Gold Bullion Development Corp. Granada progress update
VANCOUVER, Nov. 13, 2013 /PRNewswire/ – Gold Bullion Development Corp. (TSX-V:
GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) is providing an
update on activities at the Granada Gold Property in Quebec with the
Pre-Feasibility Study or (“PFS”) anticipated in Q4 2013. Since delivery
of a cash flow positive PEA last year (February 4, 2013 effective
December 21, 2012), the Company has been working to further refine the
overall economic strength of the various mining scenarios with the goal
of improving margins given the volatility in the gold price during
2013. Based on the work completed to date, management believes that the
upcoming PFS could demonstrate a viable scenario that targets higher
grades above 2 grams per tonne. The Granada Mine property
mineralization gives Gold Bullion the flexibility to develop the mine
at different grades based on market conditions to ensure economic
At this stage in the development of the Granada Mine property, the
economic fundamentals appear to be stronger in the upcoming PFS than in
the PEA forecast, which had incorporated a larger pit and higher CAPEX
scenario. The Company now has several designs for both open pit mining
near surface and for underground gold extraction with management
currently leaning towards a higher grade production scenario as a risk
reduction best practices strategy. In anticipation of a positive PFS,
management will focus on the construction of a smaller open pit that is
a higher-grade operation for the interim development of the Granada
With further drilling it is expected that the gold resource at the
Granada Mine property may increase which would then lead to the
construction of a larger processing plant. With the present resource of
1.6 million ounces gold at 1 gram per tonne in the M & I categories and
1 million ounces in the inferred category (PEA released February 4,
2013 effective December 21, 2012), detailed as in situ measured
resource is 946,000 ounces (28.735 million tonnes grading 1.02 g/t),
indicated resource is 659,000 ounces (18.740 million tonnes grading
1.09 g/t), inferred resource is 1,033,000 ounces gold (29.975 million
tonnes grading 1.07 g/t Au) using a cut-off grade of 0.40 g/t., the
Company is targeting an additional 1 to 2 million ounces grading 3 to 4
grams per tonne within 10 to 15 million tonnes to this total (as press
released November 26, 2012) with subsequent drill programmes. As only
20 percent of the extended LONG Bars zone has been explored to date,
the potential exists to further increase the resource with future
drilling. Currently, the deposit is open to the east, west, north, and
at depth. Management has identified a minimum of three additional
target areas that remain to be explored on the Granada Mine property.
In terms of processing, the Company is assessing options including mills
in close proximity that can provide the customisation milling required
for Granada mineralized material. This should aid in limiting risk and
moderating costs should this option come to fruition.
A second option, previously referred to as the rolling start production
scenario, would require the purchase of a modular mill for use onsite.
The advantages for the rolling start include loan payback over a
shorter term, cost containment, stability in operations plus the
flexibility of being able to move the mill for future use at the Castle
Silver Mine properties in Ontario as it would work well for treating
high grade silver ores. The mill would process 500 tonnes per day and,
given the results from the successful trenching programme conducted
last summer, it is now known where to locate the mill for best possible
Compared to the first strategic milling process announced in a press
release on July 9, 2013, the optimal configuration then, to produce a
gold bar, involved gravity, flotation then cyanidation of the flotation
concentrates. Additional testing has shown mill recovery in the 97.5%
range is better achieved using gravity followed directly by cyanidation
of gravity tails.
The on-going study now plans to have a single tailing facility, which
assures its long-term stability and a good environmental quality for
Granada and its neighbours both now and for future generations. The
environmental strategy mitigates any possible long-term liabilities.
Adding limestone into the pump box prior to discharge is foreseen as
part of achieving these long-term environmental goals.
Revised Pit Layout
The satellite image below shows the revised open pit mine design with
the smaller proposed pit layout in red located within the larger pit
marked “Pit Used in PEA”. One significant advantage of keeping the
tonnes per day production at 500 is that mine output will be under the
threshold number that necessitates a full-scale environmental impact
study under existing regulations thus expediting the production
scenario saving both time and money.
The area to the immediate northwest of the larger pit outline is the
location of the orphaned tailings from the historical (1935) past
producer. Although the Company is currently restricted from drilling
there, it is negotiating with the government on how to best deal with
the tailings. It is possible the Company will be able to add ounces at
depth in that area, in due course.
The overburden storage area is located to the north of the pit and west
of the waste pile design image. The pad for the modular mill is located
to the west of the pit and north of the tailings containment area.
Waste Pile Design Image
Gold Bullion is planning to leave a permanent legacy landmark
constructed from barren rock at the Granada Gold mine. The current
design is superimposed in the satellite image above and is an original
Having completed a LIDAR survey in conjunction with the trenching and
outcrop mapping programme last summer, the Company has concluded the
process of defining the overburden map with little overburden apparent.
For optimal pit design, a nominal amount of drilling will be required
to enhance the geotechnical data with respect to the hanging wall but
by increasing the slope of the North wall, a reduction in the stripping
ratio should also reduce mining-related costs.
The Company plans to hold community-based meetings in the near future to
outline the details of the proposed plans for gold extraction at the
Granada site. The Company plans to select one of the scenarios
discussed above once appropriate financing has been secured.
Claude Duplessis, P. Eng., a consultant for SGS Geostat, is acting as
the qualified person (QP) for Gold Bullion Development Corp. in
compliance with National Instrument 43-101 and has 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, Québec, and its high grade Castle
Silver Mine in Gowganda, Ontario. 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.
Image with caption: “Revised Pit Layout (CNW Group/Gold Bullion Development Corp.)”. Image available at: http://photos.newswire.ca/images/download/20131113_C6928_PHOTO_EN_33311.jpg