ROUYN NORANDA, QC, June 28, 2021 /CNW/ - Granada Gold Mine Inc.
(TSXV: GGM) (OTC: GBBFF) (Frankfurt: B6D) (the "Company" or
"Granada") is pleased to announce positive pre-concentration
test work performed at Gekko in Australia on low-grade, mineralized waste
material from the 500- tonne bulk sample recently taken from the
Granada Gold Mine deposit.
Preliminary results indicate that pre-concentration prior to
milling has the potential to increase the gold grade by 251 percent
with a 47.4 percent gold recovery for the low-grade mineralized
waste material.
In addition, the testing showed the calculated head grade of the
Granada sample to be 36.4 percent
higher than the assayed grade, which, if applied to Granada's historical in-situ mineral resource,
would result in a corresponding significant increase in
resources.
"The test work was performed in Australia where it is an accepted practice to
pre-concentrate low-grade ores on a commercial plant scale prior to
milling. At the two operational plants visited in Australia, the upgrading of low-grade ore
before milling and leaching had the result of lowering capital
requirements for the construction of the processing facilities and
in turn, reducing the processing cost per ounce," said Frank J. Basa, P.Eng., President and
CEO.
"The test work we performed at Gekko is very encouraging because
it highlights two important characteristics of the Granada
Deposit. First, it indicates the potential for
pre-concentration to improve the economics of the Granada deposit through the upgrading of
lower-grade mineralized waste material that would not otherwise be
milled or included in resource estimates. The concentrate produced
by the testing had an average grade of 1.16 g/t gold, which was
more than three times higher than the 0.33 g/t assayed grade of the
test sample. The type of lower-grade material we tested is
currently not included in Granada's historical in-situ mineral resource
estimate where the cut-off grades are 0.4 g/t gold.
"Second, the test work showed that the calculated head grade of
the sample (0.45 g/t Au) was 36.4 percent higher than the assayed
head grade (0.33 g/t Au). This is because the assayed grade often
does not capture the native gold component occurring in the
Granada deposit which has a
content of up to 50 percent native gold. This test result confirms
Granada historical mining
operational data obtained from past gold production and indicates
that the Granada in-situ
historical mineralized resource has the potential to increase the
amount of resource ounces." Mr. Basa stated.
Pre-concentration Test Results Highlights:
The combined test results from three gravity concentration
processes carried out on a low-grade sample indicate that the
Granada Gold sample is amenable to pre-concentration via the Gekko
IPJ (InLine Pressure Jig). The concentrate produced by the three
combined tests had an average grade of 1.16 g/t gold, which was 251
percent higher than the 0.33 g/t assayed grade of the test sample.
The concentrate amount was 18.2 percent of the sample size but with
47.1 percent recovery of the gold.
Test work was carried out on a 100 kg sample of Granada Gold
waste mineralized material to determine amenability of the sample
to pre-concentration via the Gekko InLine Pressure Jig.
Amenability was determined through three gravity
concentration processes. (1) DMS (dense media separation) Viking
testing (45.6 percent of the gold could be recovered into 24.8
percent of the test feed mass. Given an assayed test feed grade of
0.45 g/t gold, the corresponding concentrated grade equated to 1.30
g/t gold, giving a gold grade increase in value of 290 percent).
(2) DMS Cyclone testing (69.9 percent of the gold could be
recovered into 23.0 percent of the test feed mass. Given a test
feed grade of 0.22 g/t gold, the corresponding concentrate grade
equated to 0.78 g/t gold, giving a gold grade increase in value of
350 percent), and (3) Single Stage gravity table recovered 64.9
percent of the gold into 15.5 percent of the sample mass. Given
a test feed grade of 0.79 g/t Au, the corresponding concentrate
grade equated to 3.29 g/t gold, giving a gold grade increase in
value of 420 percent). Recoveries achieved through the DMS and
tabling test work are directly scalable to recoveries expected from
a plant scale InLine Pressure Jig.
Potential Increase in Historical In-Situ Mineral Resource
Estimate
The Granada in-situ historical
mineralized resource has the potential to be upgraded to a higher
grade and contain an increased amount of resource ounces based on
the 36.4 percent difference between assayed grade (0.33 g/t Au) and
calculated grade (0.45 g/t Au) recorded in the testing. The table
below shows the potential increase in gold ounces if this 36.4
percent difference were to be applied to the in-situ historical
mineralized resource.
Comparison of Potential Ounces of Gold between Assayed and
Calculated Grades
Type
|
Category
|
Au
(g/t)
|
Gold Ounces
Assayed1
|
Gold Ounces
Calculated2
|
Gold Ounces
Increase
|
In Situ
|
Measured
|
1.02
|
946,000
|
1,287,000
|
+341,000
|
Indicated
|
1.09
|
659,000
|
898,900
|
+239,900
|
Measured+Indicated
|
|
1,605,000
|
2,185,900
|
+580,900
|
Inferred
|
1.07
|
1,033,000
|
1,405,000
|
+372,000
|
1.
Assayed
|
2. Potential calculated increase of
36.4 percent
|
The original 43-101 historical in-situ Mineral Resource estimate
was as follows: Measured of 946,000 ounces gold at 1.02 grams per
tonne; Indicated of 659,000 ounces gold at 1.09 grams per tonne;
and Inferred of 1,033,000 ounces gold at 1.07 grams per tonne. A
cut-off grade 0.4 grams per tonne gold was used. (SGS NI
43-101 Technical Report PEA Granada Gold Project, February 4th 2013 by J. Gagné, G.
Gagnon, C. Duplessis, G. Rousseau).
Details of Revised Resource Calculation
The company may undertake a review of historical drill data to
generate an updated revised in-situ resource. All drill data below
1.0 g/t gold may be considered. In addition, lowering the cut-off
grade below 0.4 g/t gold may be considered for a potential increase
in the updated resource.
Qualified person
The technical information in this news release has been reviewed
by Claude Duplessis, P.Eng.,
GoldMinds Geoservices Inc. member of Québec Order of Engineers and
a qualified person in accordance with National Instrument 43-101
standards.
Quality Control and Reporting Protocols
All NQ core assays reported were obtained by either 1-kilogram
screen fire assay or standard 50-gram fire-assaying-AA (Atomic
Absorption) finish or gravimetric finish at (i) ALS Laboratories in
Val d'Or, Québec, Thunder Bay, Ontario, Sudbury, Ontario or Vancouver, British Columbia. The screen assay
method is selected by the geologist when samples contain visible
gold. The drill program, Quality Assurance/Quality Control
("QA/QC") and interpretation of results is performed by qualified
persons employing a QA/QC program consistent with NI 43-101 and
industry best practices. Standards and blanks are included with
every 20 samples for QA/QC purposes for this program in addition to
the lab QA/QC.
About Granada Gold Mine Inc.
Granada Gold Mine Inc. continues to develop the Granada Gold
Property, including 2 fully permitted Mining Leases (BM-852 and
BM-813), near Rouyn-Noranda,
Quebec. Approximately 140,000 meters of drilling has been
completed to date on the property, focused mainly on the extended
LONG Bars zone which trends 2 kilometers east-west over a potential
5.5 kilometers of mineralized structure. The highly prolific
Cadillac Break, the source of more than 75 million plus ounces of
gold production in the past century, cuts through the north part of
the Granada property, but is not
necessarily indicative of mineralization hosted on the company's
property.
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 twenty-two 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 grams per tonne
gold from two shafts down to 236 m
and 498 m with open pit grades from
3.5 to 5 grams per tonne gold.
Updated Mineral Resource
The updated resource at the Company's Granada Gold project in
Rouyn-Noranda, Quebec was
estimated by SGS Canada and outlined in a January 29, 2021 news release. The final
report was filed March 15, 2021 with
an Effective date of December 15,
2020. The 43-101 Technical Report is titled: Granada Gold
Project Mineral Resource Estimate Update, Rouyn-Noranda, Quebec, Canada authored by
Yann Camus, P.Eng. and Maxime
Dupéré, B.Sc, géo. Both of SGS Canada Inc.
Updated Mineral Resource Estimate Base Case with Details
Between the Open Pit Portion and the Underground Portion
Type
|
Category
|
Tonnes
|
Au
(g/t)
|
Gold
Ounces
|
In Pit
|
Measured1
|
3,756,000
|
1.89
|
228,000
|
Indicated
|
1,357,000
|
2.55
|
111,000
|
Measured+Indicated
|
5,113,000
|
2.06
|
339,000
|
Inferred
|
34,000
|
11.29
|
12,000
|
Underground
|
Measured
|
37,000
|
4.22
|
5,000
|
Indicated
|
807,000
|
4.02
|
104,000
|
Measured+Indicated
|
844,000
|
4.03
|
109,000
|
Inferred
|
1,244,000
|
6.33
|
253,000
|
1.
|
Cut-off grades are
based on a gold price of US$1,600 per ounce, a foreign exchange
rate of US$0.76 for CA$1, a gold recovery of 93
percent
|
2.
|
Pit constrained
mineral resources are reported at a cut-off grade of 0.9 g/t Au
within a conceptual pit shell
|
3.
|
Underground
mineral resources are reported at a cut-off grade of 3.0 g/t Au
within reasonably mineable volumes
|
The Company is in possession of all mining permits required to
commence the initial mining phase, known as the "Rolling Start",
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
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
SOURCE Granada Gold Mine Inc.