Pre-concentration test results on low-grade mineralization at Granada Gold Mine return 6.0 grams per tonne gold

ROUYN-NORANDA, QC, March 18, 2019 /CNW/ - Granada Gold Mine (TSXV: GGM) ("Granada Gold" "GGM" or the "Company") is pleased to report on the results of a preliminary gravity separation study that demonstrates the positive impact of pre-concentrating lower-grade, gold-bearing rock from its Granada Gold project in Rouyn-Noranda, Quebec.

The higher grades attained during the tests may have implications for the grade of future mill feed, the size of the gold deposit, and the costs associated with future mine production.

Mr. Frank Basa, Chairman and CEO of Granada Gold, stated, "These metallurgical results can further de-risk the project and provide additional processing options for the company, and they potentially expand the existing resource by lowering the average gold grade that could be mined and processed using pre-concentration by gravity separation."

The preliminary gravity test work, part of a suite of tests on rock samples from the Current Resources at the Granada Gold Mine project, was conducted by industry leader Gekko Systems of Ballarat, Australia. Their innovative pre-concentration system increases recovery values, reduces ore mass and waste, reduces water use, lowers power requirements, and improves feed rates, all potentially meaning lower capital and operating costs for Granada along with higher recovery rates.

To summarize results, a 260-kilogram sample of low-grade drill core assaying 0.6 grams of gold per tonne was upgraded to 6.0 grams per tonne with a 60 percent overall recovery. The Gekko laboratory processed the sample by crushing through different size fractions, homogenized, and split according to standard lab practices. Gravity tests were conducted on coarse and fine fractions, approximately +600 µm and -150 µm, respectively.

A grade of 21 grams per tonne gold was achieved from the coarse size fraction, with a recovery of 40%, resulting in an upgrade ratio (conc./feed) of 35.  The test result which recovered the most gold has a gravity concentrate grade of 6.0 grams per tonne gold with a gold recovery of 60 percent (see Table 1 below).

Management of Granada Gold understand that conventional mining and processing leave behind significant amounts of gold and other metals which could have potential economic value.

"As a result of this preliminary work, we believe that employing disruptive technologies on lower grade ore to pre-concentrate the mineralized material for process plant feed can be advantageous," said Basa. "This approach can be used to evaluate the potential to increase the gold resource and other recoverable metals which, in turn, will lower project capital and operating costs."

TABLE 1. Gekko Study Gravity Test Results

In a related matter, the company has also begun a test program using the pilot plant of its sister company, Canada Cobalt Works (TSXV: CCW). In this first round of tests, a 120-kilogram sample of low-grade mineralized rock from the Granada Gold Mine waste dump was processed by screening the material into three screen sizes followed by gravity separation.  These concentrates were then analyzed for gold, silver, cobalt, nickel, and copper (see Table 2 below).

TABLE 2. GGM Waste Rock Head Assay

The results are head assays of each screen class. Gravity assay test results are pending, with a particular focus on recoverable base metals.

The current feasibility study for the onsite gold mine and plant at Granada has been put on hold pending results of the metallurgical studies. The environmental studies to install a 600-tonne-per-day gravity leach plant are ongoing at the Canada Cobalt Works Castle mine. The flowsheet has been completed and equipment has been sourced.

Qualified Person

The technical information in this news release was prepared under the supervision of Frank J. Basa, P.Eng., Granada Gold Mine's Chairman and Chief Executive Officer, who is a member of Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-101.

About Granada Gold Mine Inc.

Granada Gold Mine Inc. continues to develop the Granada Gold Property near Rouyn-Noranda, Quebec. 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 of mineralized structure. The highly prolific Cadillac Break, the source of more than 75 million plus ounces of gold production in the past century, cuts through the north part of the Granada property.

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.  Additional information is available at www.granadagoldmine.com.

"Frank J. Basa"

Frank J. Basa P. Eng.
Chief Executive Officer and Chairman

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

SOURCE Granada Gold Mine Inc.