Granada Gold is progressing well towards becoming a bulk tonnage gold producer
As the equity market melts down gold’s safe-haven status continues to shine as it heads towards US$1,500 an ounce, currently at ~US$1,462 an ounce. Junior gold miners that can grow their gold resource with exploration success and become producers, tend to be big winners in both good times and bad times.
One such junior to consider is Granada Gold Mine Inc. (TSXV: GGM) which is progressing well towards production. Granada Gold is a Canadian junior mining and exploration company with gold and silver properties in Quebec and Ontario, Canada. The Company’s current focus is directed towards the development and continued exploration of the Granada Gold Project situated in the heart of the famous Abitibi Greenstone Belt and along the prolific ‘Cadillac Break Trend’ in Quebec, Canada.
Cutting through the northern part of the property is the highly prolific Cadillac Break Trend, which has been the source of more than 75 million plus ounces of gold production in the past 100 years.
The Granada Gold Project sits on the prolific gold producing ‘Cadillac Break Trend’
The Granada Gold Project – Abitibi region of western Quebec, Canada
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Since the property was acquired in 2006, Granada Gold has conducted extensive exploration, metallurgical, engineering and permitting work, in establishing a sizable gold resource for the property. With approximately 120,000 meters of drilling completed to date, Granada Gold continues to develop the Granada Gold Project near Rouyn-Noranda, in the Abitibi Greenstone gold-mining region of western Quebec, Canada.
Resource estimate at the Granada Gold Project
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. Also noteworthy is, in 2007 a 140,000 tonne bulk mining sample resulted in 7,300 Au oz @ 1.62 g/t.
Frank J. Basa, P.Eng, Chairman of Granada Gold Mine, stated: “These robust numbers confirm our longstanding belief in the merits of this property, and they form the backbone for our next efforts. We intend to see how we can turn Granada into a bulk-tonnage mine, and we believe the improving mining markets position us well for this effort.”
To greatly increase the potential resource at the Granada Property on the Cadillac Trend, the Company’s extended Phase I metallurgical test program will be recovering the low-grade, halo-effect gold mineralization. Low-grade waste pile mineralized material has been sent for process optimization to increase the gold grade with an extra focus on cobalt and nickel recovery.
Frank J. Basa commented: “The test results to date increasingly indicate that there is potential to upgrade this low-grade gold within the halo-effect mineralized material.”
Gold production plans
With numerous high grade exploration targets, in a historical prolific zone, Granada Gold is targeting to become a 100,000 oz a year gold producer. The initial ‘Rolling Start’ production phase, which allows the company to mine up to 550 tonnes per day, will produce 25,000 ounces of gold per year. The Company intends within three years to complete engineering, financing and construction of a new mill designed to produce 100,000 ounces of gold per year.
The Granada Gold Project ‘Rolling Start’ site
Next steps for Granada Gold
Granada Gold’s current work is focused on two immediate objectives that include: Exploration aimed at doubling the size of the deposit within two years and site preparation for the initial “Rolling Start” production phase. The preparation would include open pit mining of high grade areas and the shipping of ore for processing, for which permits were obtained in 2016.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in ... <Read more about Matthew Bohlsen>