Granada Gold Signs Provisional Milling Agreement to Ship Gold-Bearing Ore to Castle Silver Resources - Video Available on InvestmentPitch.com
Vancouver, British Columbia--(Newsfile Corp. - November 2, 2017) - Granada Gold Mine (TSXV: GGM) (FSE: B6D) (OTC Pink: GBBFF) has signed a provisional milling agreement with Castle Silver Resources (TSXV: CSR) (OTCBB: TAKRF) (FSE: 4T9B). Under the terms of the agreement, Granada Gold will ship gold-bearing ore from the Granada Gold Mine near Rouyn-Noranda in Quebec to the advanced Castle Silver Resources' property in Gowganda, Ontario.
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The funding for the mill, to be installed at the historic Castle Silver Mine, will be financed by debt in the amount of US$20 million, which will be facilitated by a family office in the UK.
The terms of the milling agreement provide batch processing a minimum of 600,000 tonnes of 4.0 grams per tonne gold ore from the open pit of the Granada Gold Mine over a three-year period, with an option to treat a further 1.4 million tonnes of pre-concentrated waste rock. Initial metallurgical test work on the Granada Gold Mine's waste rock, using a conventional coarse gravity process, recovered 70 percent of the gold from 0.5 gram per tonne waste rock, to produce 4.5 grams per tonne gravity concentrate, which will be further processed at the Castle Silver Resources' historic mill site.
The company has obtained all necessary permits for the initial mining phase, known as the "Rolling Start", for which stripping has already begun, and has been conducting exploration drilling in order to expand the reported mineral resource for the property. The former Granada gold mine produced more than 50,000 ounces of gold in the 1930s, before a fire destroyed the surface buildings.
The highly prolific Cadillac Trend cuts through the north part of the property. The Cadillac Trend, the source of more than 50 million ounces of gold production over the last century, runs from Val-d'Or to Rouyn-Noranda.
The mill will also process cobalt-silver-bearing mineralization from the Castle Silver Resources' property in Gowganda, Ontario.
Processing of the Granada Gold Mine ore off-site will be treated as a custom milling agreement with a third party and will work within the parameters of the Prefeasibility Study completed in 2014, whereby Castle Silver resources will be the operator of the mill. Granada Gold and Castle Silver share common directors and therefore are related parties.
Granada's shares are trading at $0.04, and with 388 million shares outstanding, the company is capitalized at $15.5 million. For more information, please visit www.granadagoldmine.com, contact Wayne Cheveldayoff, Investor Relations, at 416-710-2410 or email waynecheveldayoff@gmail.com.
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