Gold Bullion Provides Operations and Finance Update
2875 Ave Granada Rouyn Noranda, Québec J9Y 1J1 Tel: 819-797-4144 / Fax: 819-762-2306
GOLD BULLION PROVIDES OPERATIONS AND FINANCE UPDATE
November 6, 2015 - Gold Bullion Development Corp. (TSX-V: GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) is pleased to report trenching is about to start on the Granada gold property near the historic Aukeko Shaft area located 2 km east of the initial production pit as previously announced in the May 26th, 2015 news release. The total possible strike length of the mineralized area currently stands at 3.5 km from the westernmost drilling to the proposed trenching location near the Aukeko shaft.
Historical data noted considerable visible gold in the Aukeko vein at the bottom of the Aukeko shaft with previous geological mapping detecting numerous easterly striking syenite porphyry "dykes" and quartz veins similar to what has been observed at the LONG Bars zone. A 1938 report by Hesse noted several vein zones with veins ranging in width from stringers to two feet within shear zones. Nearly all the veins showed visible gold, (Willoughby, 1994 GM52851). This same report references an opening described as a 120-foot (36.6-m) thought to be the eastern extension on the Aukeko Vein located 50-150 metres east of the Aukeko Shaft. The average grade of the three bulk samples taken from this area in 1938 was reported as 7.00 oz. Au/st (239.9 g/t) (Willoughby, 1994). Trenching in this area will see five trenches up to 100 metres in length, which will provide a cross section of the Aukeko Vein zones and assist in better defining the character of the mineralization and alteration. The resulting information will then be used to evaluate the justification for planning a diamond drill program for this area. Trenching is to commence as soon as all trenching related permits and authorizations are received.
Financing
The Company is also pleased to report it has entered into an arm’s length non-dilutive loan agreement with an existing shareholder to borrow $200,000. This loan agreement is structured over a three-year term at an interest rate of 8% calculated monthly and payable annually. The loan will automatically renew for an additional three-year term until such time as the lender terminates the agreement. The outstanding loan balance, together with accrued interest, remains subject to repayment in full at any time at the discretion of the lender with the Granada Gold property to be registered as security against the loan.
The lender also has the option to obtain loan interest and principal repayments in gold rather than cash with the gold valued at US $ 800 per ounce but can only exercise this option on or after the maturity date of the initial three-year term. Should the lender exercise his demand option for repayment prior to the initial three-year term, payment shall be in cash and not in gold even if the Company has commenced commercial production by that time. The lender also has the option to participate in future financings but is not obliged to do so.
No finder’s fees were paid in relation to this loan arrangement. This agreement remains subject to approval of the TSX Venture Exchange.
Frank Basa, President and CEO of Gold Bullion, “This second non-dilutive financing is timely and will be used to complete outstanding matters for the Certificate of Authorization and to continue with preparing mineralized material for transport and processing.”
Qualified Person
Technical information in this news release has been reviewed and approved by Claude Duplessis, Eng. PEO, a consulting engineer with GoldMinds Geoservices Inc., from Quebec City, Quebec, Canada, an independent Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior natural resource company engaged in the exploration and development of its 100% owned Granada Gold Property located on the prolific Cadillac Trend near Rouyn-Noranda, Québec. Initial gold mining operations will be focussed on high grade near surface material identified in the 2014 PFS. Prepared rock is to be transported to Iamgold’s nearby facility for processing with project economics forecasting all in cash costs at US $797 per ounce. The Company has been systematically advancing the Granada property since acquiring the previously producing gold mine in 2006. The latest resource update at a 1 g/t Au range base case is 833,477 ounces gold Measured at 0.90 g/t Au in 30.4 M tonnes, 753,811 ounces gold Indicated at 0.96 g/t Au in 26.5 M tonnes and 1.6 million ounces Inferred at 0.99 g/t Au in 51.5 M tonnes using a cut off grade of 0.30 g/t. Additional information on the Company 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 For further information contact:
Frank J. Basa, P. Eng., President and CEO at 1-819-797-4144 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. Forwardlooking 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.