Gold Bullion Provides Granada Mine Update
VANCOUVER, March 26, 2012 /PRNewswire/ - Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the "Company" or "Gold Bullion") is pleased to provide an update on its Granada Gold Property, located along the prolific Cadillac trend in North-western Quebec, 5 km south of the city of Rouyn-Noranda.
The Company has completed approximately 78,000 metres of drilling resulting in a significant expansion of the LONG Bars zone. The surface footprint has increased 5 fold from the original footprint, 300 metres by 600 metres, to over 750 metres by 1200 metres. In addition to the two historic shafts in the area where current mineralization exploration is being undertaken, there are another 3 historic shafts within a 6.8 km strike length to the east indicating that less than 20 percent of the potential Granada strike length has been explored to date.
Another 3.3 to 6.8 km is also open to exploration on the eastern Adanac Extension of the Granada Mine land holdings. Between this and the Granada Eastern Extension, is a 5.2 km area that Osisko Mining Corporation is currently exploring which already has historical drill sections. These sections confirm further mineralization to the east of Gold Bullion's Eastern Extension and extends the mineralized trend eastwards to Gold Bullion's eastern Adanac Extension property.
As such, the overall potential strike length of Gold Bullion's land holdings ranges from 10.1 to 13.6 km with no exploration undertaken to date on the eastern Adanac Extension. The current drill program is focused on evaluating the extent of the mineralization to the north and at depth.
Hole GR-11-390, the northern most hole drilled by Gold Bullion to date, encountered three significant mineralized sections of interest as follows:
|GR-11-390||From (m)||To (m)||Length (m)||Grade (g/t Au)|
These are probable extensions of veins, deformation zones and alteration zones identified from recent and historic drilling at shallower depths. Work at Granada has shown that gold mineralization on the property occurs in veins and along contact of deformed conglomerate clasts and in alteration zones. The current drill program plan is for 3 holes with a wedge in each giving 6 pierce points through the projected mineralized zone.
Roughly 6,560 metres will be drilled with the goal of intersecting mineralization at depth in order to evaluate a potential down dip depth of over 2,000 metres at 50 to 70 degrees dip to the north. Of this total down dip length, we have thus far encountered gold mineralization of interest along 650 metres. As such, in theory, just 32.5 percent has been explored to date. The objective is to hit a minimum of 2 of the 5 known mineralized zones with thickness greater than 3 metres and grades at or above 3 g/t Au.
Near surface, the Company is in the exploration range for low-grade deposits of 10 to 20 ounces per metre drilled as compared to Osisko at 6,846 holes drilled for 789,707 metres at 1.37 grams per tonne for 8.6 million ounces of gold and Detour at 5,877 holes drilled for 889,520 meters at 1.08 grams per tonne for 17.67 million ounces of gold. Their respective ounces per meter drilled are 10.89 for Osisko and 19.86 for Detour. The Company is using this rule of thumb and expects to be in the lower range for the LONG Bars Zone of which overall approximately only 10 percent has been explored thus far.
The Company will release a NI 43-101 compliant resource estimate in the first quarter of 2012 being prepared with 321 of the 404 holes drilled to date. A total of 56,315 metres of the roughly 78,000 metres drilled so far are being utilized in the calculation of this first resource estimate. Gold Bullion plans to include the remainder of the drill data, inclusive of current drilling, into an additional or updated resource calculation to be released at a later date.
The balance of the Granada property still remains to be explored, with 3 other primary target areas that have been defined on the 11,000 hectare land holding.
The ongoing metallurgical test work has confirmed high gold recovery rates exceeding 90 percent, achieved via conventional gravity recovery followed by cyanidation. These results stem from the initial bulk sample undertaken in 2007 when 28,000 tonnes of mineralized material was processed and the work under taken by Gekko Systems and SGS Lakefield.
Gold Bullion is also undertaking baseline and hydro-geological studies in accordance with prerequisite regulatory requirements for issuance of a certificate of approval.
Claude Duplessis, Eng. is acting as the qualified person (QP) for Gold Bullion Development Corp. in compliance with National Instrument 43-101 and has reviewed the technical contents of this press release.
Gold Bullion's management hope you can attend the Annual General Meeting scheduled for April 12, 2012 in Montreal, Quebec and look forward to meeting those able to make it. For further details please contact our head office in Montreal at 1-514-397-4000.
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. Additional information on the company's Granada gold property is available by visiting their 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.