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March 2, 2023 – Granada Gold Mine Inc. (TSXV: GGM) (the “Company” or “Granada”) announced today that it has retracted its published inferred Rubidium resource for the Granada Gold Project, located near Rouyn-Noranda, Quebec.
Following a review by the British Columbia Securities Commission (BCSC), it was found that the published inferred Rubidium resource estimate did not comply with National Instrument 43-101 ("NI 43-101") standards, and therefore cannot be relied upon. Granada takes its obligations to provide accurate and transparent disclosure very seriously and regrets any confusion or inconvenience caused by this retraction.
The following summarizes the reasons for the retraction:
- The estimation of resource was based on a single hole.
- The estimation of resource did not include all the required information and disclosures required by NI 43-101.
- The estimation of resource did not provide enough details about the assumptions and parameters used in the estimation.
- The estimation of resource was not supported by a sufficient amount of geological data to meet NI 43-101 standards.
Granada is committed to upholding the highest standards of disclosure and transparency and will work diligently to rectify this situation. The Company will ensure that all future estimates of mineral resources are based on sufficient geological data and comply with all NI 43-101 requirements.
Granada's CEO, Frank J. Basa, B.Eng., P.Eng., commented, "We apologize for any inconvenience this may have caused and we are taking immediate steps to address the error. We remain committed to the responsible development of the Granada Mine Gold Project and will continue to update our shareholders and stakeholders as appropriate."
About Granada Gold Mine Inc.
Granada Gold Mine Inc. continues to develop and explore its 100% owned Granada Gold Property near Rouyn-Noranda, Quebec which 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 30,000m out of 120,000m complete. The drills are currently paused to provide the technical team with the necessary time to evaluate and assimilate existing data.
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.
Mineral Resource Estimate
On August 20, 2022 the Company released 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, 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 Onces |
| 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 |
- The 1930-1935 production was removed from these numbers (164,816 tonnes at 9.7 g/t Au / 51,400 ounces Au).
- The Independent QP for this resources statement is Yann Camus, P.Eng., SGS Canada Inc.
- The effective date is June 23rd, 2022.
- CIM (2014) definitions were followed for Mineral Resources.
- 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.
- No economic evaluation of the resources has been produced.
- All figures are rounded to reflect the relative accuracy of the estimate. Totals may not add due to rounding
- Composites have been capped where appropriate. The 2.5 m composites were capped at 21 g/t Au in the thin rich veins and at 7 g/t Au in the low-grade volumes.
- Cut-off grades are based on a gold price of US$1,700 per ounce, a foreign exchange rate of US$0.78 for CA$1, a processing gold recovery of 93%.
- Pit constrained mineral resources are reported at a cut-off grade of 0.55 g/t Au within a conceptual pit shell
- Underground mineral resources are reported at a cut-off grade of 2.5 g/t Au within reasonably mineable volumes.
- A fixed specific gravity value of 2.78 g/cm3 was used to estimate the tonnage from block model volumes
- There are no mineral reserves on the Property.
- The deepest resources reported are at a depth of 990 m.
- 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.
- 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.
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.
“Frank J. Basa”
Frank J. Basa, P. Eng.
President & Chief Executive Officer
For further information, Contact:
Frank J. Basa, P.Eng.
President & Chief Executive Officer
P: 416-625-2342
Or:
Wayne Cheveldayoff,
Corporate Communications
P: 416-710-2410
E: waynecheveldayoff@gmail.com
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.
