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Granada Gold Mine Inc. V.GGM

Alternate Symbol(s):  GBBFF

Granada Gold Mine Inc. is a Canada-based junior mining and exploration company. The Company is engaged in developing and exploring its 100% owned Granada Gold Property near Rouyn-Noranda, Quebec, which is adjacent to the Cadillac Break. The Granada Gold Property is located five kilometers south of the mining community of Rouyn-Noranda, Quebec. The property includes the former Granada Gold underground mine. The Company owns about 14.73 square kilometers of land in a combination of mining leases and claims. This near-surface and underground gold deposit, with the added discovery of a Rubidium (alkali metal) deposit, is located 15 minutes from Rouyn-Noranda, Quebec.


TSXV:GGM - Post by User

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Post by taylor1988on Oct 20, 2011 12:20pm
308 Views
Post# 19167016

Fundamental value

Fundamental valueWe all know there have been delays and the timeline here has not played out like most anticipated but the value that GBB presents at these levels is incredible. GBB has drilled over 75,000 metres on their Granada project yet some investors here are looking to sell down here before they even see the results of the 24/7 drilling for the past 18 months. Based on the Howe Report done GBB has over 70,000 ozs of P & P reserves at over 3 g/t au. If GBB were to mill this gold to raise money which is certainly a possibility, the value of gold that would be milled would equate to double our current market cap. That's assuming nothing for the Resource Estimate that will be unveiled at Granada later this year. No one seems to want to talk about all the positives this company has going for it... OSK securing 70% of THG's Adanac deposit next door... Bulk sample grades showing 1.6 g/t au and 225% more than average drill grades and gold recoveries of 93% + on gold grades as low as 0.6 g/t au. This may be a radical thought for some but what actually matters in a mine is what the mill grade comes out to, not what the drill results are showing (as Frank as stated SEVERAL times he is trying to define a structure which he has yet to find the extent of thus far). If our average drill grades are 0.7 g/t au but our average bulk sample grades are showing over 1.60 g/t au, then can we not assume that the mill grade on gold in the 0.7 g/t range for drills will be milled at a grade closer to 1.0 g/t au? If that's the case then all our "uneconomic" drill holes of 0.35 - 0.6 g/t au could actually move to the 0.5 - 0.6 g/t au range when milled and have 93% recovery? If you are long this play and believe in seeing GBB through to production then we've got everything we need to mine gold and be successful at Granada. GBB is 5 km south of Rouyn-Noranda, has a resource of potentially 3 million ounces of gold which can be open-pit mined, and was historically mined underground at grades of up to 10 g/t au. People can call this a low-grade P.O.S. all they want but I'll let the bulk samples do the talking rather than drill grades when it's to the tune of a 30,000 tonne bulk sample and once again like I've stated if we were away from infrastructure in Chile (Andina) or in a Fort Knox type scenario in Alaska (Kinross) I would have my doubts, but with gold at $1600 / oz and our operations less than 5 km from a skilled labour force this is not some low-grade bulk tonnage operation in the Boonies that is not feasible. If you can't stomach holding nor the volatility then it's time you reconsidered your position here but for those who like buying ounces of gold in Quebec for less than $15 / oz there is tremendous value at these prices.
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