Gold Bullion Receives Positive Preliminary Economic Assessment for Granada, Proceeding to Preliminary Feasibility Study
VANCOUVER, Dec. 21, 2012 /PRNewswire/ – Gold Bullion Development Corp. (TSX.V:
GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) is pleased to
announce the first economic estimates for its Granada gold property
located on the prolific Cadillac trend in northwestern Quebec, 5 km
south of the city of Rouyn-Noranda. The proposed combination of an open
pit and underground operation has the potential to move Gold Bullion
into gold production at the approximate rate of 102,000 ounces of gold
The Preliminary Economic Assessment (PEA) was prepared by SGS Canada
Inc. - SGS Geostat business unit. The PEA is based on the measured,
indicated and inferred gold resource estimation provided by SGS Geostat
that was press released on November 15(th) 2012 in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects as defined by “NI 43-101″ regulations.
PEA highlights are summarized below:
Assumptions Gold Price (US$/oz) - 3 years trailing 1,470 average Canadian $ to US$ rate 1.0:1.0 Mineral Resources (recovered ounces) Underground Resources (1) 387,000 Open pit Resources (2) 739,000 Mine Parameters Mill feed coming from underground mine 1,000 (tonnes per day) Mill feed coming from open-pit mine 6,500 (tonnes per day) Combined mill feed (tonnes per day) 7,500 Mine plan tonnage (tonnes) 26,400,000 Underground Mine plan mill feed grade 3.51 (grams/tonne) Open-pit Mine plan mill feed grade 1.07 (grams/tonne) Open-pit waste-to-ore ratio 5.91 Estimated gold recovery (%) 94.10 Total gold recovered (ounces) 1,126,000 Pre-production period (years) 2.00 Mine life (years) 11.00 Average annual gold production (ounces) 102,000 Costs Pre-production capital ($) 259,000,000 Average Underground cash cost per ounce 1,205 (US$/oz) Average Open-pit cash cost per ounce 985 (US$/oz) Financial Return Payback from start of production 6.80 (years) Internal Rate of Return (before tax) 10.4% Net present value, pre tax, 5.5% 74,300,000 discount ($ disc.) (All dollar figures expressed in Canadian dollars, except where indicated) ____________________________________________________________________ | |Resource category| Tonnes| Grade (g/t)| |___________|_________________|__________________|___________________| | |Measured | 18,000| 2.79| | |_________________|__________________|___________________| | U/G(1) |Indicated | 1,018,000| 3.74| | |_________________|__________________|___________________| | |Inferred | 2,635,000| 3.42| |___________|_________________|__________________|___________________| | |Measured | 20,485,000| 1.05| | |_________________|__________________|___________________| |Open-pit(2)|Indicated | 2,178,000| 1.27| | |_________________|__________________|___________________| | |Inferred | 112,000| 0.78| |___________|_________________|__________________|___________________| Note: The above chart is presenting the resource as diluted material, mineral resources that are not mineral reserves and do not have demonstrated economic viability.
At the prevailing gold price on December 19th, 2012 of US$1,650 per
ounce and a Canadian to U.S. dollar exchange rate of 1.00, Gold Bullion
has determined that the pre-tax NPV increases to $217.8 million at a
5.50% discount rate while pre-tax IRR increases to 18.8% with payback
time reduced to 4.8 years (using the same mine plan).
The study was prepared as a stand-alone project, relating solely to the
mineral resources deposit at Granada, and accordingly does not take
into account the previously outlined potential at depth disclosed on
November 26(th), 2012 since it is not mineral resources. Additional work is therefore
required to convert the portion of potential into mineral resources.
The Scoping Study mentioned herein is a preliminary evaluation inclusive
of inferred mineral resources that are too geologically speculative to
infer economical considerations that would classify them into mineral
reserves. It is therefore uncertain that this preliminary evaluation
results in the expected outcome.
“We are very pleased to release the Preliminary Economic Assessment
study on the Granada gold deposit” stated Frank J. Basa, P. Eng.,
President and Chief Executive Officer. “Due to the dedication and
diligence of Gold Bullion’s technical team and consultants, we have
been able to deliver this study within just four years of developing
the property and are proud to see Gold Bullion progress as a potential
emerging producer of gold in the near term, creating shareholder value
through successful exploration and development while continuing to seek
out other worthwhile opportunities for growth.”
The delivery of the Scoping (PEA) Study completes the first stage of
Gold Bullion’s Continuous Development Program at Granada, aimed at
advancing the Granada Project to commercial production, by
demonstrating an economic, environmental and social gain, while
simultaneously mitigating the technical, financial, and environmental
risks of the Project.
As mineral resources could be affected by permitting and social
acceptance issues, Gold Bullion plans to hold meetings with various
stakeholder groups prior to the completion of the Pre-Feasibility Study
and will either be incorporating those views and recommendations into
the study or retaining as recommendations to be addressed in the
possible final Feasibility Study.
Claude Duplessis, Eng., Gaston Gagnon, Eng. and Jonathan GagnÃ©, Eng. are
acting as the qualified persons (QP) for Gold Bullion Development Corp.
in compliance with National Instrument 43-101 and have reviewed the
technical contents of this press release.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior natural
resource company focusing on the exploration and development of its
Granada Property near Rouyn-Noranda, QuÃ©bec. Additional information on
the Company’s Granada gold property is available by visiting the
website at www.GoldBullionDevelopmentCorp.com and on SEDAR.com.
“Frank J. Basa”
Frank J. Basa, P.Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from
those currently anticipated in such statements.
SOURCE Gold Bullion Development Corp.