GGM:CC - Granada Gold Mine to Update Historic PFS for Bulk Sample Processing
(TheNewswire)
Rouyn Noranda, Q.C. - TheNewswire- March 29, 2023 - Granada Gold Mine Inc.(TSXV:GGM) (OTC:GBBFF) (Frankfurt:B6D) (the “Company” or“Granada”) is pleased to announce it will update the historic PFSof 2014 where proven, probable reserves and costs to process the bulksample (rolling start) of Granada Gold Mines were identified.
Frank J. Basa, P.Eng., President and CEO commented, “Since 2014, thecost of custom processing and the price of gold have both increasedabout 30 percent. Using the historical PFS as a good indication of thecost per ounce for this bulk sample, the potential profitability formining this deposit is excellent.”
Tables: Granada Project HistoricalReserves and Cost for Rolling Start (bulk sample presented as millfeed 2014 PFS)
Granada Historical Reserves of 2014 for the rollingstart:
| Material Type |
| Cut-off |
| Material |
| Grade |
| Au** |
| g/t Au |
| tonnes |
| g/t Au |
| ounces |
| Ore* Historical |
| Proven Reserves |
| 1.69 |
| 170,000 |
| 3.72 |
| 20,500 |
| Probable Reserves |
| 1.69 |
| 399,000 |
| 4.46 |
| 57,000 |
| Total |
| 1.69 |
| 569,000 |
| 4.24 |
| 77,500 |
Historical project costs and Revenues of 2014:
| Item |
| Unit |
| Value |
| Total revenues |
| $ |
| 102,700,000 |
| Total operating costs |
| $ |
| 65,100,000 |
| Pre-production capital costs |
| $ |
| 6,700,000 |
| Sustaining capital costs |
| $ |
| 2,900,000 |
| Royalties paid |
| $ |
| 3,100,000 |
| Pre-tax |
| Undiscounted benefits |
| $ |
| 28,400,000 |
| NPV discounted at 6.00 % |
| $ |
| 24,700,000 |
| Internal rate of return |
| % |
| 169.40% |
| Payback period |
| month |
| 6 |
| After-tax |
| Undiscounted benefits |
| $ |
| 22,700,000 |
| NPV discounted at 6.00 % |
| $ |
| 19,500,000 |
| Internal rate of return |
| % |
| 136.00% |
| Payback period |
| month |
| 8 |
Further Quoted Historical PFSHighlights from 2014 :
In the context of re-engineering to increase robustness of the Granadaproject, Mineral resources have been remodelled with mineral zoneshaving a minimum horizontal width of 7m down to elevation 237.5m in2014 for the PFS. This resource model has been used for pitoptimization and design for the “Rolling Start” project. Thismodel starts from the surface and pit bottom to elevation 237.5metres. Lower grade is now excluded from the mineral resourcestatement. No gold loss has occurred from the PEA resource model tothe actual presentation. It is all a matter of the mineral cut-offgrade used with the associated economic scenario. In order to addressmining underground, mineralized zones have been remodelled with 3 to 4meters horizontal width below elevation 237.5 metres.
Historical, not current, highlights of 2014 include a Measured andIndicated combined underground gold resource of 325,450 ounces of goldat an average grade of 5.10 g/t gold plus 25,700 ounces Inferred at agrade of 7.14 g/t gold. The combined underground measured resource is107,600 ounces (763,500 tonnes grading 4.38 g/t), indicated resourceis 217,600 ounces (1,221,000 tonnes grading 5.54 g/t), inferredresource is 25,700 ounces gold (112,000 tonnes grading 7.14 g/t Au)using a cut-off grade of 0.40 g/t. Gold price of 1400/ Oz withconstant exchange rate (CDN$:US$) of 0.90.
For additional details, the document is still on SEDAR as NI 43-101Technical Report Prefeasibility Study (PFS) Phase 1 – Open PitGranada Gold Project Rouyn- Noranda Québec dated June 19 th , 2014, by SGS, Roche, andGoldMinds for Gold Bullion Development Corp. Granada Gold Mine doesnot consider the 2014 PFS to be current as per NI 43-101 regulation.This being said, it is the basis for the fully permitted mining leaseand environmental permits (Certificate of Authorization).
Cautionary statement : to givean appraisal of what to expect in the FPS update within the fullypermitted pit shell of 2014, the company is presenting the historicalnumbers which are not current and should not be relied upon as thesewill be updated in 2023.
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, and is adjacent to the prolificCadillac Break. The Company owns 14.73 square kilometers of land in acombination of mining leases and claims. The Company is currentlyundergoing a large drill program with 30,000meters (2020-2021) out of 120,000 meters complete. The drills arecurrently paused to provide the technical team the necessary time toevaluate 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 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
The mineral resources of the PFS are inclusive of the2022 Mineral resource update. On August 20, 2022 the Company releasedan updated NI 43-101 technical report supporting the resource estimateupdate for the Granada Gold project (Please see July 6, 2022 newsrelease) reporting that the Granada deposit contains an updatedmineral resource, at a base case cut-off grade of 0.55 grams pertonne gold for pit constrained mineral resources within a conceptualpit shell and 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
| Cut-Off (g/t Au) |
| Classification |
| Type |
| Tonnes |
| Au (g/t) |
| Gold Ounces |
| 0.55 / 2.5 |
| Measured 1 |
| InPit+UG |
| 4,900,000 |
| 1.70 |
| 269,000 |
| Indicated |
| InPit+UG |
| 3,320,000 |
| 2.57 |
| 274,000 |
| Measured & Indicated |
| InPit+UG |
| 8,220,000 |
| 2.05 |
| 543,000 |
| Inferred |
| InPit+UG |
| 3,010,000 |
| 4.71 |
| 456,000 |
(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 reserveson the Property. The results are used as a guide to assist in thepreparation of a mineral resource statement and to select anappropriate 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
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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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