ROUYN NORANDA, QC, Jan. 29, 2021 /CNW/ - Granada Gold
Mine Inc. (TSXV: GGM) (the "Company" or "Granada") is pleased
to provide an updated High-Grade Mineral Resource Estimate of the
Granada Gold Deposit using narrow, rich, vein modelling and both
open pit and underground resources and revised pit optimization
parameters which are based on the possibility of off-site custom
milling ore rather than constructing and using an on-site mill.
The National Instrument 43-101 Technical Report, including the
updated mineral resources for Granada contained in this news release, is
currently being completed by SGS and will be delivered and filed on
SEDAR by GGM within 45 days. The objective of the SGS assignment is
to update the MRE using the available data as of December 15, 2020. The goal is to present
resources with both open pit potential and underground potential.
Also, gold prices have evolved significantly since the 2019 MRE and
that has helped the MRE presented here.
The updated MRE focused on using a scenario with higher cut-off
grades than that used in the 2019 MRE. Gold price used is
1600 US$/oz.
Table 1 Updated Mineral Resource Estimate Base Case
1.
|
The 1930-1935
production was removed from these numbers (164,816 tonnes at 9.7
g/t Au / 51,400 ounces Au)
|
2.
|
The Independent QP
for this resources statement is Yann Camus, Eng., SGS Canada
Inc.
|
3.
|
The effective date is
December 15, 2020
|
4.
|
CIM (2014)
definitions were followed for Mineral Resources
|
5.
|
Mineral resources
which are not mineral reserves do not have demonstrated economic
viability. An Inferred Mineral Resource has a lower level of
confidence than that applying to a Measured and Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is
reasonably expected that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued
exploration
|
6.
|
No economic
evaluation of the resources has been produced
|
7.
|
All figures are
rounded to reflect the relative accuracy of the estimate. Totals
may not add due to rounding
|
8.
|
Composites have
been capped where appropriate.
|
9.
|
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$1, a gold recovery of 93%
|
10.
|
Pit constrained
mineral resources are reported at a cut-off grade of 0.9 g/t Au
within a conceptual pit shell
|
11.
|
Underground
mineral resources are reported at a cut-off grade of 3.0 g/t Au
within reasonably mineable volumes
|
12.
|
A fixed
specific gravity value of 2.78
g/cm3 was used to estimate the
tonnage from block model volumes
|
13.
|
There are no
mineral reserves on the Property
|
14.
|
The 2.5 m
composites were capped at 21 g/t Au in the thin rich veins and at 7
g/t Au in the low-grade volumes
|
15.
|
The deepest
resources reported are at a depth of 760 m
|
16.
|
SGS is not aware
of any known environmental, permitting, legal, title-related,
taxation, socio-political, marketing or other relevant issues that
could materially affect the mineral resource
estimate.
|
Revised Parameters
Table 1 General Parameters Used for
the Mineral Resource Estimate Update
Parameter
|
Value
|
Unit
|
Gold
Price
|
1600
|
US$ per oz
|
Exchange
Rate
|
0.76 US$ : 1
CA$
|
|
Pit
Slope
|
50
|
Degrees
|
Open Pit Mining
Cost
|
6.00
|
CA$ per tonne
mined
|
Underground Mining
Cost
|
105.00
|
CA$ per tonne
mined
|
Processing,
Transportation Cost and G&A
|
35.00
|
CA$ per tonne
milled
|
Gold
Recovery
|
93
|
Percent
(%)
|
Open Pit and
Underground Mining loss / Dilution
|
10 / 20
|
Percent (%) / Percent
(%)
|
Open Pit Cut-off
Grade
|
0.9
|
g/t Au
|
Underground
Cut-off Grade
|
3.0
|
g/t Au
|
About the Mineral Resource Estimate
New drilling was achieved by GoldMinds Geoservices in 2020.
While some of the results were still pending, SGS was mandated to
create an updated resource estimation that shows both the potential
for open pit resources and underground resources. In order to do
that, the individual thin, rich veins had to be modelled
individually. These veins are quite continuous (over distances of
800 m in strike and 900 m down dip). Mineralization is open at depth
and on strike. The maximum distance between linked intervals is
currently about 150 m. Some gaps of
about 300 m have no drilling but
should contain mineralization given the continuous nature of the
deposit.
The database used for this mineral resource estimate includes
drill results obtained from drill programs in 2009, 2010, 2011,
2012, 2016, 2017, 2018, 2019, 2020 and trenches from 2014 and 2015
plus many of the historic holes (1990's).
The thin, rich veins were modelled as a first step in the
estimation process. A grade of 0.7 g/t over a length of
2.5 m was used as a minimum. While
the 2.5 m constraint was always met,
some intervals were considered under 0.7 g/t to allow to model
continuous mineralized structures. We estimate that the final 56
thin, rich veins modelled contain 88% of the gold from intervals
that meet the 0.7 g/t over 2.5 m
criteria.
A large, low-grade zone was modelled around all intervals
containing significant gold. This large, low-grade volume is
similar in shape and size to the previous resource model.
Composites of 2.5 m were created
inside the thin, rich veins and in the low-grade volume. All
resulting 57 volumes were estimated as hard boundaries. The rich,
thin vein composites were capped at 21 g/t. It has a similar impact
on gold content as the previous estimate capping methodology. The
low-grade composites were capped at 7 g/t.
A block model was created with blocks of 5 x 2.5 x 2.5 m to fill the rich, thin veins while using
block centers as indicators for the block's nature. Both the
kriging and inverse square distance estimation methods were tested
with very similar results globally. The kriging is more
conservative in grade and gold content once we apply the cut-off
grades to report resources. Kriging was retained as the estimation
method of choice for this project. Search ellipsoids used for the
estimation are of 30 x 30 x 7.5 m, 60
x 60 x 15 m and 100 x 100 x
30 m respectively. A minimum of a
single drillhole is needed to estimate blocks inside thin, rich
veins. A minimum of 2 drillholes are needed to estimate blocks in
the low-grade volume. Search ellipsoid orientations are variable
depending on local orientation of the model.
The classification in measured, indicated and inferred was done
as a separate step with an algorithm with ellipsoids centered on
composites. A drilling grid with a minimum of 3 drillholes within
30 m of each other or less defines
measured resources (under 25 m most
of the time) and a drilling grid with a minimum of 3 drillholes
within 60 m of each other or less
defines indicated resources (under 50
m most of the time). Measured resource extends only by
20 m around drillholes and indicated
extends only by 40 m.
The mineral resource statement EXCLUDES the historical
production of 51,476 ounces of gold (181,744 Tons @ 0.28 oz/Ton Au)
from 1930 to 1935. These numbers were subtracted from the measured
resources in the whittle open pit.
The supporting NI 43-101 Technical Report will be posted on
SEDAR at www.sedar.com no later than 45 days after the date of this
release.
All information pertaining to the resource estimates has been
reviewed for accuracy and compliance under National Instrument
43-101 by Yann Camus, P.Eng., SGS
Canada Inc. and Qualified Person.
Mineral Resource Estimate Details
The following tables show the separation of resources between
the open pit portion and the underground portion of it.
Table 4 Updated Mineral Resource Estimate
Base Case with Details Between the Open Pit Portion and the
Underground Portion
- Same footnotes as Table 1 apply to this
table.
|
Earlier this year, (Granada Gold Mine Press Release,
August 11, 2020) the Company
processed by conventional gravity concentration, a large
1220-kilogram grab sample taken over a 3-meter strike length in
this stripped area, resulting in the recovery of 55.6 g/t native
gold where the native gold component has been defined, for
the Granada Gold Mine, to represent an average of 50% of the
recoverable gold (43-101 Technical Report dated February 13, 2019 on the Granada Gold Project
Mineral Resource Estimate, Rouyn Noranda,
Quebec authored by the Qualified persons, Allan Armitage, Ph. D.., P. Geo and Maxime
Dupere, B.SC., Geo both of SGS Canada Inc. – Section 13.1).
The gold-bearing sulphides were not recovered.
"This updated High-Grade Mineral Resource shows the Granada deposit has the potential for
extensive custom milling as well as for an on-site mill. The
current mineral resource was derived from near-surface drilling
over 2 kilometers of an east-west 5.5-kilometer mineralized
structure. Exploratory drilling to the north, near the Cadillac
Break has encountered high-grade mineralization at a vertical depth
of 1100 meters. Mineralization is open at depth and on strike. The
company is targeting 2.5 to 3 million ounces with the current
120,000-meter drill program building on the existing 120,000 metres
drilled to increase the density of holes on the property." said
Frank J. Basa, P.Eng., President and
CEO, "We are also fully permitted and shovel-ready as a shipper of
ore to any local mill."
Qualified person
The technical information in this news release has been prepared
by Yann Camus, P.Eng., independent
qualified person of SGS and was 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.
About Granada Gold Mine Inc.
Granada Gold Mine Inc. continues to develop the Granada Gold
Property near Rouyn-Noranda,
Quebec. Approximately 120,000 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 two shafts and two 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 5
to 3.5 grams per tonne gold.
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.