Granada Gold Mine Inc. (TSXV: GGM,OTCPK:GBBFF,Frankfurt:B6D) is a junior resource company currently advancing its high-grade Granada gold deposit in Quebec towards production. The past-producing mine is located on the Cadillac Trend near other mines in an area where over 75 million ounces of gold have already been produced.
The company is in a unique and advantageous position. Not only does it have a well-defined open-pit with gold resources in the order of 1 million ounces, but it has already successfully gone through a lengthy and costly permitting process and is the only non-producing mine on the Cadillac trend that has mining permits allowing it to open-pit mine and ship to a local mill.
In addition, recent drill results showing wide high-grade areas near the surface are being interpreted as presenting a much different mining scenario at Granada over the coming years – starting with open-pit mining at much higher grades (in the range of 4-5 g/t) than indicated by the reported resource calculations, and then moving to underground mining in the range of 8-10 g/t which is how it was mined in the 1930s.
Recent activity at Granada includes:
● High-grade drill results near the surface from fan drilling (a recent change in drill patterns) including 7.67 g/t gold over 15 meters.
● Currently examining the potential to develop the deposit into a 4 - 5 g/t gold open pit with mining then moving underground where past mining averaged 8-10 g/t gold.
● New discoveries from successful drilling at underground targets such as the Genesis target (8.39 g/t gold over 6 meters including 12.41 g/t gold over 4 meters).
● Exploration in other areas along strike indicates the potential to find more high-grade gold on the property since 80 percent remains unexplored.
● Pre-concentration testing for the conversion of low-grade material below 1 g/t gold into much higher grades (a range of 5 - 10 g/t gold range likely best to maximize recovery) for shipping to local mills or eventually an on-site mill (current permits allow shipping 550 t/d to local mills with discussions continuing to secure a milling contract).