Granada hires Ronacher McKenzie for structural analysis

Executive Summary

• Granada Gold Mine Inc. has contracted Ronacher McKenzie Geoscience Inc. (RMG) to conduct a comprehensive structural analysis of the Granada property, focusing on a 5.5-kilometer east-west mineralized structure.
• The company highlights that 80% of this structure remains largely unexplored and cites the current gold price exceeding $4,000/oz as a catalyst for potential significant resource increases.
• The structural interpretation aims to tie existing high-density drilling data from the southwestern part of the property to underexplored areas laterally and at depth, guiding future exploration success.

Key Details

• Contractor: Ronacher McKenzie Geoscience Inc. (RMG) has been contracted to review company data and provide a new structural interpretation.
• Scope of Analysis: The review covers 5.5 kilometers of east-west mineralized structure.
• Exploration Status: 80% of the 5.5-kilometer structure is largely unexplored.
• Data Sources: The study will utilize public and company geophysical, geological, and cultural data, including:
  • Drill database from over 150,000 meters of drilling (company data since 2007).
  • Historic drill data from the 1990s.
• Strategic Goal: To develop geological knowledge of the entire property by tying existing knowledge from the high-density drilled area (southwestern part, near the past-producing mine) to underexplored claims laterally and to depth.
• Current Drilling Activity:
  • Total program size: 120,000 meters.
  • Completed: 20,000 meters.
  • Status: Drills are currently paused to allow the technical team to evaluate and assimilate existing data while waiting for improved market conditions.
• Mineral Resource Estimate (as of Aug 22, 2022):
  • Measured and Indicated: 543,000 ounces of gold (8.22 million tonnes at 2.05 g/t Au) at a cut-off of 0.55 g/t Au (pit-constrained).
  • Inferred: 456,000 ounces of gold (3.01 million tonnes at 4.71 g/t Au) at a cut-off of 2.5 g/t Au (underground).
• Historical Production:
  • 1930s: Produced >50,000 ounces of gold at 10 g/t from two shafts.
  • 1990s: Extracted bulk sample Pit No. 1 (87,311 tonnes at 5.17 g/t Au) and Pit No. 2 (22,095 tonnes at 3.46 g/t Au).
• Qualified Person: Matthew Halliday, PGeo, reviewed and approved the technical information.

Notable Quotes

• "With 80 per cent of the 5.5-kilometre east-west mineralized structure largely unexplored, and with the price of gold now over $4,000 (U.S.) an ounce, which is significantly higher than when the resource estimates for the property were done several years ago, there is potential for a significant resource increase," stated chief executive officer Frank Basa, PEng, Ontario.
• "We are very pleased that RMG has agreed to conduct the review. We have drilled intensively in the southwestern part of the Granada property, near the past-producing mine, to develop a gold resource estimate close to the surface suitable for an open pit. However, developing the structural analysis across the property and tying the existing knowledge from the high-density drilled area to the underexplored claims laterally and to depth will boost the geological knowledge of the entire property."