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 per year.
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
15th 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
average |
1,470 |
| 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 (tonnes per
day) |
1,000 |
| Mill feed coming from open-pit mine (tonnes per
day) |
6,500 |
| Combined mill feed (tonnes per day) |
7,500 |
| Mine plan tonnage (tonnes) |
26,400,000 |
| Underground Mine plan mill feed grade
(grams/tonne) |
3.51 |
| Open-pit Mine plan mill feed grade
(grams/tonne) |
1.07 |
| 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 ($) |
259,000,000 |
| Average Underground cash cost per ounce
(US$/oz) |
1,205 |
| Average Open-pit cash cost per ounce (US$/oz) |
985 |
| |
|
| Financial Return |
|
| Payback from start of production (years) |
6.80 |
| Internal Rate of Return (before tax) |
10.4% |
| Net present value, pre tax, 5.5% discount ($
disc.) |
74,300,000 |
| |
| (All dollar figures expressed in
Canadian dollars, except where indicated) |
| |
Resource category |
Tonnes |
Grade (g/t) |
|
U/G(1) |
Measured |
18,000 |
2.79 |
| Indicated |
1,018,000 |
3.74 |
| Inferred |
2,635,000 |
3.42 |
|
Open-pit(2) |
Measured |
20,485,000 |
1.05 |
| 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
26th, 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.
The complete technical report will be filed on the
Company's website (www.GoldBullionDevelopmentCorp.com) and on SEDAR
(www.sedar.com) in the next 45 days.
"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 Gagné, 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, Québec. 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.