ONTARIO and QUEBEC – Castle Silver Resources and Granada Gold Mine have signed a provisional deal to share that would see gold ore from the Granada mine in Rouyn-Noranda, Que., treated at the historic Castle Silver mill 85 km northwest of the Cobalt silver camp.
Visible gold in a recent rock sample from the Granada mine site. (Image: Granada Gold Mine)
The two companies have agreed to develop a flowsheet for the mill that can process both gold ore and copper-silver mineralization from Castle’s property in Gowanda, Ont.
The terms of the deal outline a batch processing strategy. At least 600,000 tonnes of 4.0 g/t gold ore would be treated at the mill (with Castle as operator) over a three-year period with an option to treat an additional 1.4 million tonnes of pre-concentrated waste rock. Metallurgical tests using a conventional coarse gravity process on waste rock from the Granada site successfully upgraded 0.5 g/t material to a concentrate containing 4.5 g/t gold. This concentrate will be further processed at the Castle mill.
The US$20 million needed to get the mill up and running is to be debt financed.
More information is available at either www.GranadaGoldMine.com or www.CastleSilverResources.com.