Gold Bullion Development Corp. (“Gold Bullion” or the "Company", TSX.V: GBB). Mr. Frank Basa, the Company’s President and CEO, reports that the Company has released highlights of past, but previously unreported, results of drilling on Vein Zone #1 and Vein Zone #2 at the Granada Gold Mine property, 6 km south of Rouyn-Noranda, Quebec. Planned diamond drilling for the remainder of 2009 and continuing into 2010 will confirm historic drilling highlights and complete necessary drill hole concentration for a complete 43-101 technical report outlining resources. The Company is planning a diamond drilling program to confirm and add to the existing 471 hole data base totaling over 25,900 metres.
The Granada Gold property, although discovered in 1922 and operated in the 1930’s has been most intensely explored between 1984 and 1994 by then-owner KWG Resources Inc. The surface drill results presented below include selected core holes completed by KWG Resources Inc. and SEG Exploration Inc., all in 1993. In all cases, true widths are less than drilled widths. These three holes were drilled at inclinations between -59 and -70 degrees from horizontal at an azimuth of 194 degrees. Holes 93-186 and 93-187 intersected Vein Zone #3 while drill testing Vein Zone #2. On the Granada Gold mine property there are currently 9 vein zones identified trending generally east-west and dipping approximately 50 degrees from horizontal towards the north. These veins are within a larger zone of sub-parallel shear structures associated with the Cadillac fault which traverses the northern portion of the property. The results below indicate that there is significant gold mineralization within the larger shear zone package which incorporates the discreet higher grade veins. This larger, lower-grade envelope is being evaluated for open pit extraction potential. All available historic data has been digitally compiled by Genivar, the Company’s geological consultants, producing a 3D model to work with and to identify areas requiring further exploration and definition. It is expected that future drill programs may further define these and other vein structures identified.
Historic drill results presented in the following table are from the Granada Gold Mine south of Rouyn-Noranda, Quebec:
|Hole No||From (metres)||To (metres)||Interval (metres)||Gold (g/tonne)|
A 139,000 tonne bulk sample was undertaken in 2007 by Gold Bullion, of which 29,000 tonnes was mill feed, yielded 20 percent native gold content. These results were consistent with past historical production data and confirmed the presence of free gold. Calculated recovered gold grade of mill feed of 1.62 grams gold per tonnes is 20.0 per cent above sampled average mill feed grade of 1.35 grams gold per tonnes due to free gold content. The waste from the bulk sample, which included the waste from past production prior to Gold Bullion’s bulk sample program, were also sampled and assayed and yielded an assay of 1.75 grams gold per tonne. The assays of the waste material indicate a larger, lower-grade envelope exists around the more discreet vein structures implying significant gold in the wall rock. The Company plans to evaluate the extent and width of the higher tonnage, lower grade envelope with the upcoming drill program.
Gold Bullion’s present contiguous land holdings are 2 kilometers wide and 7 kilometers long. The exploration reported here represents only 7 percent of Gold Bullion’s current land package. The defined structures are open at depth and open along strike. Gold Bullion has been adding to the land package in the area and expects to develop the property as a large open pit mine.
The Granada Gold Mine Property straddles Temiskaming and Pontiac Group sediments immediately south of the Cadillac Fault which traverses the northern portion of the property. The Cadillac Fault is a major focus for gold mineralization in western Quebec and eastern Ontario. Recently, Osisko Mining Corporation identified and is developing a large open pit 65 kilometers west of the Granada Mine and similarly located with respect to the Cadillac Fault. On its website (http://www.osisko.com/en/exploration/canadian-malartic.html), Osisko Mining Corporation identified current reserves for the Canadian Malartic property as 6.28 million ounces gold (NI 43-101 Proven and Probable Reserves: 5.16 Mt @ 1.14 g/t Au and 178.2 Mt @ 1.06 g/t Au ), plus an indicated resource of 1.4 million ounces gold (NI 43-101 Indicated Resource: 54 Mt @ 0.81 g/t Au ) and an inferred resource (including the Barnat deposit) of 2.75 million ounces gold (NI 43-101 Inferred Resource: 73.7 Mt @ 1.05 g/t Au). The deposit will produce 591,000 ounces of gold per year over a ten-year mine life. Operating costs of US$319 per ounce, ranking it in the lowest cost quartile among global gold producers.