Granada Gold Modifies Warrants
Sep 16, 2022
September 16, 2022 – Granada Gold Mine Inc. (TSX-V: GGM) (the “Company” or “Granada Gold”) announces that further to its news release dated August 29, 2022, the Company is amending the terms of 9,053,800 warrants subscription for shares (the “Warrants”) by reducing the exercise price from $0.15 per share to $0.075 per share and by extending the term of the warrants by two years, such that the warrants Instead, the Warrants will expire on September 27, 2024. The effective date of the Warrant Amendment will be after September 27, 2022.
In accordance with the policies of the TSX Venture Exchange (the “Exchange”), the terms of the Warrants will also be amended to include an accelerated expiry clause, such that the exercise period of the Warrants will be reduced to 30 days if, in any period of 10 consecutive trading days during the remaining term of the Warrants, the closing price of the Company’s shares is $0.095 or more. All other terms and conditions of the Warrants remain unchanged.
The 9,053,800 warrants were issued pursuant to a non-brokered private placement which closed on September 27, 2019 and pursuant to which 9,253,800 units were issued. Each unit consisted of one common share and one warrant exercisable at a price of $0.15 per share, expiring on September 27, 2022.
These modifications remain subject to the approval of the Bourse and the consent of the holders of the warrants.
About Granada Gold Mine Inc.
Granada Gold Mine Inc. continues to develop and explore its 100% owned Granada gold property located near Rouyn-Noranda, Quebec, adjacent to the prolific Cadillac Fault. The Company controls 14.73 square kilometers of land in the form of mining leases and claims. The Company is currently carrying out an extensive drilling program of which 30,000 m of the total 120,000 m have been completed. The drills are currently on hold in order to allow the technical team the time necessary to evaluate and assimilate the existing data.
The Granada Shear Zone and the South Shear Zone encompass, according to detailed historical mapping and historical and current drilling results, up to 22 mineralized structures over a distance of more than five and a half kilometers along an east-west axis. . Three of these structures have historically been mined from four shafts and three open pits. Historical underground grades were 8 to 10 grams per tonne gold from two shafts drilled to 236 m and 498 m, while in-pit grades ranged from 3.5 to 5 grams per tonne gold.
Mineral Resource Estimate
On August 20, 2022, the Company released a new NI 43-101 technical report supporting the updated resource estimate on the Granada gold project (see news release dated July 6, 2022), indicating that the Granada deposit contains updated Mineral Resources based on a base case involving a cut-off grade of 0.55 g/t Au for the in-pit delineated Mineral Resources, within a conceptual pit outline, and a cut-off grade of 2.5 g/t underground mineral resources within reasonably mineable volumes, totaling 543,000 ounces of gold (8,220,000 tonnes at an average grade of 2.05 g/t Au) in the measured resource category and indicated, and 456,000 ounces of gold (3,010,000 tonnes at an average grade of 4.71 g/t Au) in the inferred resource category. See Table 1 below for further details. The report entitled ” Granada Gold Project Mineral Resource Estimate Update, Rouyn-Noranda, Quebec, Canada and written by Yann Camus, Eng., and Maxime Dupéré, B. Sc., Geo., of SGS Canada Inc., is dated August 20, 2022 with an effective date of June 23, 2022.
Table 1: Mineral resource estimate showing tonnes, average grades and number of ounces of gold
|
Cut-off grade (g/t Au) | Category | Kind | Tons | Au (g/t) | ounces of gold |
0.55 / 2.5 | Measured1 | In pit and underground | 4,900,000 | 1.70 | 269,000 |
Indicated | In pit and underground | 3,320,000 | 2.57 | 274,000 | |
| Measured and indicated | In pit and underground | 8,220,000 | 2.05 | 543,000 | |
presumed | In pit and underground | 3,010,000 | 4.71 | 456,000 |
- Production for 1930-1935 has been removed from these numbers (164,816 tonnes at 9.7 g/t Au / 51,400 ounces Au).
- The independent qualified person for the purposes of the resource estimate is Yann Camus, P.Eng., of SGS Canada Inc.
- The effective date is June 23, 2022.
- CIM (2014) definitions were followed for mineral resources.
- The economic viability of Mineral Resources that are not Mineral Reserves has not been demonstrated. Inferred Mineral Resources are subject to a lower level of confidence than Measured and Indicated Mineral Resources, and should not be converted to Mineral Reserves. However, it is reasonable to expect that most of the inferred mineral resources could be converted into indicated mineral resources by continuing exploration.
- No resource economic valuation was produced.
- All numbers have been rounded to reflect the relative accuracy of the estimate. The totals may therefore not correspond to the sum of the components.
- Composites were clipped where appropriate. The 2.5 m composites were clipped at 21 g/t Au in the rich, narrow veins and 7 g/t Au in the low grade volumes.
- Cut-off grades are based on a gold price of US$1,700 per ounce, an exchange rate of US$0.78 = C$1, and a gold recovery rate at milling by 93%.
- Pit-delineated Mineral Resources are presented at a 0.55 g/t Au cut-off within a conceptual pit outline.
- Underground Mineral Resources are presented at a cut-off grade of 2.5 g/t Au, within reasonably mineable volumes.
- A fixed density value of 2.78 g/cm3 was used to estimate tonnages from block model volumes.
- There are no mineral reserves on the property.
- The deepest resources included in the estimate are located at 990 m depth.
- SGS is not aware of any environmental, legal, tax, socio-political, permitting, title, marketing or other relevant issues that could materially affect the Mineral Resource estimate.
- Pit optimization results are used only to test the “reasonable prospect of economic mining” in an open pit and do not represent an attempt to estimate mineral reserves. There are no mineral reserves on the property. The results are used as a guide to assist in the preparation of the mineral resource estimate and to establish an appropriate cut-off grade for the mineral resource presentation.
The property encompasses the former underground Granada mine, which produced more than 50,000 ounces of gold at a grade of 10 grams per tonne gold in the 1930s from two shafts, before a fire destroyed surface facilities. In the 1990s, Granada Resources extracted a bulk sample from pit #1 of 87,311 tonnes at a grade of 5.17 g/t Au and also collected another bulk sample from pit #2 of 22,095 tonnes. tonnes at a grade of 3.46 g/t Au.
“Frank J. Basa”
Frank J. Basa, P.Eng.
President and CEO
For more information, please contact:
Frank J. Basa, P.Eng.
President and CEO
Tel.: 416-625-2342
Or:
Wayne Cheveldayoff,
Communications
Tel.: 416-710-2410
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services 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 relating to the timing and content of future work programs, geological interpretations, obtaining title, potential mineral recovery processes, etc Forward-looking statements relate to future events and conditions and therefore involve risks and uncertainties. Actual results could differ materially from the results currently anticipated in such statements.