GOLD: Granada chooses Ausenco for mine study

[caption id="attachment_1003722733" align="aligncenter" width="483"] Site of the former and future Granada gold mine at Rouyn-Noranda, Que. (Image: Granada Gold Mine)[/caption] QUEBEC – Granada Gold Mine of Rouyn Noranda, Q.C., is moving forward with the feasibility study for its Granada mine in the town. The company  has selected Ausenco Limited to create a feasibility study for an open pit with annual production of 80,000 to 100,000 oz. of gold. Granada says the study will consider pit-constrained resources of 12.6 million measured and indicated oz. at 1.16 g/t gold with a cut-off grade of 0.39 g/t gold for 807,700 contained oz.. The company has completed all the necessary  environmental studies and obtained the required permits to carry out its rolling start program, initially in the pit. Granada has also signed a provision milling agreement with Canada Cobalt Works to treat an initial 600,000 to 2.0  million tonnes of mineralized material grading 4.5 g/t gold. Canada Cobalt has retained Wood Group to undertake the necessary studies for obtaining permits for a 600-t/d mill at Canada Cobalt’s Castle mine in Gowganda, Ont. These activities are intended to allow Granada to ease into production at its high grade underground mine immediately north of the pit. The initial inferred underground resource is 10.4 million tonnes grading 4.56 g/t gold at a cut-off of 1.5 g/t. There are 1.5 million oz. of contained gold. The Granada property includes the historic Granada gold mine that produced about 50,000 oz. of gold before a fire destroyed the surface buildings. Read more at www.GranadaGoldMine.com.