GGM:CC - Granada Gold Mine Bulk Sample Processing

(TheNewswire)

Rouyn Noranda, QC - TheNewswire - March 22, 2023 - Granada Gold MineInc. (TSXV:GGM) (OTC:GBBFF)(Frankfurt:B6D) (the “ Company ” or “ Granada ”) is pleased to provide an update on the processingneeds of, and availability to, Granada Gold Mines.

Frank J. Basa, P.Eng., President and CEO commented, “Customprocessing of the bulk sample at a local gold mill is botheconomically viable and risk-free.  The milling program is designedto ascertain the gold grade of the mineralized material. To furtherde-risk the processing of the bulk sample, installation of aprocessing facility on the Granada Gold Mine property may be warrantedshould custom processing costs be excessive”.

Bulk Sampling ProcessingHighlights :

• Local gold mills, both operating and shutdown, are available inOntario and Quebec within economic haulage distance of up to 300kilometers. Processing capacity from 800 to 2,000 tonnes per day isavailable. None of those mills have an up-front gravity circuit torecover the free gold from the mineralized material from the GranadaGold Mine. The free gold potential has been shown to be up to 50percent of the gold grade of the mineralized material from high-gradeVein One at Granada Gold Mines which was mined at 9-10 grams per tonnegold (see Exploration History section of Granada’s Mineral Resource Estimate Update, dated August20th 2022, from Company News Release 22 August 2022) .

• Custom mill modification to design and install a gravity circuit wouldrequire 6 to 12 months. Amending the existing custom mill permit wouldrequire 6 months. The total time to first processing would potentiallybe 6 to 12 months. Custom processing would be undertaken as a campaignin fixed lots to ensure no co-mingling of Granada mineralized materialwith mineralized material from other companies. Annual processingwould be 200,000 tonnes per year for 3 years at a rate of 600 tonnesper day.  Total mineralized material processed over the 3-year timeperiod as a bulk sample is 600,000 tonnes (defined as a rollingstart). It is estimated that 3 percent of an ore body is theempirically defined quantity required to most accurately represent thegrade of that ore body.  The Company is proposing that the processingof 600,000 tonnes may represent 3 percent of the open pit deposit inthe 2-kilometer defined mining strike length of the 5.5 kilometereast-west mineralized structure. The original bulk sample processingprogram was called Rolling Start and was designed to be undertakenover a three-year period. Two milling agreements have been signed inthe past 7 years. In one case, the permits were amended by GranadaGold Mine. Neither mill had the required gravity circuit and bothmilling agreements were eventually terminated.

• The purpose of a bulk sample is to corelate drill core data to millgrade data, to engineer a plant design, and to improve processeconomics. The current deposit at Granada Gold Mine, a formerhigh-grade producer at 10 grams per tonne, is only 20 percentexplored, with 97000 meters of drilling completed on the main depositup to 2018.  It is open at depth and along strike. An additionalprogram of 30,000 meters of drilling was started to extend theresource to the north near the world-famous Cadillac Break where over120 million ounces of gold have been mined in the last 90 years(Source MERN Quebec). Both drill contractors had equipment andtechnical problems before the drill program was stopped at 18,700meters in 2021. The company intends to restart the drill program whena suitable drilling contractor can be engaged to complete theremainder of the 30,000 meters plus an additional 90,000-meterprogram. Total meters drilled would be then about 217,000 meters.

Qualified person

The technical information in this news release has beenreviewed and approved by Claude Duplessis,P.Eng., GoldMinds Geoservices Inc., a member of the QuébecOrder of Engineers, and is a qualified person in accordancewith the National Instrument 43-101 standards.

About Granada Gold Mine Inc.

Granada Gold Mine Inc. continues to develop and exploreits 100%-owned Granada Gold Property near Rouyn-Noranda, Quebec, andis adjacent to the prolific Cadillac Break. The Company owns 14.73square kilometers of land in a combination of mining leases andclaims. The Company is currently undergoing a large drill program with 30,000 meters (2020-2021) out of120,000 meters complete. The drills are currently paused to providethe technical team the necessary time to evaluate and assimilateexisting 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 goldfrom two shafts down to 236 meters and 498 meters with open pit gradesfrom 3.5 to 5 grams per tonne gold.

Mineral Resource Estimate

On August 20, 2022 the Company released an updated NI43-101 technical report supporting the resource estimate update forthe Granada Gold project (Please see July 6, 2022 news release)reporting that the Granada deposit contains an updated mineralresource, at a base case cut-off grade of 0.55 grams per tonne goldfor pit constrained mineral resources within a conceptual pit shelland at a base case cut-off grade of 2.5 grams per tonne forunderground mineral resources within reasonably mineablevolumes, of 543,000 ounces of gold (8,220,000 tonnes at an averagegrade of 2.05 grams per tonne gold in the Measured and Indicatedcategory, and 456,000 ounces of gold (3,010,000 tonnes at an averagegrade of 4.71 grams per tonne) in the Inferred category. Please seeTable 1 below for full details. Report reference: GranadaGold Project Mineral Resource Estimate Update, Rouyn-Noranda, Quebec,Canada authored by Yann Camus, P.Eng. and Maxime Dupéré, B.Sc.,P.Geo., SGS Canada Inc. dated August 20th, 2022 and with an effectivedate of June 23rd, 2022.

Table 1: Mineral Resource Estimate Showing Tonnes,Average Grade, and Gold Ounces

(1) The1930-1935 production was removed from these numbers (164,816 tonnes at9.7 g/t Au / 51,400 ounces Au).

(2) TheIndependent QP for this resources statement is Yann Camus, P.Eng., SGSCanada Inc.

(3) Theeffective date is June 23 rd ,2022.

(4) CIM(2014) definitions were followed for Mineral Resources.

(5) Mineralresources which are not mineral reserves do not have demonstratedeconomic viability. An Inferred Mineral Resource has a lower level ofconfidence than that applying to a Measured and Indicated MineralResource and must not be converted to a Mineral Reserve. It isreasonably expected that the majority of Inferred Mineral Resourcescould be upgraded to Indicated Mineral Resources with continuedexploration.

(6) Noeconomic evaluation of the resources has been produced.

(7) Allfigures are rounded to reflect the relative accuracy of the estimate.Totals may not add due to rounding

(8) Composites have been capped where appropriate. The 2.5 m compositeswere capped at 21 g/t Au in the thin rich veins and at 7 g/t Au in thelow-grade volumes.

(9) Cut-offgrades are based on a gold price of US$1,700 per ounce, a foreignexchange rate of US$0.78 for CA$1, a processing gold recovery of93%.

(10) Pitconstrained mineral resources are reported at a cut-off grade of 0.55g/t Au within a conceptual pit shell

(11) Underground mineral resources are reported at a cut-off grade of 2.5g/t Au within reasonably mineable volumes.

(12) A fixedspecific gravity value of 2.78 g/cm 3 was used to estimate the tonnage fromblock model volumes

(13) Thereare no mineral reserves on the Property.

(14) Thedeepest resources reported are at a depth of 990 m.

(15) SGS isnot aware of any known environmental, permitting, legal,title-related, taxation, socio-political, marketing or other relevantissues that could materially affect the mineral resourceestimate.

(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.

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 1990s, 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.

“Frank J. Basa”

Frank J. Basa, P. Eng.

Chief Executive Officer

For further information, Contact:

Frank J. Basa, P.Eng.

Chief Executive Officer

P: 416-625-2342

Or:

Wayne Cheveldayoff,

Corporate Communications

P: 416-710-2410

E: waynecheveldayoff@gmail.com

Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release. This news release may containforward-looking statements which include, but are not limited to,comments that involve future events and conditions, which are subjectto various risks and uncertainties. Except for statements ofhistorical facts, comments that address resource potential, upcomingwork programs, geological interpretations, receipt and security ofmineral property titles, availability of funds, and others areforward-looking. Forward-looking statements are not guarantees offuture performance and actual results may vary materially from thosestatements. General business conditions are factors that could causeactual results to vary materially from forward-lookingstatements.

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