PRECIOUS METALS

Granada drilling indicates deeper potential

Granada Gold Mine has reported intercepting 4m grading 107.8g/t gold under the recently-updated pit-constrained resource at its namesake project in Quebec.

Staff reporter
 Bulk sampling activity in 2020 at Granada Gold Mine’s namesake project in Quebec

Bulk sampling activity in 2020 at Granada Gold Mine’s namesake project in Quebec

The below pit drilling could potentially change the economics of developing the property, president and CEO Frank Basa said in a presentation.

"Previously explored as a low-grade, openpit deposit, the company now envisions an openpit with a ramp from the bottom of the pit into the higher-grade mineralisation below, significantly adding more ounces to the current resource," he said.

"The exploration efforts have delivered some of our most significant results to date, extending the high-grade strike to the northeast and confirm continuity and high-grade gold mineralisation at depth."

The latest drilling results are from an ongoing 120,000m programme at Granada, targing 2.5-3 million ounces.

The company raised almost C$535,000 in December at 22.5c per flow-through share for surface exploration, trenching and historical resampling of drill core.

It had a working capital deficiency of $5.4 million at September 30.

Granada was said to have produced more than 50,000oz at 10g/t in the 1930s before a fire destroyed the surface buildings.

The company had updated Granada's resource in January to an openpit and underground measured and indicated 5.96 million tonnes at 2.34g/t for 449,000 ounces and an inferred 1.3Mt at 6.46g/t for 266,000oz.

The in-pit estimate comprised 5.1Mt at 2.06g/t for 339,000oz and an inferred 34,000t at 11.29g/t for 12,000oz.

Granada said it had recovered 55.56g/t native gold from a 1,220kg grab sample from Vein 1, four times the grade of the drill core, using only the native gold component.

Its shares (TSXV: GGM) have ranged from 8.5-33.5c over the past year.

They closed up 18.2% to 19.5c on Friday, valuing it at $20.6 million (US$16.3 million).

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