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 viability.
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 property.
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 efficiency.
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 artwork creation.
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