VANCOUVER,
July 14, 2014 /CNW/ - Gold Bullion
Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the "Company" or
"Gold Bullion") announces it has signed a custom milling agreement
with IAMGOLD to process ore from the Granada gold property at their Westwood Mill facilities. The officers of
both companies have approved this agreement.
This agreement is a win-win situation for both
companies where Gold Bullion will be able to minimize its initial
capital investment and IAMGOLD will be able to utilize some of the
excess mill capacity at Westwood, which is expected to reduce its
overall processing costs.
The signing of this agreement is a significant
milestone for the Company and its shareholders as an efficient,
direct, well-defined path to commercial gold production using
Granada ore via implementation of
the "rolling start" concept.
The agreement provides for and delineates the terms as
follows:
- Receipt of Gold Bullion ore from the Granada project to be processed in 50,000 to
70,000 tonne batches three times per calendar year at the Westwood
site. The annual target is set at 192,000 tonnes. The agreement
anticipates that gold doré bars will be poured at the IAMGOLD mill,
then transported by secure service to the Royal Canadian Mint for
refining, with the finished product then sold as bullion to Scotia
Mocatta, a division of Scotiabank Global Banking and Markets (Bank
of Nova Scotia).
- An initial three-year term with access to additional milling
years subject to CAPEX investment in the mill by Gold Bullion.
- Contract commencement is subject to the following:
-
- Gold Bullion obtaining its Certificate of Authorization from
the proper Quebec authorities for
open pit mining operations at Granada;
- IAMGOLD obtaining its Certificate of Authorization from the
proper Quebec authorities for the
processing of Gold Bullion's ore at their Westwood site;
- Certain CAPEX and OPEX deposit payments prepaid by Gold Bullion
due when both Certificates of Authorization have been granted.
- The Gold Bullion Operations team first goal is to ship a
trial-milling batch of 30,000 tonnes for milling in October 2014 prior to winter freeze up.
Subsequent milling will continue in April
2015.
The gold produced will be sold at Royal Canadian
Mint spot pricing in place at the time of delivery. The estimated
time frames from shipping ore to cash in the Gold Bullion account
could be shortened if Gold Bullion determines the best option is to
sell the unrefined gold doré bars. Based on current
information, the estimated time period for funds being deposited in
Gold Bullion's account after the ore leaves the Granada property is one month.
Gold Bullion also announces the Certificate of
Authorization request was formally submitted to the appropriate
Quebec authorities on June 20, 2014. It is anticipated the
Certificate will be awarded by mid to late September 2014.
Frank J. Basa,
President and Chief Executive Officer, ''As we advance towards gold
production the Company begins the transition into an explorer
producer. This is a huge positive for the Company since
anticipated cash flow from the "rolling start" will give us greater
control over our ability to expand the resource and efficiently
increase gold production as opportunities to do so present
themselves."
Qualified Person
Claude Duplessis,
P. Eng., consultant for SGS, is responsible for validating the
information described herein and has reviewed and approved the
contents of this news release as a Qualified Person independent
of Gold Bullion within the meaning of NI 43-101
regulations.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX
Venture-listed junior natural resource company focusing on the
exploration and development of its Granada Property near
Rouyn-Noranda, Québec, and its
high grade Castle Silver Mine in Gowganda, Ontario. Additional
information on the Company's Granada gold property is available by visiting
the website at www.GoldBullionDevelopmentCorp.com and on
SEDAR.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.