Granada Gold Mine plans open pit mining at with renewal of Mining Development Lease BM-813, Quebec

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Granada Gold Mine Inc. [TSXV-GGM; OTC-GBBFF; FSE-B6D] announced significant progress in its pursuit of open-pit mining with the submission of a renewal for Mining Development Lease BM-813 which is now approved for signing.

This renewal, facilitated through the Directorate of Development and Control of Mining Activity (DDCAM) part of the Ministry of Natural Resources and Forestry (MNRF), marks a critical milestone in the company’s journey towards becoming a prominent gold producer on the Cadillac Break near Rouyn-Noranda, Quebec.

The renewal application for Mining Development Lease BM-813, covering a 21.12-hectare area, has been submitted under the provisions outlined in Section 121 of the Mining Act. Granada Gold anticipates now that BM-813 is approved for signing it is ready to see these consolidated mining leases (BM-813 and BM-852) monetized, underscoring the company’s commitment to advancing its operations responsibly and in compliance with regulatory standards.

Mining Lease BM-813 holds significant historical significance for Granada Gold, having previously yielded notable results from high-grade vein 1. A 500-tonne surface bulk sample extracted in 2022 showcased promising grades, with a reported gold content of 3.95 grams per tonne. This vein has a rich history dating back to the 1930s when it was mined underground, yielding impressive grades of 9-10 grams per tonne gold. Subsequent open-pit mining endeavors in 1993-1994 and 1996 further demonstrated the area’s potential, with grades ranging from 3.46 to 5.17 g/t gold.

Frank Basa, President and CEO, commented on the significance of the lease renewal: “We have made great strides this last year, we are pleased to see BM-813 coming through in conjunction with BM-852, the land package remains consolidated and permitted. We now have a timeline to work with. This is a critical step forward as we work towards open-pit mining and to solidify partnerships within our communities.”

Granada is seeking a milling partner to support its operational endeavors. With the renewal of BM-813, the company is poised to accelerate its timeline towards production and capitalize on the abundant opportunities presented by the prolific Cadillac Break.

Granada Gold Mine 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 km2 of land in a combination of mining leases and claims. The company is undergoing a large drill program with 30,000 metres out of 120,000 metres completed. 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 g/t gold from two shafts down to 236 metres and 498 metres with open pit grades from 3.5 to 5 g/t gold.

On August 20, 2022 the company released an updated NI 43-101 technical report supporting the resource estimate update for the Granada Gold project 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, of 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 averaging 4.71 g/t Au) in the Inferred category.

The property includes the former Granada Gold underground mine which produced more than 50,000 ounces of gold at 10 g/t 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.

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