Project of the Week: Granada Gold Project, Canada
21st October 2020
Featured Image: Gold Pour (Photo: Granada Gold Mine: https://www.granadagoldmine.com/)
Granada Gold Mine (TSXV: GGM, OTC: GBBFF, F:B6D) are focussed on the development and expansion of the Granada Gold Property in the Abitibi Gold Belt, Quebec. The project already has NI 43-101 resources (Table 1) which Granada aim to upgrade. It is thought that the current low-grade open pit plan can be updated to a combined higher-grade open-pit and underground mine, with the underground portion adding significantly more ounces.
First staked in 1922, the Granada Mine has actually produced 51,476 oz of ore at averages of 9.7 g/t Au and 1.5 g/t Ag. Production at Granada ceased in 1935 due to a destructive fire, but it has remained hot property through the 1900s up to the present day.
The potentially high tonnage, near-surface orogenic gold deposit is located immediately south of the highly prospective Cadillac Break Trend in the Abitibi Gold Belt (Figure 1). Over 75 million ounces of gold have been produced in the Cadillac Break Trend in the last 100 years and secondary structures proliferating through the Granada property are therefore of great interest owing to their potential to have acted as pathways for mineralising fluid.
Mineralisation is found in structurally controlled (E-W) mesothermal veins and stringers, hosted in Pontiac metasedimentary rocks and granitic sills in the Granada Shear Zone (“LONG Bars Zone”). Visible gold has been observed at surface (Figure 2) and underground, where it is found at vein margins or within fractures of coarse veins and sulphides.
Using magnetic survey data and the results of previous drill programs, Granada have generated a number of targets which have been and will continue to be drilled this Autumn/Winter to expand the current in-pit resource estimate. This will include infill drilling near and below the current pit outline, as well as north and northwest of the pit. Primary targets are 3 mineralised veins.
Autumn drilling from this year comprised a 6000m program which intersected mineralisation in every hole. Highlights are 5.64 g/t Au over 6.86m including 20.4 g/t Au over 1.5m, and 4.26 g/t Au over 4.5m including 11.9 g/t Au over 1.5m. Granada’s 2020 bulk sampling produced promising results including 55.6 g/t native gold from a 1,220 kg grab sample from the primary target, Vein No. 1.
As well as being a defined resource, the gold deposit at the Granada property has simple metallurgy. A 94.9% gold recovery has been achieved using gravity separation with cyanide extraction. The project is close to 10 gold mills, an established mining labour market and electrical grid. On top of this the site is fully permitted to begin open-pit mining of the current pit-constrained resources, but Granada aren’t settling for that.The company is planning to continue with drilling and bulk sampling to upgrade the size and grade of the deposit and to update the resource estimate to ensure the value of Granada Mine is fully appreciated by potential producers.
A final word on the potential of the property, the current open pit design sits in the 2km LONG Bars Zone, which is only a segment of a possible 5.5km structure. Only 20% of this 5.5km has been explored.
All information in the above article was taken from the Granada Gold website and materials within as well as personal communications with Frank Basa (President, CEO & Chairman).
Granada Gold: https://granadagoldmine.com/
Latest NI43-101 (2019): https://bit.ly/3lMlTRJ
Corporate Presentation (Oct 2020): https://bit.ly/3k2m4Yu