GGM:CC - Granada Gold Mine Update on ALS GoldSpot Targeting

(TheNewswire)

Rouyn Noranda, Q.C. - TheNewswire- May 8, 2023 - GranadaGold Mine Inc. (TSXV:GGM) (OTC:GBBFF) (Frankfurt:B6D) (the“Company” or “Granada”) is pleased toannounce ALS GoldSpot has completed its first round of deliverables as part of its approach to identifying highlyprospective areas for new discoveries at existing gold deposits. TheCompany expects the second round to produce new machine learning drilltargets for both the main Granada Block and the Aukeko block to theeast.

Highlights :

• Four medium-high risk holes for 3,100m of drilling havebeen identified in addition to the 9 zones where there could besignificant impact to the resource with some larger stepouts.

• LiDAR Processing and Derivative Products ultimatelyused to develop a new Lineament Map of the entire Granadaproperty.

• Geophysical Inversions of Regional Surveys and LocalDrone Surveys have been created.

• Traditional Targeting focusing on 9 sectors prioritizedby depth, grade of nearest mineralized interval, and potential forresource expansion. Total of 85,215m of drilling identified with12,700m in the highest priority.

With the combination of multiple LiDAR products, alineament map of the entire property was created. This data is to beused in both the 2D property geology map and the 3D geologicalmodel.

An Updated Property Geology Map was created, using thehistorical maps, lineament data, and additional drill data fromprevious Granada drill programs to fill in any gaps in the data.

Geophysical Inversions of Regional Surveys and LocalDrone Surveys were created and will be important in the next steps oftargeting to find drill targets for gold mineralization based on thisMachine Learning (ML) process.

The new 3-D geological model started with a Faultmodel, grouped into 3 orientations followed by a feldspar porphyrydyke model, and finally, a sedimentary rock model. A mathematicalmodel using gold intersections over 1 g/t was generated and trendsaround lithological contacts and faults were characterized. Thirty-Six(36) wireframes around these faults and contacts were generated todefine drill targets.

Nine (9) sectors were identified for potential drilltargets (see Figure 1: 9 drill target sectors ). Each sector was prioritized: high (1 - red), medium (2 -yellow), and low (3 - blue). Priority of each sector is based on theaverage depth, the grade of the nearest mineralized interval, and thepotential for resource expansion. Within each sector, there aredrillhole targets with the same priority classification. High beingthe first drilling and low being the later, definition drilling. Thespacing ranges from 25m (indicated potential) to 75-100m (inferredpotential). Of the total 85,215m of proposed drilling, the highestpriority drillholes account for 12,700m, the medium prioritydrillholes account for 16,925m of drilling and the remaining is55,590m.

Click Image To View Full Size

Figure 1: 9 drill target sectors

In addition to nine sectors, 4 drill holes have been proposed asexpansion drilling. These four holes are designed to assess theextension of multiple zones at the Granada site. They represent amedium-high risk for 3,100m of drilling but have the potential tosignificantly impact the resources. (See Figure 2: 3100m of proposed expansion drilling )

The company anticipates the second round of more robust results tocontain new ML-defined drill targets for the main Granada block andwill use the already well-defined mineralization characteristics fromthe data-dense Granada deposit to generate new and distinct targets atthe Aukeko block to the east.

Click Image To View Full Size

Figure 2: 3100m of proposed expansion drilling

Frank J. Basa, P.Eng. commented, President and CEO commented, “Nowthat ALS GoldSpot is familiar with the dataset, we are excited to seewhat ML targets will be generated in the next round.”

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

(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 themajority of Inferred Mineral Resources could be upgraded to IndicatedMineral Resources with continued exploration.

(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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