GGM:CC - Granada Gold Announces Recent Drill Program has Increased Measured and Indicated Mineral Resources by 21% to 543000 oz Au and Inferred by 71% To 456000 oz Au

(TheNewswire)

July 6, 2022 – TheNewswire - Rouyn-Noranda, Quebec, Granada GoldMine Inc. (TSXV:GGM) (OTC:GBBFF) (the “Company” or “Granada”) ispleased to provide an updated mineral resources estimate at theGranada property, a past producer located adjacent to the prolificCadillac Break in the Abitibi near Rouyn-Noranda and close to severalgold deposits and operating mines in northwestern Quebec.

The estimates combine in-pit constrained andunderground mineral resources estimates and include the results of the30,000-meter drill program conducted on the Big Claim at Granada sincethe last estimate was published in January 2021.

HIGHLIGHTS:

• Measured and indicated in-pit and underground mineralresources estimated at 8,220,000 tonnes grading 2.05 grams/tonne (g/t)gold (Au), containing 543,000 oz Au;

• Inferred in-pit and underground mineral resourceestimated at 3,010,000 tonnes grading 4.71 g/t Au, containing 456,000oz Au;

• New estimates represent a 21 percent increase inmeasured and indicated gold mineral resources and a 71 percentincrease in inferred mineral resources compared with the previousestimate;

• Grades are in line with the Company’s target of 2 g/tAu for open pit and 4 g/t Au for underground resources;

• Step-out drilling 250 meters (m) to the north of thepit in the Big Claim confirmed gold mineralization at depth which wasalso indicated by past drilling on the property;

• Other step-out drilling further north to a depth of1,600m surprisingly encountered 21 mineralized zones of alkali metals,with a significant 53.1m thick zone of rubidium grading 340 ppm(in-hole length) above the downward trending gold veins (a rubidiummineral resource to be reported in a separate news release). The realthickness is expected to be about 35-40% of the in-holelength.

“Granada has been successful in achieving its goalswith last year’s 30,000m drill program, which was the first phase ofa planned 120,000m of drilling. We had planned to do much of thedrilling during the first phase in, around and below the existing pitaiming to significantly increase the gold mineral resources in linewith our target grades, and also to confirm gold mineralization withstep-out drilling to the north of the pit. We did all that and, withthe drill results we reported in news releases along the way and withthis resource update, we have quite adequately achieved our goals. Inaddition, we unexpectedly encountered a massive rubidiummineralization which has the potential to change the economics ofGranada as rubidium is an increasingly important alkali metal used inthe EV battery industry (see January 11, 2022 news release),” statedFrank J Basa, B.Eng., P.Eng., President and CEO.

“The potential of Granada has not yet been realized,as only about 20% of the property has been explored, and drilling hasbeen conducted on only 2 km of the 5.5km estimated mineralizedeast-west zone. We have plenty of prospective targets. Past and recentdrilling confirmed the presence of downward-sloping gold veins atdepth to the north of the pit but we mostly have not drilled enoughthere to count that as part of the mineral resource. And there is alot of exploration drilling we could do to the east as well along themineralized zone which we believe could be productive,” Mr. Basaadded.

The Granada property includes the former Granada Goldunderground mine which produced more than 50,000 oz of gold at 9.7 g/tAu from two shafts before a fire destroyed the surface buildings. Bulksamples taken from the surface in the 1990s and since then have gradedin the 3-5 g/t range (see May 10, 2022 news release).

The 2022 mineral resource estimates in this newsrelease represent the second estimate since the Company shifted itsapproach to the deposit by reducing the size of the pit in order toincrease the pit grade to the range of 2 g/t Au from 1 g/t Au (andreduce the production of waste and overburden removal) to improve thepotential economics of the deposit for future mining. The firstestimate since the shift was published in a news release on January29, 2021 and an associated National Instrument (NI) 43-101 technicalreport was released on March 15, 2021.

The previous mineral resource estimate published in2021 had reported a measured and indicated estimates for open pit of5,113,000 tonnes grading 2.06 g/t Au containing 339,0n00 oz Au, andunderground of 844,000 tonnes grading 4.03 g/t containing 109,000 ozAu (amounting to a combined open pit and underground contained 449,000oz Au). The 2021 estimate also reported inferred resources for openpit of 34,000 tonnes grading 11.29 g/t Au containing 12,000 oz, andunderground of 1,244,000 tonnes grading 6.33 g/t Au containing 253,000oz Au (amounting to a combined open pit and underground contained266,000 oz Au). Compared to the 2021 amounts of contained gold, thenew in-pit and underground resource estimates represent a 21 percentincrease for measured and indicated (543,000 oz Au in 2022 vs 449,000oz Au in 2021) and a 71 percent increase for inferred (456,000 oz Auin 2022 vs 266,000 oz Au in 2021).

The planned upcoming 2022 NI 43-101 technical reportusing data available as of January 2022 and including the updatedmineral resources for Granada contained in this news release iscurrently being completed by SGS and is expected to be delivered andfiled on SEDAR by Granada within 45 days. The goal is to presentresources with both open pit potential and underground potential usingcut-off grades (see table and notes) based on a gold price ofUS$1,700/oz, a foreign exchange rate of US$0.78 for CA$1 and aprocessing gold recovery of 93% (versus the use of US$1,600/oz,US$0.76 for CA$1 and 93%, respectively, in the 2021report) .

Table 1: Granada Mineral ResourcesEstimates as of June 23, 2022

(1) The 1930-1935 production wasremoved from these numbers (164,816 tonnes at 9.7 g/t Au / 51,400ounces Au).

(2) The Independent QP for thisresources statement is Yann Camus, P.Eng., SGS Canada Inc.

(3) The effective date is June23 rd , 2022.

(4) CIM (2014) definitions werefollowed for Mineral Resources.

(5) Mineral resources which are notmineral reserves do not have demonstrated economic viability. AnInferred Mineral Resource has a lower level of confidence than thatapplying to a Measured and Indicated Mineral Resource and must not beconverted to a Mineral Reserve. It is reasonably expected that the majority of Inferred MineralResources could be upgraded to Indicated Mineral Resources withcontinued exploration.

(6) No economic evaluation of theresources has been produced.

(7) All figures are rounded toreflect the relative accuracy of the estimate. Totals may not add dueto rounding

(8) Composites have been cappedwhere appropriate. The 2.5 m composites were capped at 21 g/t Au inthe thin rich veins and at 7 g/t Au in the low-grade volumes.

(9) Cut-off gradesare based on a gold price of US$1,700 per ounce, a foreign exchangerate of US$0.78 for CA$1, a processing gold recovery of 93%.

(10) Pit constrained mineralresources are reported at a cut-off grade of 0.55 g/t Au within aconceptual pit shell

(11) Underground mineral resourcesare reported at a cut-off grade of 2.5 g/t Au within reasonablymineable volumes.

(12) A fixed specific gravity valueof 2.78 g/cm3 was used to estimate the tonnage from block modelvolumes

(13) There are no mineral reserveson the Property.

(14) The deepest resources reportedare at a depth of 990 m.

(15) SGS is not aware of any knownenvironmental, permitting, legal, title-related, taxation,socio-political, marketing or other relevant issues that couldmaterially affect the mineral resource estimate.

(16) Theresults from the pit optimization are used solely for the purpose oftesting the “reasonable prospects for economic extraction” by anopen pit and do not represent an attempt to estimate mineral reserves.There are no mineral reserves on the Property. The results are used asa guide to assist in the preparation of a mineral resource statementand to select an appropriate resource reporting cut-off grade.

Figure 1 Isometric View Looking SSEShowing the Drill Holes, and the Thin, Rich Veins Model (107wireframes)

Click Image To View Full Size

Figure 2 Isometric View Looking SSEwith Block Model and drill holes. 0.55 g/t Au COG inside the pit and2.5 g/t Au COG under the pit

Click Image To View Full Size

Table 2: Granada Pit-ConstrainedMineral Resources Estimate

Same footnotes as Table 1 apply to this table.

Table 3: Granada Underground MineralResources Estimate

Same footnotes as Table 1 apply to this table.

Table 4: Comparison of 2021 and 2022 Assumptions Usedfor the Preparation of the Pit Shell Limiting the Mineral ResourceEstimates

About the Mineral ResourceEstimate

The Gold Deposit using narrow, rich, vein modelling andboth open pit and underground resources and revised pit optimizationparameters which are based on the possibility of on-site millingrather than of site custom milling. The methodology used for thisupdate of the resource estimation is largely the same as the previousestimation from 2021.

Metallurgical and environmental characterizationstudies on the mineralization are being untaken at SGS for a potentialmill on the Granada Mine Property.

In order to update the resource estimation, theindividual thin, rich veins were modelled individually. These veinsare quite continuous (over distances of 1,400m in strike and 1,000mdown dip). Mineralization is open at depth and on strike. The maximumdistance between linked intervals is currently about 150 m. Some gapsof about 300 m have no drilling but should contain mineralizationgiven the continuous nature of the deposit.

The database used for this mineral resource estimateincludes drill results obtained from drill programs in 2009, 2010,2011, 2012, 2016, 2017, 2018, 2019, 2020, 2021 and trenches from 2014and 2015 plus many of the historic holes (1990's).

The thin, rich veins were modelled as a first step inthe estimation process. A grade of 0.7 g/t over a length of 2.5 m wasused as a minimum. While the 2.5 m constraint was always met, someintervals were considered under 0.7 g/t to allow to model continuousmineralized structures. We estimate that the final 107 thin, richveins modelled contain 92% of the gold from intervals that meet the0.7 g/t over 2.5 m criteria.

A large, low-grade zone was modelled around allintervals containing significant gold. This large, low-grade volume issimilar in shape and size to the previous resource model.

Composites of 2.5 m were created inside the thin, richveins and in the low-grade volume. All resulting 107 volumes wereestimated as hard boundaries. The rich, thin vein composites werecapped at 21 g/t. It has a similar impact on gold content as theprevious estimate capping methodology. The low-grade composites werecapped at 7 g/t.

A block model was created with blocks of 5 x 2.5 x 2.5m to fill the rich, thin veins while using block centers as indicatorsfor the block’s nature. Both the kriging and inverse square distanceestimation methods were tested with very similar results globally. Thekriging is more conservative in grade and gold content once we applythe cut-off grades to report resources. Kriging was retained as theestimation method of choice for this project. Search ellipsoids usedfor the estimation are of 30 x 30 x 7.5 m, 60 x 60 x 15 m and 100 x100 x 30 m respectively. A minimum of a single drillhole is needed toestimate blocks inside thin, rich veins. A minimum of 2 drillholes areneeded to estimate blocks in the low-grade volume. Search ellipsoidorientations are variable depending on local orientation of themodel.

The classification in measured, indicated and inferredwas done as a separate step with an algorithm with ellipsoids centeredon composites. A drilling grid with a minimum of 3 drillholes within30 m of each other or less defines measured resources (under 25 m mostof the time) and a drilling grid with a minimum of 3 drillholes within60 m of each other or less defines indicated resources (under 50 mmost of the time). Measured resource extends only by 20 m arounddrillholes and indicated extends only by 40 m.

The mineral resource statement EXCLUDES the historicalproduction of 51,476 ounces of gold (181,744 Tons @ 0.28 oz/Ton Au)from 1930 to 1935. These numbers were subtracted from the measuredresources in the whittle open pit.

Qualified person

The technical information in this news release has beenprepared by Yann Camus, P.Eng., independent qualified person of SGSand was reviewed by Claude Duplessis, P.Eng., GoldMinds GeoservicesInc. member of Québec Order of Engineers and a qualified person inaccordance with National Instrument 43-101 standards.

About Granada Gold Mine Inc.

Granada Gold Mine Inc. continues to develop and exploreits 100% owned Granada Gold Property adjacent to the prolific CadillacBreak near Rouyn-Noranda, Quebec. The Companyowns 14.73 square kilometers of land in a combination of mining leasesand claims and to date Granada has conducted 150,000m of drilling onthe property. The Company recently completed 30,000m of a planned120,000m drill program aimed at expanding the size of the deposit. Thedrills are currently paused to provide the technical team with thenecessary time to evaluate and assimilate existing data.

The Granada Shear Zone and the South Shear Zonecontain, based on historical detailed mapping as well as from currentand historical drilling, up to twenty-two mineralized structurestrending east-west over five and a half kilometers. Three of thesestructures were mined historically from four shafts and three openpits. Historical underground grades were 8 to 10 grams per tonne (g/t)gold from two shafts down to 236m and 498m with open pit grades from3.5 to 5 g/t gold.

The property includes the former Granada Goldunderground mine which produced more than 50,000 ounces of gold at 10grams per tonne gold in the 1930’s from two shafts before a firedestroyed the surface buildings. In the 1990’s, Granada Resourcesextracted 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 grading3.46 g/t Au.

The Company is in possession of all mining permitsrequired to commence the initial mining phase, known as the “RollingStart”, which allows the company to mine up to 550 tonnes per day.Additional information is available at www.granadagoldmine.com .

“Frank J. Basa”

Frank J. Basa P. Eng.
President and Chief Executive Officer

For further information, pleasecontact:
Frank J. Basa, P. Eng., President and CEO at 1-819-797-4144 or
Wayne Cheveldayoff, Corporate Communications, at 416-710-2410 or waynecheveldayoff@gmail.com

Neither the TSX Venture Exchange nor its RegulationService Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release. This news release may contain forward-lookingstatements including but not limited to comments regarding the timingand content of upcoming work programs, geological interpretations,receipt of property titles, potential mineral recovery processes, etc.Forward-looking statements address future events and conditions andtherefore, involve inherent risks and uncertainties. Actual resultsmay differ materially from those currently anticipated in suchstatements.

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