Granada Gold Mine announces that its Board of Directors has selected Ausenco Ltd to commence a feasibility study for the development of a producing mine with a capacity of 80,000-to-100,000 oz of gold per year at its 100-percent-owned Granada property, located in Quebec in the town of Rouyn-Noranda.

In the meantime, the company has signed a provisional milling agreement with Canada Cobalt Works to process an initial 600,000 to 2,000,000 t of mineralised 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 realised 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 t/d mill at the Castle mine site in Gowganda, Ontario 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 Moz 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 (issue date June 30, 2017, with effective date of May 16, 2017, from GoldMinds Geoservices Inc.).

“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.”