Granada Gold Mine posts high-grade flow sheet for Granada project, Quebec

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Granada Gold Mine Inc. [TSXV-GGM; OTC-GBBFF; FSE-B6D] announced the development of a high-grade flow sheet for the ore at its Granada property. Leveraging this advancement, the company is currently sourcing the main processing equipment designed to operate at 10 grams per tonne gold or higher, with a targeted capacity of 550 tonnes per day. The plant is of modular design and can be increased in increments of 550 tonnes per day capacity.

Historically, Granada’s vein 1 was mined from underground at an impressive grade of 9-10 g/t gold. With this new flow sheet and equipment, Granada Gold Mine is positioned to become a low-cost producer of gold on the prolific Cadillac Break.

Frank Basa, CEO, remarked, “One of our metallurgical consultants previously assessed the cash costs per ounce gold, estimating them to be approximately US$959 per ounce for an initial mine and milling cost, based on a previous gold price of US$1,462 per ounce. However, the current surge in gold prices (US$2,346 per ounce and CAD$3,189 per ounce, yesterdays spot price) significantly enhances our projected revenues and internal rate of return (IRR) for the project, making what was already an attractive prospect even more compelling.”

Granada Gold Mine anticipates a low capital expenditure (CAPEX) for the return on investment, particularly in light of the rising gold prices. This favorable combination of factors underscores the company’s confidence in the economic viability and potential profitability of the Granada project.

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 km2 of land in a combination of mining leases and claims. The company is 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.

On August 20, 2022, the company released an updated NI 43-101 technical report supporting the resource estimate update for the Granada Gold project eporting 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 at an average grade of 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 1930s 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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