ROUYN-NORANDA, QC, Dec. 2, 2016 /CNW/ - Gold Bullion Development
Corp. (TSX-V: GBB) (OTCPINK: GBBFF) (Frankfurt B6D) (the "Company" or "Gold
Bullion") today announced that it has commenced an 8,000-metre
deep-hole diamond drilling program targeting a significant
expansion of mineral resources in the northern part of the
Granada gold property.
The first two drill holes of this program will test the
Granada vein system north of the
existing pits at a depth of up to 1,200 metres downhole length
(approximately 850 metres vertical depth). Drilling will be in
areas that had not been previously included in reported mineral
resources.
The deep-hole drilling will be in the sector of three previously
reported drilled holes which had indicated gold intercepts as
follows (all downhole lengths):
- DUP12-02 intersected 9.13 g/t over 1.5 m at 992.5m
- DUP12-03W2 intersected 8.13 g/t over 1.0m at 661.5m
- GR-11-241 intersected 3.31 over 3m at 283m.
The planned two drill holes of the program that started this
week will be 275m east of DUP12-03AW2, 200m south of DUP-12-02, and
215m north of GR-11-241.
Other holes have been scheduled to similarly fill the gap in
resource knowledge at depth in other areas to the north of the
existing pits, with a minimum of two holes per set-up. The drilling
is expected to take three months.
Gold Bullion carried out extensive drilling at Granada, including two deep holes, between
2009 and 2012 to establish a mineral resource for the deposit. The
company then paused drilling to complete a preliminary feasibility
study and permitting work for the initial mining phase known as the
"Rolling Start".
In September 2016, Gold Bullion
resumed exploration drilling with a 2,500-metre program which was
completed in October. Preliminary results were published in a news
release November 9, 2016 which can be
viewed at
http://www.goldbulliondevelopmentcorp.com/documents/press-releases/2016-11-09%20GBB%20NR%20drill%20results.pdf
The Company plans to continue drilling for the next two years
with a target of almost doubling the size of the deposit. The
potential 5.5 km strike length identified on the property still
remains approximately 80% unexplored.
As part of the new exploration program, Gold Bullion is
targeting a pit-constrained target of 88 to 93 million tonnes at 1
gram per tonne gold plus another 10 to 20 million tonnes at 3 grams
per tonne gold underground. The potential quantity and grade
reported as targeted exploration target is conceptual in nature.
There has been insufficient exploration to define a mineral
resource and it is uncertain if further exploration will result in
the target being delineated as a mineral resource.
Based on almost 90,000 metres of drilling, the existing 2012
resource estimate for the Granada
property is as follows: measured and indicated resource is
1,605,000 ounces of gold (47.475 million tonnes grading 1.05 g/t
Au), and inferred resource is 1,033,000 ounces gold (29.975 million
tonnes grading 1.07 g/t Au) using a cut-off grade of 0.40 g/t. This
estimate is contained in NI 43-101 Technical Report Granada gold
project Resource estimate update Rouyn
Noranda, Abitibi, Quebec,
published January 3, 2013 with
effective date of November 15, 2012.
Claude Duplessis, Eng., and Gilbert Rousseau, Eng., are the
independent qualified persons in accordance with National
Instrument 43-101.
The 8,000-metre exploration program focuses on sections of the
Granada property that were not
included in the 2012 resource estimate. Therefore, the drilling
results, if successful, could potentially add to the numbers
previously reported.
In addition, an updated resource estimate when it is published
in 2017 in a new 43-101 technical report would also include 400
historical holes that were drilled prior to the Company's
acquisition of the property in 2006, as sufficiently long sections
of the core from the historical holes have been analyzed in work
done since the publication of the 2012 resource
estimate.
In 2014, the Company published a plan to initially mine and
process high-grade, open-pit ore to produce approximately 25,000
ounces per year over three years. This "Rolling Start" initial
phase of reduced-scale mining with ore to be shipped for processing
at local mills was outlined in NI 43-101 Technical Report
Prefeasibility Study (PFS) Phase I – Open Pit Granada Gold Project
Rouyn-Noranda, Quebec, published
June 19, 2014, effective date
May 6, 2014. Claude Duplessis, Eng.,
Gilbert Rousseau, Eng., Jonathan Gagne, Eng., and
Martin Stapinsky, P.Geo., M.Sc.,
Ph.D. are the qualified persons in accordance with National
Instrument 43-101.
The Company obtained all required permits to begin mining in
May 2016 and has begun stripping and
site preparation. The Company plans to continue engineering and
feasibility work in support of its longer term goal of building its
own processing mill and producing 100,000 ounces of gold per year
at Granada.
Qualified Person
Claude Duplessis, P. Eng., of
Goldminds Geoservices Inc., a geological, environmental and mining
consultant, is an independent qualified person in accordance with
National Instrument 43-101, and has approved the contents of this
news release.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is developing the Granada Gold
Property near Rouyn-Noranda,
Quebec. The property includes the former Granada gold mine which 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 has been the
source of more than 50 million ounces of gold produced in the past
century on a line running from Val-d'Or to Rouyn-Noranda.
The Company has obtained all necessary permits for the initial
mining phase known as the "Rolling Start" for which stripping has
already begun. Additional information is available at
www.goldbulliondevelopmentcorp.com.
"Frank J. Basa"
Frank J. Basa P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward‐looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward‐looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
SOURCE Gold Bullion Development Corp.