March 3, 2010

Gold Bullion Development: It’s Only Going To Get Better

Yesterday’s 65% move by Gold Bullion (GBB, TSX-V) on massive volume – 10.5 million shares - is clearly a harbinger of things to come for this stock which still trades for less than half the market cap of its northern neighbor, Yorbeau Resources (YRB.A, TSX), which rocketed from 10 cents to 35 cents very quickly last September when it, too, reported a significant discovery. Two rigs are currently working away on Yorbeau’s property.

Based on the flood of emails we were receiving at BullMarketRun yesterday – and who they were from – and reports from various sources, Gold Bullion has caught the attention of the “big boys” – market “power players”.

Gold Bullion’s wide intersections, the mineable grades (some of them similar to Osisko’s Canadian Malartic Deposit), drill hole locations and the astonishingly near-surface mineralization at Granada are key factors driving this exciting new exploration play on the CDNX that was first uncovered at BullMarketRun last December when GBB was a fledgling and virtually ignored 7-cent stock. Our many hours of research on Granada and the area have paid off handsomely and that’s what smart investing is all about. Gold Bullion is now up 171% from when we initiated coverage just over two months ago.

Gold Bullion was drilling for “structure” and came up with stellar holes – #12 was 300 metres southwest of #17, and number 17 – which opens up a vast area to the east – was 100 miles southeast of #15 which opens a path to the north toward Yorbeau. Wow. Geologically, it is a fact that the grades are going to get even better with tighter spacing of the drill holes.

This is the real thing, folks, and from a geological standpoint we can’t imagine how it’s not going to get even better. We stated that back in January and we were correct. We are emphasizing that again this morning. The upcoming expanded drill program at Granada is going to be a “whopper”, and Gold Bullion is guided here by one of the best geological groups there is – GENIVAR.

Gold Bullion “gapped up” significantly yesterday and closed strong at 19 cents after making an intra-day high of 20.5. From a technical perspective, the volume and price breakout – underpinned by fundamental factors – has major implications. Gold Bullion is also rapidly closing in on a three-year high of 25 cents as shown on the chart below. A move through 25 cents on heavy volume would be hugely significant from a technical standpoint.

And just in case anyone is silly enough to think this is a “pump-and-dump” and not the real thing, BullMarketRun has confirmed there were NO insider sales of Gold Bullion stock yesterday. Not a single share was sold by insiders into yesterday’s massive volume and price move. What does that tell you?????? What that tells us, and what we clearly understood from our interview Monday that was posted here with Gold Bullion President/CEO Frank Basa, is that insiders have huge faith in this property and its ability to deliver a large bulk tonnage, open pit deposit. That’s encouraging and exciting to know. Insiders control approximately 12% of GBB’s 81 million outstanding shares.