We’ll have more on this in a detailed report later today, but this morning’s Gold Bullion news release has caught our attention in a major way.

During our on-site visit for three days in March, GENIVAR geologists of course were thrilled with the LONG Bars Zone northeast discovery like everyone else. The possibilities going further east and north gives Granada its immense blue sky potential.

What we found interesting, however, was their strong interest in the area just east of Pit #1 – namely, a rather large section that constitutes the waste pile in the northwest part of the Preliminary Block Model. In examining historical and current geological information, they see something significant that they believe they can intersect at depth.

This morning’s Gold Bullion release confirms that the company’s 20,000 metre drill program is now underway at Granada and GENIVAR appears to have taken a very smart and strategic approach: they are testing what’s below the waste pile, and they are also drilling right into the guts of the Block Model, attacking this north-dipping structure at an angle from the north, which could accomplish exactly what Frank Basa stated he wanted to do in the second round of drilling – drill for grade and tonnage.

GENIVAR is going to sweep right across the northern edge of the Block Model which will also lead them directly to GR-10-17 and the east-northeast extension.

The point here is that the area within the Block Model itself still holds significant potential, which GENIVAR wants to quickly confirm, and then they will fire on all cylinders to try and prove up a significant resource east and north of the Block Model. Following that, it looks like infill and definition drilling within the heart of the Block Model.

The potential here for 5 million-plus ounces is very real as we have been stating all along and this major second round of drilling is going to go a long way in our view toward confirming that. More later.