The Granada Gold Property, located 5 km south of the historic mining community of Rouyn-Noranda, Quebec, was first acquired by Granada Gold in 2006. Less than a decade later, Granada is on the verge of a planned first stage of production - a high-grade “rolling start”.
Granada Gold undertook a surface bulk sample and recovered 40.43 kg (1,304.33 troy oz) of fine gold from the mineralized zone within the No. 2 vein structure. The Company processed the mill feed at the on-site mill at the Granada Gold Mine in Granada, Quebec, during the first and second quarters of 2007. The Company mined 139,471.39 dry metric tonnes, of which 29,948.49 dry metric tonnes were processed as mill feed.
The company’s first-ever drill program at Granada commenced in late 2009 and resulted in an early discovery (hole GR-17) of mineralization in a previously undrilled area more than 500 meters east-northeast of past producing Pit #1.
Drilling intensified at Granada following the eastern extension discovery, and by the end of 2012 Granada Gold had defined a significant resource in what’s known as the LONG Bars Zone:
Granada Gold Deposit Mineral Resource 2012 Estimate(1)
Mineral resources confirmed by ~90,000 metres of drilling
CUT-OFF 0.4 G/T
Note: Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
(1) Source: NI 43-101 Technical Report Granada Gold Project Resource estimate update Rouyn-Noranda, Abitibi, Quebec, published January 3, 2013 with effective date of November 15, 2012. Claude Duplessis, Eng. and Gilbert Rousseau, Eng. are the independent qualified persons in accordance with National Instrument 43-101.
With only 20% of the LONG Bars Zone systematically explored to date, excellent near-term opportunities exist for the company to upgrade both the quality and the size of the resource. In tandem with the rolling start, additional drilling and trenching is being planned for 2017. Of special interest is the historic Aukeko area located 2 km east of the initial production pit. The average grade of the three bulk samples taken from this area in 1938 was reported as 7.00 oz. Au/st (239.9 g/t) (Willoughby, 1994)
A Preliminary Feasibility Study released June 19, 2014, revealed robust economics for the high-grade rolling start based on a gold price of $1,400 CDN, a Canadian dollar at 90 cents U.S. and fuel costs of $1.30 per liter.
Granada (Phase I) 3-Year High-Grade “Rolling Start” - PFS Base Case Highlights *
NPV (6% Discount)
NPV (6% Discount)
Estimated Gold Price
Estimated Exchange Rate
US$1 = C$1.11
Estimated Fuel Cost
*All figures in Canadian dollars except where specified. Source: 43-101 Technical Report Prefeasibility Study (PFS) Phase I - Open Pit Granada Gold Project Rouyn-Noranda, Québec, published June 19, 2014, effective date May 6, 2014. Claude Duplessis, Eng. Gilbert Rousseau, Eng. Jonathan Gagné, Eng. Martin Stapinsky, P.Geo.,M.Sc.,Ph.D, are the independent qualified persons in accordance with National Instrument 43-101.
Source: 43-101 Technical Report Prefeasibility Study (PFS) Phase I - Open Pit Granada Gold Project Rouyn-Noranda, Québec, published June 19, 2014, effective date May 6, 2014. Claude Duplessis, Eng. Gilbert Rousseau, Eng. Jonathan Gagné, Eng. Martin Stapinsky, P.Geo.,M.Sc.,Ph.D, are the independent qualified persons in accordance with National Instrument 43-101.
Granada Gold’s long-term goal (following rolling start) is to be a 100,000 ounce per-year open-pit producer over 10 years with an underground operation thereafter.
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