Gold Bullion Development (GBB, TSX-V)

It was a week of major developments for Gold Bullion with outstanding metallurgical results released for Granada Monday followed by new and highly encouraging assay results Friday…the stock was up 5% for the week at 63 cents with the highest weekly CDNX volume (7.4 million shares) in nearly 2 months…metallurgical recoveries in excess of 93% for grades below a gram are highly significant and strongly suggest Granada will be successful as a very large volume deposit if that’s what the LONG Bars Zone turns out to be…all signs are pointing to that…the assay results released Friday prove that the potential of the Eastern Extension is not only to the east, but also to the north and the south…Hole #108, collared 110 metres northwest of Phase 1 Discovery Hole #17 and 150 metres northeast of the Preliminary Block Model (2.4 to 2.6 million potential ounces, non 43-101 compliant), intersected 142 metres grading 0.70 g/t Au within a wider interval of 280 metres grading 0.38 g/t Au…this hole was collared 30 metres north of Hole #55 which returned a whopping 360 metres of 0.60 g/t Au (including 99 metres grading 1.85 g/t Au)…these are impressive intersections and they demonstrate that GENIVAR is defining a growing structure in the Eastern Extension…grades can be expected to improve once the drill pattern tightens, but even 0.50 is a very mineable grade that Gold Bullion could make a lot of money on…small diameter NQ drilling is being carried out to allow GENIVAR to get a better understanding of structure throughout the LONG Bars Zone…this type of drilling gives geologists a really good look at the alteration in the rock, among other things, although in a deposit of this nature (lots of free Gold and finely disseminated Gold) small diameter core drilling is likely going to understate the Gold content as Gold Bullion’s large bulk sample proved…GBB is waiting for drill results from 11 more holes drilled north, northeast and northwest of #17, many of which had strong visuals…the mineralization encountered in the northern portion of the Eastern Extension suggests to us that the Preliminary Block Model, very much untested to the north, has a lot of potential to expand in this direction…this has major tonnage implications for Granada…meanwhile, Gold Bullion has made a significant discovery of mineralization in the far south of the Eastern Extension as Hole #86 returned 1.00 g/t Au over a near-surface interval of 84.6 metres…this gives the south new potential…Hole #86 was collared nearly 200 metres southeast of the Preliminary Block Model…last week’s news – the metallurgical numbers and confirmation of a new north-south dynamic in the LONG Bars Zone – is game-changing and significantly broadens the picture at Granada…going east, GBB has several kilometres of highly prospective ground including LONG Bars Zone 2 which starts about 1.5 kilometres east of Hole #17…some spectacular numbers could come from that area, based on historical information, but there are clearly exciting new possibilities going north and south within the Preliminary Block Model and the Eastern Extension…Gold Bullion and GENIVAR are dealing with a different type of deposit than what Osisko (OSK, TSX) has at Canadian Malartic 65 kilometres to the east, but at the end of the day Granada could turn out to be even bigger…