Granada Gold Mine to carry out structural analysis over 5.5 km of mineralized structure for Granada Gold property, Quebec
Granada Gold Mine Inc. [TSXV: GGM; OTC: GBBFF; FSE: B6D] has contracted Ronacher McKenzie Geoscience Inc. (RMG) to review the company’s data to provide a new structural interpretation of the Granada property, Quebec.
“With 80% of the 5.5-km east-west mineralized structure largely unexplored, and with the price of gold now over US$4,000/oz, which is significantly higher than when the resource estimates for the property were done several years ago, there is potential for a significant resource increase,” stated CEO Frank Basa, P.Eng. Ontario.
“We are very pleased that RMG has agreed to conduct the review. We have drilled intensively in the southwestern part of the Granada property, near the past-producing mine, to develop a gold resource estimate close to the surface suitable for an open pit. However, developing the structural analysis across the property and tying the existing knowledge from the high-density drilled area to the under-explored claims laterally and to depth will boost the geological knowledge of the entire property.”
There is a significant amount of both public and company sources of geophysical, geological and cultural data that will be used to complete a detailed lineation study to provide a new structural evaluation. This information, along with the drill database from over 150,000 metres of drilling developed from company drill data since 2007 and historic drill data from the 1990s, will provide additional information to add to the overall interpretation process.
To be able to explore at depth at the north end of the property as well as along strike both east and west from the core area currently explored, a structural interpretation will provide information critical to the success of future and ongoing exploration.
On August 22, 2022 the company filed 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 oz gold (8,220,000 tonnes averaging 2.05 g/t Au) in the Measured and Indicated category, and 456,000 oz gold (3,010,000 tonnes averaging 4.71 g/t Au) in the Inferred category
Granada Gold Mine Inc. continues to develop and explore its 100%-owned Granada Gold Property near Rouyn-Noranda, Quebec, and 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 currently undergoing a large drill program with 20,000 metres out of 120,000 metres complete. The drills are currently paused to provide the technical team with the necessary time to evaluate, assimilate existing data and wait for improved market conditions.
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 22 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.
The property includes the former Granada Gold underground mine which produced more than 50,000 oz 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.