Page 50 By Gregory Reynolds The future looks bright for Granada Gold Mine Inc as it works on a for mer producing gold mine property ln Quebec to increase a known resource Granada raised over 2 million in an oversubscribed placement in January for use towards a trenching and drill ing program as well as to advance a bankable Feasibility Study It has been a busy year for Granada After under going a rebranding in ear ly 2017 the company put drills in the ground at its Granada gold project to further defne the resource In addit ion shareholders are being re warded with a dividend payment Granada s shareholders will receive a small dividend thanks to the spinout of Canada Cobalt W orks Inc CCW in 2016 When Granada Gold Mine goes into production the next dividend share holders will be getting will be based on a 3 net smelter return payable for the life of mine Even if anothe r company trie s to ac quire Granada only the shareholders will be entitled to that dividend not that company Frank Basa CEO of Granada explained in April The royalty is set up the same way right now if you calculate it a fve millionounce deposit is worth al most 260 and were trading around 030 Perhaps most signifcantly the com pany signed a provisional agreement with CCW to build a mill to process 579000 tonnes with an option for up to two million tonnes of ore over a threeyear period Basa says we are severely underval ued If you look at any other company that has put a mine into production in the 80000 to 100000 ounce a year range they all have a market capital ization of over 200 million The company s key asset is the Grana da gold project near RouynNoranda in the Abitibi Region an area that hosts worldclass gold mines such as Agnico Eagle s LaRonde and Malar tic a 5050 joint venture with Agnico and Y amana Granada s current Measured and In dicated Mineral Resource Estimate shows 807700 inpit constrained ounces of gold at a grade of 116 grams per tonne In addit ion there remains another 15 million ounces of under ground In ferred Mineral Resource with grades of 456 grams per tonne Management believes this number will increase due to the amount of native gold on the property up to 70 Granada alread y had permits in place to creat e a small operation but an ob stacle was fnding a mill capable of handling the tonnage That obstacle was overcome in September 2017 when GGM signed an agreem ent with CCW located just across the provin cial border in Gowganda Ontario CCW will build a small mill on their property capable of handling two mil lion tonnes over three years W ith the agreement in place Granada plans to commit a small drill program on a deposit known as Aukeko on the Granada property The former producing mine there took out about a 300tonne bulk sample at about fve ounces per tonne GGM s goal is to fnd the extension of those highgrade zones At the same time the company is planning a deepe r drill program on the rest of the property to convert Inferred ounc es into Measured and Indicated The next milestone is a bankable Feasibil ity Study expected to be rele ased by the end of 2018 Currently the top exploration prior ity is a new zone that management has dubbed the Genesis T ar get The biblical reference is deliberate Based on GGM s most recent geological modelling the company now suspects that this zone may represent the origin or focal point of gold mineralization on this land package CEO Basa refers to Genesis as po tentially the heat engine for gold mineralization Other factors that canshould boost the Genesis resource much higher are 1Expanding the size of the deposit at depth 2Infll drilling for resource conver sion from Inferred to Measured and Indicated 3Improving grades at depth Longer term the company s plan is to develop the Granada project and cre ate value in the ground for investors W e raised a couple of mill ion dol lars and will have plenty of money to spend even afte r our Feasibili ty said Basa There s a lot for investors to con sider The dividend the Feasibility Study coming out and the potential for another two million under ground highgrade ounces at 46 grams per tonne W ere just getting going here T oday an important variable is power costs Based in Quebec GGM ben efts from what are perhaps the low est power costs for mining operations anywhere in North America W ith abundant hydroelectric power and a strong commitment to mining Quebec ofers the most mining friendly rate structure for electricity This has been a reality in Quebec for many years What has changed more recently is the mining industry itself specifcally under ground mining T wentyfrst century mining technol ogy is producing numerous innova tions gets drills in ground makes deal for milling Granada