief Executive Officer
For further information, please contact:
Frank J. Basa, P. Eng., President and CEO at 1-819-797-4144 or
Wayne Cheveldayoff, Investor Relations, at 416-710-2410 or firstname.lastname@example.org
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.