VANCOUVER, Aug. 31 /PRNewswire-FirstCall/ -
Mr. Frank J. Basa reports:
Gold Bullion Development Corp. (GBB, TSX.V) (the "Company" or "Gold Bullion") is pleased to report that Phase 2 drilling continues to expand the LONG Bars Zone Eastern Extension mineralized area at its 100% owned Granada Gold Property in northwestern Quebec. Gold Bullion is aggressively exploring Granada, located five kilometers south of Rouyn-Noranda, as a potential near-surface, open-pit deposit along the prolific "Cadillac Trend" where numerous multi-million ounce deposits have been discovered and developed.
The LONG Bars Zone Eastern Extension is outside the LONG Bars Zone Preliminary Block Model where a significant potential non-compliant resource was detailed in the Company's April 22, 2010, news release.
A total of 41 Phase 2 holes have now been completed in the Eastern Extension covering an area measuring 450 metres north-south and 450 metres east-west. Over the last few weeks GENIVAR, the Company's geological consultant, has had the Eastern Extension drill rig operating mostly in between sections previously drilled to verify their continuity. Large alteration and intrusive zones have been identified in holes north, south, east and west of Phase 1 discovery hole GR-10-17. Visible gold, associated with pyrite and arsenopyrite, has also been observed in feldspar porphyry intrusions particularly in the northern half of the LONG Bars Zone Eastern Extension.
Infill drilling continues within the Preliminary Block Model where 43 Phase 2 holes have been completed (initial assays were released July 29, 2010, and included an interval of 1.07 g/t Au over 123.50 metres in GR-10-33).
A total of 17,000 metres of Phase 2 drilling, 85% of the planned program, has now been completed throughout the LONG Bars Zone (Preliminary Block Model plus the Eastern Extension). Mineralization remains open in all directions.
The Company expects to release additional assay results the week of September 6.
Meanwhile, Gold Bullion is pleased to announce that it has completed a new agreement with Mousseau Tremblay Inc. ("MTI") to acquire the remaining 49% ownership interest from MTI in two mining leases related to the Granada Gold Property.
Pursuant to the terms of a Mining Lease Purchase Agreement dated July 14, 2010, Gold Bullion has acquired the remaining 49% interest in two mining leases from MTI in consideration of a cash payment of $175,000, resulting in a 100% ownership of the leases. The mining leases are subject to a 2% Gross Metal Royalty ("GMR") on the value of all metals produced from the two mining leases, together with a 1% NSR royalty in favour of MTI. Gold Bullion has the right to purchase, at any time, 50% of the GMR for the sum of $1,000,000. This new agreement on the two mining leases replaces a Lease and Purchase Agreement between Gold Bullion and MTI dated July 4, 2006, and amended August 10, 2006, September 20, 2006, and October 19, 2006.
Gold Bullion has also replaced a 2008 Memorandum of Understanding with a Mineral Claims Purchase Agreement with MTI dated July 14, 2010, to acquire a 100% ownership interest in 26 mineral claims (approximately 1,100 hectares) adjacent to the former producing Granada Mine. Pursuant to the agreement and subject to regulatory approval, Gold Bullion will issue 750,000 common shares as payment to MTI. In addition, twenty-three of these mineral claims are subject to a 1% NSR royalty in favor of a previous vendor.
Gold Bullion's total Granada Gold Property land package, 100% controlled by the Company, comprises 4,893 hectares after 2,812 hectares (99 claims) were designated with the Quebec Ministry of Natural Resources earlier this year and recently approved.
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 Gold Property near Rouyn-Noranda, Quebec, and its high grade Castle Silver Mine in Gowganda, Ontario.
For more information on Gold Bullion Development Corp. (TSX-V: GBB, OTC PK: GBBFF), visit our web site: href="http://www.goldbulliondevelopmentcorp.com/">http://www.GoldBullionDevelopmentCorp.com.
The scientific and technical information in this release was prepared under the supervision of Mr. Frank J. Basa, P.Eng., Gold Bullion's CEO and President, who is a member of the Ontario Association of Professional Engineers and a "qualified" person in accordance with National Instrument 43-101.
"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.