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Granada Gold Mine ponders on-site milling

Bulk mining at the Granada gold project, June 2020. Credit: Granada Gold Mine

Granada Gold Mine (TSXV: GGM) has engaged SGS Canada for metallurgical and environmental studies for on-site milling at its Granada project near Rouyn-Noranda, Quebec.

SGS will explore processing the Granada gold ore with the addition of calcite with gravity and cyanidation of the gravity tails, as well as a flowsheet with gravity and flotation circuits for the production of gold sulphide concentrates. The studies are set to begin this month.

Granada will use the findings of the studies to apply for a modification of its permits. Granada’s existing Quebec certificate of authorization allows for open pit mining of up to 8,000 t/d and custom milling of 550 t/d at a local mill.

Earlier this year, Granada recalculated the historic open pit resource at the deposit using a 2 g/t gold cutoff and the underground resource using a 4 g/t cutoff. Since then, 30,000 additional metres have been drilled, and the results indicate the presence of more contained gold than was calculated historically.

“The combined potential impact of these developments is a positive change in the processing economics of the project,” Granada president and CEO Frank J. Basa said in a release. “We have therefore decided to begin the process for amending the existing permits to enable on-site milling.”

In January 2021, Granada released open pit and underground resources for the deposit. Measured and indicated pit resources were 5.1 million tonnes grading 2.06 g/t gold for 339,0000 oz., and inferred pit resources were 34,000 tonnes grading 11.29 g/t gold for 12,000 oz. The underground measured and indicated resources were 844,000 grading 4.03 g/t gold for 109,000 oz., plus an underground inferred resource of 1.2 million tonnes grading 6.33 g/t for 253,000 oz.

Since the last resource updated was completed, the company has completed 30,000 metres of a planned 120,000-metre drill program. The results of the latest drilling will be used to further update the resource estimate in the first quarter of 2022.

(This article first appeared in the Canadian Mining Journal)