Gold Bullion Continues Drilling for Bulk Tonnage Gold Potential at Granada, Quebec
Mailing Address:
1868 King George Highway, South Surrey, BC, V4A 5A1 Phone: 604-306-8854 Fax 604-535-4454
NEWS RELEASE
GOLD BULLION CONTINUES DRILLING FOR BULK TONNAGE GOLD POTENTIAL AT GRANADA, QUEBEC
January 26, 2010 - Gold Bullion Development Corp. (the "Company" or “Gold Bullion”, TSX.V: GBB) has released partial assay results for the first phase of drilling at the Granada Gold Mine property located approximately 6 km south of Rouyn-Noranda, Quebec. The drill program was completed in two phases. A total of 11 holes and 1026 metres were completed in December, 2009 with a further 14 holes totaling 1791 metres completed in January, 2010.
All holes intersected significant intense silicification and sericitization alteration associated with quartz veining in sediments and porphyritic felsic intrusives. Most holes have had visible gold associated with quartz veining and detailed logging is progressing. A total of 593.45 metres were sampled of the 1026 metres drilled in 2009 representing 57.84% of the total drilled. A total of 664 samples have been sent for assay from the first 11 holes completed in December 2009. To date, only the first 224 results have been received. All samples are being assayed for gold. Two holes, one through each of the two historic main structures, are being assayed for silver, copper and nickel in addition to gold. Because nickel and copper were detected during the processing a large bulk sample in 2007, the Company is attempting to identify whether the potential exists for low grade copper and nickel to create a gold equivalent value to augment the gold grade on site. To date, only half the base metal results have been received. The remaining base metal values are expected shortly. All drill holes were planned to intercept the north-dipping vein structures at high angles. No intersections are actual true width. Initial gold assay results from the first three holes contain mineralized intercepts as follows:
- 61.7 metres grading 0.38 g/t Au from 6.3 – 68.0m including 7.4 metres of 1.07g.t Au from 6.3 – 13.7m and 14.7m of 1.6g/t Au from 40.5 to 55.2m in hole GR-09-01;
- 32.5 metres grading 1.74 g/t* Au from 15.5 – 48.0m including 3.5metres of 1.42g/t Au from 15.5
- 19.0m and 16.9m of 1.96g/t * Au from 31.1 – 48.0m in hole GR-09-02;
- 52.1 metres grading 0.175g/t Au from 4.4 – 56.5m including 13.0 metres of 0.619g/t Au from 20.5 – 33.5m in hole GR-09-03.
- A high-grade sample assaying 96.6 g/t Au over 30 cm drilled from 40.7 metres to 41.0 metres was
cut to 30 g/t for calculating this weighted average interval. Using the uncut value, the interval grades 3.15 g/t Au over 16.9 metres and 1.79g/t over 32.5 metres.
These first three holes were drilled east of Pit No.1 to ascertain whether the grade extended beyond the existing Pit. The initial and partial results are encouraging in that they provide an extension possibility to the No.1 Pit and indicate a need to re-evaluate the historic assay intersections peripheral to the Pit with a new consideration of large tonnage - lower grade potential. Historically, only mineralized and altered sections were sampled. To properly evaluate the large tonnage – lower grade possibility, assaying of previously unsampled intervals will be undertaken.
SUMMARY OF DRILL RESULTS
| HOLE | FROM | TO | INTERVAL | GOLD |
|---|---|---|---|---|
| (m) | (m) | (m) | (g/t) | |
| GR-09-01 | 6.30 | 68.00 | 61.70 | 0.56 |
| including | 6.30 | 13.70 | 7.40 | 1.07 |
| and | 40.50 | 55.20 | 14.70 | 1.605g |
| GR-09-02 | 15.50 | 48.00 | 32.50 | 1.742 * |
| including | 15.50 | 19.00 | 3.50 | 1.42 |
| and including | 31.10 | 48.00 | 16.90 | 1.964 * |
| GR-09-03 | 4.40 | 56.50 | 52.10 | 0.175 |
| including | 4.40 | 8.35 | 3.95 | 0.05 |
| and including | 20.50 | 33.50 | 13.00 | 0.62 |
| including | 21.95 | 29.60 | 7.65 | 1.00 |
| and including | 44.00 | 56.50 | 12.50 | 0.07 |
- Interval 40.7 metres to 41.0 metres assaying 96.6 g/t Au was cut to 30 g/t Au for the purposes
of this calculation.
Background
Gold Bullion entered into a Lease and Purchase Agreement with Mousseau Tremblay Inc. on July 4, 2006, as further amended, to acquire a 100% interest in the Granada Mine located in Rouyn-Noranda, Quebec. The terms include $350,000 cash and lease payments, plus a 3% NSR with a 1.5% buyout for $1 million. The Company has paid 175,000 on signing and entered into a monthly lease payment of 5,000 dollars per month during the evaluation stage of the property. The Company can buy out the remainder at anytime.
On March 20, 2008 Gold Bullion entered into an additional memorandum of understanding to acquire from Mousseau Tremblay Inc. an additional block of 25 claims in consideration for a total of 500,000 common shares, at a deemed value of 15 cents. This transaction increases the total surface area from 71.32 hectares to 1,095.59 hectares. In addition, the Company will enter into an agreement to reprocess surface tailings with MTI.
Gold Bullion has completed additional staking in the area of its Granada Gold Mine property. The new claims are in three blocks totaling 21 claims (1,024 hectares), all with excellent road access. One of the blocks comprises claims overlying the same geological unit as that hosting the gold mineralization at the Granada Gold mine.
Historical data indicates that past production at the Granada Mine has been from narrow high-grade quartz veins from two shafts. In 1994, A.C.A. Howe International Ltd. calculated (before National Instrument 43-101) the following resources:
- Proven and probable resources on the No. 1 zone are estimated to amount to 109,931 tonnes at a grade of 3.72 grams per tonne gold.
- Proven and probable resources on the No. 2 zone are estimated to amount to 593,104 tonnes at grade of 3.41 grams per tonne gold to an average depth of 100 meters.
- Within the patented claim block, a resource potential of roughly 1,677,812 tonnes at a grade of around 3.7 grams per tonne gold is estimated to be contained within a number of targets on or adjacent to the known structures.
The resource estimate cited above predates, and therefore does not conform to, the more stringent reporting requirements of National Instrument 43-101 and should not be relied upon regarding the historical resource estimate according to those standards. The Company has not done sufficient work yet to verify or classify the historical estimates as a current mineral resource and the Company is not treating the historical estimates as a current mineral reserve or resource. The Company believes that the historical estimates provide a favourable indication of the gold potential of the property, but should not be relied upon, and will embark on an exploration program of the original five veins in order to quantify new resources and upgrade historical resources to National Instrument 43-101 compliance.
Gold Bullion undertook a surface bulk sample and recovered 40.43 kg (1,304.33 troy oz) of fine gold from the mineralized zone within the No. 2 vein structure. The Company processed the mill feed at the on-site mill at the Granada Gold Mine in Granada, Quebec, during the first and second quarters of 2007. The Company mined 139,471.39 dry metric tonnes, of which 29,948.49 dry metric tonnes were processed as mill feed.
Bulk test mining and processing highlights are as follows:
- Calculated recovered gold grade of mill feed of 1.62 grams per tonnes is 20.0 per cent above average mill head grade of 1.35 grams per tonne due to free gold content;
- Strong mill-feed continuity beyond the previously defined mineralized zones and drilled intersections of the past exploration programs;
- Milling recoveries remain very high at 89.76 per cent with no increase in operational costs or decrease in throughput of the plant.
Gold Bullion also undertook the sampling and assaying of the waste pile which currently overlies a portion of Vein 1; samples were taken with a four-cubic-yard loader. Two separate sampling programs of 19 samples each were completed. An approximately 20 kilogram representative sample from each of these were sent to Swastika Laboratories Ltd. in Swastika, Ontario, where a one-assay-ton aliquot (a 29.2gram subsample) is used for fire assaying with an atomic absorption (AA) or gravimetric finish to determine gold concentration. Swastika Laboratories Ltd. runs its own duplicate and triplicate assay checks for quality control, and includes the use of blanks, duplicates and standards in every batch of samples. The average assays are in the table.
Program Gold (g/t) Gold (oz/ton)
| 1 | 2.50 | 0.073 |
| 2 | 0.96 | 0.028 |
| Average | 1.75 | 0.051 |
A total of 456 surface drill holes amounting to 25,920 metres (84,051 feet) has been integrated into a database. A 3-D model has been generated and is accessible via Autocad. The underground drill holes have not been integrated for the moment as the Company is focused on areas near surface. The Company will eventually look at the possibility of an underground operation. The model to date has focused on only two vein structures. There are six known vein structures with a potential of three more identified by Genivar.
Significant historic intersections assayed only the vein intersections. Results from Gold Bullion's bulk sample testwork in 2007 suggest that significant gold mineralization also exists in the wall rock between the higher grade vein structures. Re-evaluation of sampling across the entire vein zone in select holes indicates that low-grade mineralization persists throughout this zone consisting of a total of at least nine identified vein structures. So far, grades of 0.549 grams gold per tonne over 51.27 metres in hole 93-186, up to 0.857 gram gold per tonne over 59.44 m in hole 93-188 have been identified. This drill program is planned to drill through the wider vein zone. It is anticipated that expanded sampling of the entire hole will identify both vein structures as well as a wider, lower grade vein zone envelope. This drilling will begin the process of grid drilling to help define resources.
Sampling quality analysis and quality control
The drill program and drill core sampling, including the quality assurance/quality control program, was supervised by Nicole Rioux, P.Geo., Genivar, Gold Bullion’s geological consultants. Core was first logged then split in half using a diamond core saw by personnel at Services Technominex Inc. in Rouyn- Noranda. Each box was photographed prior to sampling. Half-core samples were bagged, security sealed and transported by Services Technominex Inc. personnel to Laboratoire Expert Inc. in Rouyn-Noranda for analysis. Gold was assayed with fire assay and atomic absorption finish with additional metallic gravimetric analysis on samples where visible gold was identified. Silver was analyzed with aqua regia digestion and AA finish. Laboratoire Expert's quality-control system complies with international standards ISO 9001:2000 and ISO 17025:2005. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the insertion of blind certified standard reference material and blanks into the sample stream at regular intervals by Gold Bullion and Genivar personnel in order to independently assess analytical accuracy.
Qualified person
The scientific and technical information in this release was prepared under the supervision of Frank J Basa, P.Eng., Gold Bullion's president, who is a member of the Association of Professional Engineers Ontario, and a "qualified person" in accordance with National Instrument 43-101.
Frank J. Basa President and Chief Executive Officer
For further information contact:
Frank J Basa P.Eng., President & CEO, 1-416-625-2342 Roger Thomas, Director, 1-613-292-2438
Neither the TSX Venture Exchange nor its Regulation Services 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 forwardlooking 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.