Update On Drill Program At Granada

ROUYN NORANDA, QC - Granada Gold Mine Inc. reported an update on its on-going drill program at Granada. Highlights: 2.39 g/t gold over 29m in hole GR-20-111 from 0.0 to 29.0m; 7.72 g/t gold over 4.5m in hole GR-20-112 from 31.0 to 35.5m; and 7.29 g/t gold over 5.02m in hole GR-20-117 from 49.21 to 54.23m. The Company has now drilled a total of 9321.38 meters of the drill program of the current 12,000-meter program with 2 drills turning on site.  

Frank J. Basa, P.Eng., President and CEO., "The short-hole drill program, with its 3 objectives, has succeeded in defining further extension of the high-grade zones eastward, near surface.  As well, we intersected the mineralized structure to measure total thickness immediately north of the stripping of the vein extension to the west of bulk zone. Moreover, the other holes have shown the extension to the NNE of the high-grade zone in the mineralized structure. The more we drill, the more gold we find.  The typical Abitibi Gold Belt structure scenario is that there is gold mineralization in several large and smaller extensive, planar structures.  Within the larger structures, there are zones of very high concentration of gold with visible gold observed and measured in the core. It appears that this enrichment is demonstrated on the Granada Property in the eastern blocks of the many senestral NNE faults – as seen in hole GR-20-110.  We are pleased to have intersected  high-grade structures  in GR-20-117 where it has intersected the continuity of the very high-grade bulk zone at Granada - evidenced by the presence of visible gold."

The stripping has confirmed the continuation of the mineralized structure from historical Pit #1 for up to 350m East-West. Pit #1, mined in 1994, extracted 87,311 tonnes grading 5.17 g/t Au. Earlier this year, the Company processed, by conventional gravity concentration, a large 1120-kilogram grab sample taken over a 3-meter strike length in this stripped area, resulting in the recovery of 55.6 g/t native gold.  The native gold component for the Granada Gold Mine has been defined to represent an average of 50% of the recoverable gold. The gold-bearing sulphides were not recovered in that test.