Will Shortly Spin Off Its Silver Assets.

Gold Bullion Developments Is Racing Ahead With Its Granada Gold Project, And Will Shortly Spin Off Its Silver Assets

By Alexander Williams

http://www.minesite.com/nc/cnd/minews/singlenews/article/gold-bullion-developments-is-racing-ahead-with-its-granada-gold-project-but-will-shortly-spin-off-i/1.html

Investors in Gold Bullion Development Corp have not been short of news-flow in recent months. The company has been working at breakneck speed proving up resources at its two Canadian projects, the LONG Bars gold project in Quebec and the Castle silver mine in Ontario, which will now be spun off. LONG Bars lies on the prolific Cadillac Trend, and is part of the company’s wider Granada licence. And, for anyone wondering about the name – it’s an acronym for “Lots Of New Gold… Bars”, which, if it delivers on its promise, ought to make shareholders a happy bunch indeed.

Gold Bullion has rapidly increased its land holding at Granada since it entered the region in 2006, staking what is now an 11,000-hectare claim. “We’re looking to do some more acquisitions”, says chief executive Frank Basa. “Right now what we’re doing is trying to pick everything up going East. We’ve been having very good success on the Eastern zone.” One drill hole on the North East extension showed 0.93 grams per tonne gold over 230 meters, with a forty-meter intersect grading 4.9 grams per tonne. Over a shorter length grades reached as high as 163 grams per tonne.

Given that the bulk of the company’s tenements at Granada have until now escaped systematically exploration, recent results from LONG Bars are particularly significant. But perhaps the most exciting aspect of the property is that mineralization remains open in all directions, leaving plenty of scope for further positive drill results. As Frank Basa explains: “the grade has a tendency to change at depth and we’ve done two deep holes now down to about 450 meters”. So when it comes to modelling for future production, an open-pit model could also extend underground. “We also have two base metals that keep showing up, being copper and nickel, but at present they are not economical to recover.”

News last week that Gold Bullion has appointed serial drilling entrepreneur Ronald Goguen to its board can only be positive for its exploration efforts. Mr. Goguen was the founder of Major Drilling and is currently the Chairman of Landdrill International. “Ron Goguen brings to the table a long history of effective management in public companies”, explains Frank. “He also has a very good track record of developing assets and he has a lot of contacts which we ourselves don’t have.” Goguen also sits on the board of Silvore Fox Minerals Corp, a company that did a transformational deal with Sino Minerals Corp in November last year. His appointment was certainly greeted positively by the markest, as the shares rose more than ten per cent to C
.47 on the news.

The extent of the Granada claim was made clear last year when management re-discovered two abandoned mines to the East of the LONG Bars zone, after having sifted through government files from the 1930s and 1940s. Gold Bullion then decided to put a road in to the rediscovered workings and drilling will begin on the prospect once water has been found. It could potentially extend the strike length from 1.2 kilometres to roughly 3.5 kilometres, if the rig finds success. Another disused mine sits a further kilometer east, and since most of the mineralised projects on the Cadillac Trend run east-to-west, it looks as though Gold Bullion has a pretty large potential target on its hands.

The intention now is to prove up a substantial resource this summer, which, if the share price responds accordingly, should allow for a substantial fundraising. Drilling has been relentless, only stopping for two weeks since last May. “We sent everyone home at Christmas”, Frank Basa concedes.

Meanwhile, exploration also recommenced this quarter on the company’s Castle Mine silver project, which covers 34 leased claims and more than 560 square hectares, and the plan now is for the creation of a new and independent listed vehicle, to be called, appropriately, Castle Silver Mines Inc. The plan is to put together a new 43-101 report as quickly as possible. But the Castle mine already has a pedigree. Historically it’s produced plenty of silver, though not since the late 1980s when Agnico-Eagle moved off the site. Gold Bullion has initiated a 6,000 metre drilling campaign, aimed at extending existing silver-cobalt veins.

The separation of the Castle project will leave Gold Bullion to focus on Granada and the Cadillac Trend. Frank Basa insists this is not merely a story of a higher gold price lifting an old mining camp back into economic viability. He has tested the company’s preliminary economic models at a gold price of US$800, and has included the likely higher fuel costs attached to a high tonnage open-pit mine. But with assay results continuing to flow in from Granada, investors will have plenty of opportunity to make up their own minds. The latest showed 72.25 metres at 1.25 grams per tonne. Which is certainly not to be sniffed at