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).