Frank Basa on Granada Gold’s key positioning in Quebec’s Cadillac Trend and the 2021 Gold Market

In a recent InvestorIntel interview, Tracy Weslosky speaks with Frank Basa, Director, President and CEO of Granada Gold Mine Inc. (TSXV: GGM) discusses their key positioning in Quebec’s Cadillac Trend, the rising value of gold and how this will translate into the marketplace in 2021.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Frank responds to Tracy’s questions about Matt Bohlsen’s article on why they may be ‘flying under the investment radar’ with, “We are on the Cadillac break, and of course anybody who is on the Cadillac break usually ends up with a multi-million-ounce deposit, which we did get.”

Frank goes on to explain changes that will positively affect the economics for Granada Gold, the impact of the gold market on the M&A market and adds “This is just the beginning of a long bull market for gold, and with our location; our infrastructure – we’re in a great position.” 

To watch the full interview, click here

About Granada Gold Mine Inc.

Granada Gold Mine Inc. is continuing to develop the Granada Gold Property near Rouyn-Noranda, Quebec. The property includes the former Granada gold mine which produced more than 50,000 ounces of gold at 10 grams per tonne gold in the 1930’s before a fire destroyed the surface buildings. 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 mineralized structure. The highly prolific Cadillac Trend, the source of 50 million plus ounces of gold production in the past century, cuts right through the north part of the Granada property on a line running from Val-d’Or to Rouyn-Noranda Quebec.

The Company is in possession of all 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, capable of producing up to 675,000 tonnes of ore over a 3-year period of time.  Additional information is available at www.granadagoldmine.com.

To learn more about Granada Gold Mine Inc., click here

Disclaimer: Granada Gold Mine Inc. is an advertorial member of InvestorIntel Corp.




Sitting adjacent to the prolific Cadillac Gold Trend, Granada Gold is traveling under the investment radar…

Sitting adjacent to the prolific Cadillac Gold Trend, Granada Gold is traveling under the investment radar…

Granada Gold Mine Inc.‘s  (TSXV: GGM) (“Granada”) recent drilling campaign is finding more reasonable grade gold, yet the stock price has been moving sideways and traveling under the investment radar for much of 2020. Many Granada investors must be wondering why and when will the market awaken to Granada’s potential?

The Granada Gold Mine Project sits adjacent to the prolific Cadillac Trend in Quebec Canada that has produced over 75 million ounces of gold over the past 100 years

Source

Granada’s news in 2020, when combined, could create an argument for a potential resource estimate increase. Here is a summary of the 2020 key gold news from Granada.

October 21, 2020 – Drill results highlights:

  • 3.66 g/t gold over 26.5m in hole GR-20-110 from 35.2 to 61.7m. An excellent result.
  • 5.25 g/t gold over 3.0m in hole GR-20-109 from 60.0 to 63.0m.
  • 2.62 g/t gold over 6.42m in hole GR-20-101 from 34.5 to 40.5m.

September 30, 2020 – Drill result highlights:

  • 5.64 g/t gold over 6.86m in GR-20-10 from 364.64 to 371.50m.
  • 4.26 g/t gold over 4.50m in hole GR-20-13 from 290.50 to 295.00m

Frank J. Basa, P.Eng. stated: “The drill hole data under the pit-constrained resource could potentially change the economics of developing the Granada Mine Property. Previously explored as a low-grade, open pit deposit, the company now envisions an open pit with a ramp from the bottom of the pit into the higher-grade mineralization below, significantly adding more ounces to the current resource.

August 11, 202055.56 g/t gold over 3m from 1,220 kg surface grab sample. The grade was very high because the grab sample collected the ‘native gold’. See more on this below.

March 2, 2020 – Two near-surface mineralized zones with drill results grading:

  • 11.53 g/t gold over 2.9 meters at core length 65.85 – 68.75m.
  • 2.61 g/t gold over 24.7 meters at core length 25.5 – 50.2m.

January 9, 202011.45 g/t gold over 33 meters.

Taken individually it is perhaps understandable that the market has not yet reacted overly positively. However, when we add up all the incremental good news for 2020 we start to see a very positive picture. Since July 2020, Granada has appointed Innovexplo to update their 43-101 Resource Study at the Granada Gold Mine property. Given the last resource update was done almost 2 years ago (Feb. 2019) then there is plenty of new drill results to be factored into an updated resource. The 2019 NI 43-101 report included an updated ‘pit constrained resource’ estimate of 762,000 ounces of gold @ 1.06 g/t Au in the Measured and Indicated categories, plus 455,000 ounces of gold @ 2.04 g/t Au in the Inferred category.

Granada also state in their October 2020 company presentation: “Resource upgrade underway –will include 2019-20 drill/sampling results” and “study begun on requirements to amend current open-pit mining permits for an on-site mill at Granada.”

The other factor to consider is the ‘native gold’ component which tends not to show up in the drill results. Native Gold is the natural gold to the area and does not include the gold found in the sulphide deposits. The native gold component has been defined for the Granada Gold Mine to represent an average of 50% of the recoverable gold from the mineralized deposit.

Frank J. Basa, P.Eng., Granada Gold’s President and CEO, commented: “Historically, the mill grades at Granada Mine were higher than drill grades. This is common with high-grade native gold concentration deposits on the Cadillac Trend – as it is with this deposit. The 1220-kg sample returned 4 times the drill grade of the core – using only the native gold component.”

Granada Gold’s history

Source

Closing remarks

When combining Granada’s 2020 results we see a steady flow of solid gold drill results and a great grab/small sample result of 55.56 g/t gold. The later is mostly due to the Granada property having significant native gold that drill results miss and bulk sample results collect. Combining all of this with good results in 2019 I would expect Granada will soon announce a potentially significant resource upgrade. Looking further out there is a strong possibility of a super low CapEx (C$6.7M) start-up pit (not including a mill) and further exploration upside as about 80% of Granada’s potential 5.5 km east-west strike length remains unexplored. Granada is also looking at options and permitting for an onsite mill.

At a the current market cap of C$17M and sitting adjacent to the prolific Cadillac Gold Trend, a growing resource, and being permitted for a 550tpd open pit operation, investors would be wise to take a second look at Granada Gold Mine Inc.

Disclosure: The author is long Granada Gold Mine Inc. (TSXV: GGM).




New drill and bulk sample gold results to drive updated resource estimate for Granada Gold

Initial bulk sample returns 55.6 grams per tonne native gold

Granada Gold’s summer drilling program is coming to an end with drill results and larger bulk sample results expected to follow. Given some of the past high-grade results, such as the recent small bulk sample returning 55.6 g/t native gold, investors are looking forward to the results of the new exploration with anticipation.

Granada Gold Mine Inc.  (TSXV: GGM | OTC: GBBFF) (‘Granada’) 100% owns the approximately 1,400 hectare Granada Gold Property, which includes the former Granada Gold Mine which produced more than 50,000 ounces of gold in the 1930s before a fire destroyed the surface buildings in 1935. Historic underground production between 1930 and 1935 from two shafts in the area had an average grade of 9.7 g/t gold and 1.5 g/t silver. About 80% of Granada Gold’s potential 5.5 km east-west strike length remains unexplored, leaving plenty of room for future exploration expansion.

Investors familiar with gold know that the ‘Cadillac Break Trend’ in Quebec, Canada, is possibly the best gold address in the world, producing more than 75 million ounces of gold over the past 100 years, and the immediate area has produced over 140 million ounces of gold.

Preparatory work for bulk sampling at Granada Gold Property – Spring 2020

Source

First small bulk sample result – August 2020

In recent news Granada announced a small bulk grab sample reporting “55.6 grams per tonne native gold from 1,220 kilograms of mineralized material taken from surface over a 3-meter strike length on Vein No 1 structure where diamond drill hole GR-19-A intersected 11.45 g/t gold from 0 to 33 metres core length.”

Anything above 5 g/t is considered high grade, so 55.6 g/t is an impressive result and may bode well for larger bulk sampling in the area. Also it is worth noting that due to using conventional gravity concentration only native gold was recovered and quantified. The gold-bearing sulfides were not recovered. Native Gold is the natural gold to the area and does not include the gold found in the sulphide deposits. The native gold component has been defined for the Granada Gold Mine to represent an average of 50% of the recoverable gold from the mineralized deposit.

Granada Gold President and CEO, Frank J. Basa, comments: “A bulk sample is to be taken at this location to further quantify the grade of the mineralized material. The company is awaiting quotes from local contractors to take this bulk sample,” with the bulk sample to be processed at Temiskaming Testing Labs in Cobalt, Ontario.

Drill results expected soon

Drill results are pending from Granada’s summer exploration campaign (June through August, 2020). Granada is focusing on the high-grade Vein No 1 structure. The mineralized structure has been traced on surface for over 115 meters on east-west trend by stripping. The structure extends over 500 meters when connected by the pierce points with the drill holes. Drill results reported in January, 2020 returned 11.45 g/t gold over 33 meters which sent the stock price up 62.5%.

Granada Gold’s existing resource and an updated resource on the way

In February 2019, the Company filed a NI 43-101 compliant technical report announcing an updated pit constrained resource estimate of 762,000 ounces of gold @ 1.06 g/t Au in the Measured and Indicated categories, plus 455,000 ounces of gold @ 2.04 g/t Au in the Inferred category.

Granada Gold’s 2019 NI 43-101 updated pit-constrained Resource estimate (surface pit only)

Source

In July Granada announced that it had retained Innovexplo to update their 43-101 Resource Study at the Granada Gold Mine property. Granada is currently drilling key holes aimed at increasing underground resources quality below existing pit constrained mineral resources, which is intended to augment the revised resource estimate now underway. Granada’s President and CEO Frank J. Basa explained that the company “decided that a revised 43-101 should be undertaken at this stage to better reflect the potential of the resource.”

Closing remarks

What has caught the market’s imagination is Granada Gold’s potential for a very low cost shallow starter open pit gold mine with already good grades, with the possibility of resource expansion and higher grades from additional exploration. Most open pit gold mines today are in the 0.5-2.0 g/t range, and Granada’s un-updated resource estimate already puts it comfortably in that zone. The CapEx for this starter pit is estimated at only C$6.7m and assumes the processing would be done at a nearby mill. Before that happens Granada Gold needs to further prove up the resource, which is what they are working on now with additional bulk sampling and drilling.

Open-pit permits are already in place for a “Rolling Start” 550 t/day operation by Granada. Milling may be done locally or perhaps on site if funds were raised to support this. Infrastructure is excellent with proximity to 10 gold mills, an established mining labor market, and the electrical grid nearby. Management is very experienced and has stated a goal for further resource expansion and plans for scalable possible future production.

It has taken 10 years for Granada Gold to get to where they are today, so patience may be the key for current investors. The good news for new investors is that most of the hard work has been done and a small scale starter pit operation may not be too far away now. With a current market cap of just C$21m, there appears to be room to grow, especially with gold at US$1,940/oz.

Disclosure: The author is long Granada Gold Mine Inc. (TSXV: GGM)




Winners flying high as gold hits US$2,000/oz

A look at some winners and who might be the next

Gold just hit a new all-time record high, breaking through the US$2,000/oz mark as the gold bull run continues in 2020. Gold started 2020 at US$1,498, and as I write this article is at US$2,013, for an impressive 37% gain YTD. Many gold miners are up much more than that due to their leverage to the gold price. Today we look at some of the strong performers and some others that may soon play catch up.

Gold breaks through US$2,000/oz to hit a new record high

Source: Trading Economics

Looking at the gold companies we follow at InvestorIntel, here are the past 1 year performances:

Alkane Resources had the best year of the above group as they continued to produce good volumes of gold in a rising gold price environment. Harte Gold had the least impressive year of the group as their mine had start up issues and a COVID-19 interruption. They also had higher operating expenses (OpEx) as they have not yet dug deep enough to reach the high grade gold.

Reviewing the top 5 performers yesterday on InvestorChannel’s Gold Watchlist Update, we see Granada Gold doing the best, up an impressive almost 35% on no news.

The top 5 gold performers yesterday as gold broke through US$2,000/oz

Source: InvestorChannel’s Gold Watchlist Update

Just last month I wrote “Granada Gold looks to be ‘underestimated’ by the market as drilling continues” and it looks like the market agreed with this yesterday.

Looking ahead, it is abundantly clear that those gold miners that can deliver will be handsomely rewarded. Investors need to always review the management to see if they have a good track record. Certainly if a gold miner can either increase their production and profits, grow their resource, or discover more gold (ideally high grade above 5 g/t), then at US$2,000/oz the shareholders will likely be very well rewarded.

Of the seven gold stocks InvestorIntel covers above, all look promising in a strong gold price environment.

Even the laggards Angkor Resources and Harte Gold can turn things around very fast. In the case of Angkor the current market cap (C$14m) looks cheap considering their numerous gold, silver, base metals, oil & gas exploration assets in Cambodia. With Harte Gold it is more just a matter of patience as the mine gets deeper they can access the higher grade gold, thereby reducing operating costs and increasing profits. This means investors willing to give the Company another 1-2 years may be well rewarded at the current reduced market cap (C$132m). Quebec Precious Metals is probably the most unloved and under the radar gold miner of the group covered, explaining their 0% one year return. With some good past drill results (1.15 g/t over 80.1 m, 14.20 g/t Au over 2 m, 5.05 g/t Au over 5.06 m, and 4.66 g/t Au over 3.50 m) and further results expected soon, a maiden resource estimate at the Sakami Project due by late 2020/early 2021, and with a market cap of just C$18m, this is one to get excited about. You can read more in my recent article “Quebec Precious Metals announces a ‘very promising gold discovery’ in James Bay.”

Of the recent winners – namely Alkane Resources, Euro Sun Mining, Granada Gold Mine, and West Red Lake Gold Mines – I would probably say Granada Gold Mine appears to have the most exciting potential given their existing ~1.2m I&I gold Resource, some exciting high grade drill results (including 11.45 g/t gold over 33 meters), and a market cap of only C$27m. West Red Lake Gold Mines also continues to look very promising after the one year +126% return. That’s because West Red Lake’s 3,100 hectare property has a 12 km strike length and 3 former gold mines, and contains 1.1 million inferred ounces of high-grade gold (7.57g/t) open at depth. The market cap is still only C$30m.

What a wonderful time to be following the gold miners. Let’s hope the Bank of America forecast comes true and I am writing about US$3,000/oz gold in the near future.

Disclosure: The author Matthew Bohlsen owns shares in Harte Gold, Eastmain Resources and Granada Gold, and may soon take a position in Quebec Precious Metals. The information in this article is general in nature and should not be relied upon as personal financial advice.




Granada Gold looks to be ‘underestimated’ by the market as drilling continues…

With gold prices at or near record highs investors love gold juniors, especially those that can rapidly discover gold, grow a good grade resource, then make it to production with a reasonably low CapEx, ideally in a safe jurisdiction.

One junior gold miner that is making significant moves along this pathway is Granada Gold Mine Inc. (TSXV: GGM).

Granada Gold is focused on exploration and development of their Granada Gold Project situated in the heart of the famous Abitibi Greenstone Belt and along the prolific ‘Cadillac Break Trend’ in Quebec, Canada. The Cadillac Break Trend has produced >75 million ounces of gold over the past 100 years, and the immediate area has produced over 140 million ounces of gold.

The Granada Gold Property is located in a famous gold producing region (Abitibi Greenstone Belt) and along the prolific ‘Cadillac Break Trend’

The Granada Gold Property

The Granada Gold Property includes the former Granada Gold Mine which produced more than 50,000 ounces of gold in the 1930’s before a fire destroyed the surface buildings. Historic underground production between 1930 and 1935 from 2 shafts in the area had an average grade of 9.7 g/t gold and 1.5 g/t silver.

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 mineralized structure. 80% of the potential 5.5 km east-west strike length remains unexplored, which means there remains very significant potential exploration upside.

In February 2019, the Company filed a technical report compliant with National Instrument 43-101 announcing an updated pit constrained resource estimate of 762,000 ounces of gold @1.06g/t Au in the Measured and Indicated categories, plus 455,000 ounces of gold @2.04g/t Au in the Inferred category.

Then in January 2020 Granada Gold announced a very exciting high grade gold drill result that resulted in a 62.5% stock price rise. Here is a summary:

“Granada Gold Mine intersects 11.45 G/T gold over 33 meters, supports continuity of high-grade structures. Unexpected near-surface, high-grade mineralization has been discovered within the recently explored two-kilometer LONG Bars Zone of the five and half kilometer Granada Shear zone.”

Note that the core length reported is estimated to have intersected only 15-20% of the entire thickness of the zone.

Granada Gold CEO and President Frank Basa stated:

“Recent drill results are in line with historic production grades of 8 to 10 g/t gold when Granada was mined in the 1930s. These drill results are not included in the current in-pit resource estimate for the property……The current drill program has unlocked the high-grade, near-surface potential and shows that the Granada gold deposit resource may have been underestimated.”

“Underestimated” is certainly an understatement, but time will tell. Anything over 5g/t is considered high grade gold, which is especially nice with the gold price (US$1,808/oz) near a record high. Granada Gold announced last month that they have begun further exploration with a summer drilling campaign aimed to identify further high grade gold and a 30-50 tonnes mineralized material bulk testing program.

Understandably Granada Gold now wishes to focus on further exploring their Granada Gold Project. In recent news Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) announced that they have now effectively acquired five mining leases at Castle East (part of the Castle mine property near Gowganda, Ontario). This means that Granada Gold can now focus on their Abitibi Greenstone Belt Gold Project; but still potentially benefit in silver via the consideration from the deal. Noting that Canada Silver Cobalt Works will issue 2,941,000 common shares to Granada Gold at a deemed price of $0.51 per share, for total deemed consideration of approximately $1,500,000. Each of the shares will be accompanied by one common share purchase warrant at a $0.55 exercise price for a period of five years.

The chart below clearly highlights that Granda Gold Mine Inc. has a much lower market cap relative to peers in the region. The reason for the lower market cap is the early stage and the existing M&I resource estimate is only at 1.06g/t grade. Clearly further high grade gold discoveries and inclusion of recent discoveries into the resource estimate can significantly boost the grade. Should this occur then certainly the “undervaluation” would become very clear.

Granada Gold Mine Inc. on a market cap of C$21 million is much lower than peers in the region

Source: Granada Gold July 2020 Company presentation

Next steps for Granada Gold include the summer drilling (June, July, August 2020) and bulk sampling campaign which is already underway and should soon start to release results. Beyond that the Company hopes to start production. Permits are already in place for an open-pit mine of 550 t/day and to ship to a local mill for processing, although the Company now considers an onsite Mill maybe a better solution. Previous engineering work is to be updated towards building a mill producing 80,000 to 100,000 oz Au per year.

Closing remarks

Granada Gold Mine Inc. certainly ticks many boxes. The Company is in a safe and also prolific gold location in Canada, has an established resource (M& I 762,000 ozs of gold @1.06g/t, plus Inferred 455,000 ozs of gold @2.04g/t), massive exploration upside already finding high grade gold (11.45 g/t gold over 33 meters etc), good infrastructure, and still trades on a relatively low market cap.

So yes Granada Gold Mine Inc. is “underestimated” and quite possibly “undervalued” right now, especially if they were to strike more high grade gold. With more drill results and a bulk sample result expected very soon in the area where recent high grade gold was found, it may well be a good time to take a position in Granada Gold.

Further reading




Frank Basa on the competitive advantages of Granada’s high grade gold mine

“We are on the Cadillac Trend. If there is any address that you should be on in North America or Canada is the Cadillac trend. It is known for producing multi million ounce deposits. Over 140 million ounces have been mined in the immediate area. Any deposit that anybody has ever worked on the Cadillac Trend has found lots of gold, high recoveries, high grades. That’s the norm. Our project is also the same. When it was operated, it was about 9.7 grams per ton…” States Frank Basa, President, CEO and Director of Granada Gold Mine Inc. (TSXV: GGM), in an interview with InvestorIntel’s Tracy Weslosky.

Frank went on to say that Granada Gold is ready to ride the wave of rising gold prices. Frank also said that the company has discovered at-surface mineralized structures with significant visible gold at its Granada Mine. Granada Gold has decided that the local mills would not be able to process this mineralized material without a significant modification of the process flowsheet to recover this amount of visible gold. Granada Gold has appointed Tetra Tech to begin a gap analysis to amend the current Certificate of Authorisation for an on-site mill at Granada Mine.

To access the complete interview, click here

Disclaimer: Granada Gold Mine Inc. is an advertorial member of InvestorIntel Corp.




Frank Basa on intersecting high-grade gold near surface at Granada Gold Property

“The deposit that we have was actually mined as a high-grade mine historically. Was about 10 grams a ton…The previous operator took out 14,500 ounces at 5 grams a ton. We decided to work on that extension going east…We are getting grades like 11-13 grams a ton. We are going to carry out near surface drill program and extend that. The structure is 5.5 km long and we have looked at only 500m of it. We are shovel ready. We have all the permits and we can ship the rock anytime to any mill in Quebec.” States Frank Basa, President, CEO and Director of Granada Gold Mine Inc. (TSXV: GGM), in an interview with InvestorIntel’s Tracy Weslosky.

Frank went on to say that its not normal to have to an open pit mine grading 5 grams a ton as most mines have about 1 gram a ton. He added the mine doesn’t have any overburden. Frank also provided an update on Granada Gold’s latest drill results. He said that the drill results were very good. The company drilled 33 meters of over 10 grams a ton near the surface.

To access the complete interview, click here

Disclaimer: Granada Gold Mine Inc. is an advertorial member of InvestorIntel Corp.