Gold Bullion drills 26 m of 4.6 g/t Au at Granada

2010-09-09 17:08 ET - News Release

Mr. Frank Basa reports:

GEOLOGICAL INTERPRETATION OF GRANADA GOLD PROPERTYEVOLVES AFTER 18,000 METRES OF PHASE 2 DRILLING

Gold Bullion Development Corp. (GBB, TSX.V) is very pleased to reportthat phase 2 drilling at its Granada Gold property has delivered thebest near-surface assay result yet. In addition, the geologicalinterpretation of the LONG Bars Zone -- in particular the growingEastern Extension where visible gold has been intersected withinporphyry in numerous holes -- is evolving after 18,000 metres ofdrilling the past four months. Gold Bullion is aggressively exploringGranada, located five kilometres south of Rouyn-Noranda in northwesternQuebec, as a potential open-pit deposit along the prolific Cadillactrend where numerous multi-million ounce deposits have been discoveredand developed.

GR-10-53, collared 88 metres southeast of recently reported GR-10-41 andnear Pit #2 East, has intersected 68.3 metres of 2.16 g/t Au, includinga high-grade section of 4.60 g/t Au over 26 metres, within a widernear-surface interval of 110.5 metres (3.5 metres to 114 metres) grading1.34 g/t Au. This hole was drilled perpendicular to vein No. 2 and isbelieved to closely approximate true width. Alteration dominated bystrong sericitization and silicification was encountered in this holealong with quartz veining and abundant pyrite. GR-10-53 is inside theLONG Bars Zone Preliminary Block Model which was outlined in detail inGold Bullion's April 22, 2010, news release.

"We're elated with the way this major project is coming together andwe're eagerly anticipating additional results," explains Gold Bullionpresident and chief executive officer Frank Basa. "We're still in theearly stages, strategically drilling for structure, and each and everyhole is hitting mineralization and giving our geological team thecritical information it needs in order to better understand the dynamicsof this potentially large gold bearing system. We've already completeda large bulk sample which was extremely important in terms ofquantifying grade. We've also now launched a Baseline EnvironmentalStudy and we're already examining the most efficient ways to potentiallyprocess Granada ore. We're on track to achieve our goal of buildingshareholder value by taking a fresh approach to this former producer anddeveloping a potential world class open-pit deposit. Granada issurrounded by excellent infrastructure in one of the best jurisdictionsthere is for mining and exploration."

Granada is a sediment-hosted, structurally controlled vein-type deposit(quartz veins, veinlets, stockworks, breccias) that has been intruded bya series of syenite feldspar porphyry sills and dykes mineralized withfinely disseminated pyrite and/or arsenopyrite. It is underlain byconglomerates and greywackes of the Archean Timiskaming group sedimentsand intruded by later syenite. These rocks appear to be intenselyhydrothermally altered. The Cadillac fault traverses the northernportion of the property and multiple spatially-related secondary faultshave become areas of intense interest -- GENIVAR, Gold Bullion'sgeological consultant, hypothesizes that these faults may have acted aspermeable conduits for mineralizing fluids as higher grades at Granadaappear to be concentrated in close proximity to these structures.

While results in the southern half of the Preliminary Block Model, nearformer producing Pits #2 West and #2 East, have been very encouraging todate, the northern half from the waste pile (immediately east of Pit#1) to the eastern boundary of the Preliminary Block Model has receivedonly limited historical attention. A total of 15 holes (not includingGR 10-33 and GR-10-41 which straddle the north-south boundary) have nowbeen drilled east of the waste pile over the northern half of thePreliminary Block Model -- a section that was not tested in phase 1drilling. Assay results are still pending on 14 of these holes butGR-10-47, one of the deepest holes drilled so far within the PreliminaryBlock Model, confirmed the presence of a northeasterly trending faultand returned 1.68 g/t Au over 28 metres (from 122 to 150 metres) within awider envelope of 182 metres grading 0.44 g/t Au.

A large amount of rock is being removed from the 34,000 square metrewaste pile which will allow for drilling of important targets there.GENIVAR reports that large porphyry intrusions cover much of thenorthern part of the waste pile. Northeasterly trending faultstructures are also interpreted to run through the waste pile.

Assay results for three other holes within the Preliminary Block Modelhave been received. The best intercepts included 1.31 g/t Au over 11metres in GR-10-32 and 1.16 g/t Au over 9.2 metres in GR-10-35.

Meanwhile, the LONG Bars Zone Eastern Extension, outside the PreliminaryBlock Model area, continues to grow and is of extreme interest. Thetotal surface area drilled so far in the Eastern Extension is 450 metresnorth-south and 500 metres east-west. GENIVAR reports that visible goldand disseminated sulphides, along with large alteration zones, havebeen observed within the porphyry in numerous holes drilled since Julyin all directions (north, south, east and west) surrounding Phase 1discovery hole GR-10-17. Assay results are still pending for theseholes where mineralization was encountered near-surface and at depth.The fact that feldspar porphyry is hosting gold is an interestingdevelopment historically for Granada as a 2006 Technical Report on theproperty stated that all economic mineralization at Granada was relatedto quartz veining.

Assay results are pending for seven holes drilled northwest of GR-10-17in close proximity to a possible northeasterly trending fault. Therewere also very encouraging visual observations in a series of holes(assays pending) drilled east and southeast of GR-10-17. GENIVARconfirmed an extension to the LONG Bars Zone geological structure eastof GR-10-17 after drilling was completed in GR-10-63, GR-10-65 andGR-10-73. GR-10-73 (collared 155 metres east of GR-10-17) and GR-10-78(collared 250 metres east of GR-10-17) are the deepest holes drilled sofar in the Eastern Extension as they each went to a vertical depth of350 metres and encountered visible gold.

Of significant new interest is the southernmost hole drilled to date inthe LONG Bars Zone, GR-10-86, which has intersected strong alterationand intrusive zones along with visible gold in two sections (in abrecciated quartz vein and also in feldspar porphyry) at differentdepths. Assays are pending on this hole which is interpreted to be apossible extension of Vein #2, 250 metres to the west-northwest.GENIVAR is plotting additional targets in the vicinity of GR-10-86.

Initial assay results from early Phase 2 drilling in June in the EasternExtension have been received and confirm more near-surfacemineralization.

GR-10-44, collared 100 metres southwest of GR-10-17, showed consistentmineralization throughout the length of the hole with the best interceptbeing 1.20 g/t Au over 41.5 metres (from 91.5 to 132.65 metres).GR-10-44 assayed 0.287 g/t Au over 237 metres.

GR-10-42, collared 50 metres west of GR-10-17, returned intersections of1.45 g/t Au over 19 metres and 0.53 g/t Au over 96 metres (from 17 to113.5 metres) within an overall interval of 249.6 metres grading 0.315g/t Au. Highlights of five other holes included 1.97 g/t Au over 9metres in GR-10-56 (from 23.74 to 32.74 metres) and 0.58 g/t Au over20.9 metres in GR-10-46.

An updated drill map and assay results for all 18 Phase 2 holes drilledat Granada and received so far are available in the Phase 2 drillingsection of the company's web site, www.GoldBullionDevelopmentCorp.com.

All core is being logged and split on-site, and the company has justrecently contracted a third assay lab (ALS Chemex Labs in Val d'Or,Quebec) to expedite delivery of additional results. A total of 88 holeshave been drilled in Phase 2 through September 8, with 2,000 metresremaining, so less than 20% of the assay results from this program havebeen received.Gold Bullion is also very pleased to announce that it has just received aTestwork Study Report from Gekko Systems Ltd. of Victoria, Australia,regarding extensive metallurgical testing on Granada ore samples takenfrom the LONG Bars Zone Eastern Extension last May. The company isreviewing this report and will release details shortly. Gekko Systemsis an internationally recognized company that specializes in the design,development and distribution of innovative mineral processing equipmentand systems with a particular focus on gravity separation.Mineralization remains open in all directions at the nearly 5,000hectare Granada Gold property.

The NQ drill program and drill core sampling, including the qualityassurance/quality control program, are supervised by GENIVAR, GoldBullion's geological consultant. Assay results referred to in this newsrelease are length-weighted average values and are believed by GENIVARto closely approximate true widths. Core was sent to Laboratoire Expertin Rouyn-Noranda, Quebec and Swastika Laboratories in Swastika, Ontariofor analysis. Gold and silver were assayed by fire assay withadditional metallics analysis done on samples where visible gold wasidentified. Analytical accuracy and precision are monitored by theanalysis of reagent blanks and reference materials at both labs. Qualitycontrol is further assured by the insertion of blind certified standardreference material and blanks into the sample stream at regularintervals by Gold Bullion and GENIVAR personnel in order toindependently assess analytical accuracy.