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Ausenco to conduct feasibility study for open pit mine

April 6, 2018  

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Granada Gold Mine has selected Ausenco Limited to conduct a feasibility study for the development of a producing mine with a capacity of 80,000-to-100,000 ounces of gold per year at its Granada property in Rouyn-Noranda, Que.

“Ausenco has a reputation for innovation and efficiency, and in fact sponsored PDAC’s #disruptmining event this year along with Goldcorp, they also successfully assist Atlantic Gold Corporation in their similar project in Eastern Canada ” said Frank J. Baša, Granada’s President and CEO.  “We are anticipating that their fresh approach will help us move at a good pace to move us forward in our focus on production.”

The study will focus on the pit-constrained resource of 807,700 ounces M&I at 1.16 g/t Au, comprising 625,000 ounces measured at 1.14 g/t Au and 182,700 ounces Indicated at 1.26 g/t Au with a cut-off grade of 0.39 g/t Au. The company has undertaken and completed all the required environmental studies and obtained the required permits to be a producer under its original “Rolling Start” program.

In the meantime, the Company has signed a provisional milling agreement with Canada Cobalt Works (TSX-V: CCW) to process an initial 600,000-to-2,000,000 tonnes of mineralized material at a grade of 4.5 g/t Au. Granada Gold Mines completed a Pre-Feasibility Study (PFS) in 2014 with mineral reserves identified.

The company also realized a mineral resources update in June 2017.  Canada Cobalt Works has retained the engineering firm Wood Group to undertake the necessary studies to obtain the required permits to install a 600-tonne-per-day mill at the Castle mine site in Gowganda, Ont. to process the identified mineral reserves of the 2014 PFS.

These activities are intended also to provide a ramp to production for the company’s high-grade, underground maiden resource, located immediately north of a near-surface deposit, showing 1.5 million ounces of gold averaging 4.56 g/t gold Inferred at a cut-off of 1.5 g/t Au., according to a 43-101 Mineral Resource Estimation Update.

(Granada Gold Mine Inc.)