Brett Resources bought out last year by Osisko.
BBR vs GBB
Brett Resources: At time of sale Brett had proven up an Inferred resources of 6.7 million ounces of gold at 0.7 g/t au to depth of 300 metres.
Gold Bullion: Potential in block model alone adjusted to 300 m depth for 4.0 + Million oz gold, as down to 70 m lies our potential for 2.4 to 2.6. This estimate excludes recent extensions found ENE and does not give any credit to our Long Bars Zone 2 which is said to be similar in dimensions and mineralization to the Block Model.
Brett Resources: Metallurgical data: Gold used for sample averaged 0.60 to 3.4 g/t au, recovery was 93%.
Gold Bullion: Metallurgical data: Gold used for sample averaged 0.5-0.6 g/t au (all high grade samples were excluded) still came up with 93% recovery rates.
Brett Resources: At the date of being bought out Brett Resources had completed just over 31,000 metres of driling on their Hammond Reef deposit, a total of 49,000 metres between historical (18,000 metres) and their own.
Gold Bullion - To date GBB has drilled over 40,000 metres across their Phase 1, 2 and 3 drill programs but also have a database larger than Brett of over 490 historical diamond drill holes comprising 25,000 + metres for a total of over 65,000 metres to base on the Resource Estimate on.
Infrastructure for the two companies is close to the same as GBB located located in Quebec, Brett in Ontario, except GBB is half the distance from major highways/towns.
Brett Resources - No other existing base metal properties
Gold Bullion - This month are planning to start exploration with a large Phase 1 6,000 metre drill program planned for their Castle Silver Mine.
Brett Resources Significant Drill Results
2007
38.5 m @ 0.81, 43.5 m @ 1.22
84 m @ 1.05, 58.5 m @ 0.74, 48 m @ 0.95, 69 m @ 0.73, 43.5 m @ 1.23
102 m @ 1.27, 108 m @ 0.93, 43 m @ 1.00, 60 m @ 1.04
244 m @ 1.04, 82.5 m @ 0.88, 267 m @ 1.02, 111 m @ 0.9, 112 m @ 1.2, 111 m @ 0.93
120 m @ 1.59, 178 m @ 1.08, 175 m @ 0.98, 114 m @ 1.26, 127.5 @ 1.03
2008
37 m @ 3.35, 22 m @ 3.61, 30 m @ 2.53
55 m @ 1.49, 49.5 m @ 1.44, 123 m @ 1.4
162 m @ 1.23, 102 m @ 1.19, 154 m @ 1.2
141 m @ 0.65, 91 m @ 0.67, 252 m @ 0.55
Based on these results alone - 114 diamond drill holes comprising of 31,000 metres as well as 85 historical drill holes of 18,000 metres - a total of 49,000 metres Brett Resources came up with the following estimate.
- Less significant assays under 150 metres at under 0.4 g/t are not included as I omitted GBB's less appealing holes as well.
The base case Inferred Resource is now 155 million tonnes at 1.04 grams per tonne (g/t) gold (Au) totaling 5.19 million ounces (oz) of Au at a 0.6 g/t cutoff.
Gold Bullion Development Significant Drill Results
2010
73 m @ 0.88, 61 m @ 0.55, 65.5 m @ 1.21, 68.8 m @ 1.07, 123 m @ 1.07
75 m @ 1.5, 20.5 m @ 4.98, 68 m @ 2.16, 182 m @ 0.44, 40.5 m @ 4.05
116 m @ 1.69, 356.6 m @ 0.6, 69 m @ 2.59, 127 m @ 0.76, 62.4 m @ 1.06
141 m @ 1.07, 228 m @ 0.5, 135 m @ 0.62, 118 m @ 0.45, 161 m @ 1.2
223 m @ 0.6, 198 m @ 0.74, 108 m @ 0.78, 78 m @ 0.87, 108 m @ 0.63
101 m @ 0.51, 83 m @ 0.97, 177 m @ 0.51, 151 m @ 0.57
77.5 m @ 0.72, 73 m @ 1.28, 78 m @ 0.7, 94 m @ 1.03
Brett was bought out with 110 M shares outstanding for $3.50/share or $385 million dollars based on 6.7 Moz at 0.7 g/t au. Currently Gold Bullion is valued at about $60 million dollars with a very likely possibility of coming up with at least 3+ million ounces in their first Resource Estimate. Brett was purchased for $58.00/oz on an INFERRED resource basis by Osisko based on their 6.7 million oz gold.
Gold Bullion is looking to prove at least 3 million oz + we know we have a similar structure out East that looks to contain at this point at least 1.5 Moz and we will be able to test for more high grade structures in the next month or two as we start drilling the Aukeko Shaft. At 158 M shares outstanding with close to $8 million in the bank, a Castle Silver Mine, and a property that's structure has been doubled since this summer we should not be seeing our Granada property valued at roughly $70 million based on at least 3 million ounces of gold in the Preliminary Block Model alone.
What must also be remembered is the industry avg. is over $105 per oz anywhere in the world for gold and Osisko currently gets $400/oz whereas other Ontario/Quebec companies like Lakeshore receive over $850/oz for their Proven/Probable Reserves. Valuing us at only $20 an ounce right now in Quebec is far too conservative for what we've shown the market. Low grade tonnage deposits are not rewarded by the Market on NR's until the Resource Estimate is in the pipeline and this is the best chance to be scooping up shares for a 3-4 bagger on the Resource Estimate as we will not be trading at these levels in a month or two in anticipation of it. Osisko in December of 2005 closed at 0.50 cents a share and with their Resource Estimate the next year and only 20 M shares of dilution closed the next year at over $4.50 a share with gold hovering around $700/oz. They already had 190 M shares out and were valued close to $1 billion dollars with gold at $700/oz and their estimated cash costs at $325/oz with only 6 Moz of inferred resources.
Osisko Exploration Ltd. (OSK:TSX-V, EWX: Deutsche Boerse) is very pleased to announce the first National Instrument 43-101 compliant, inferred resource estimate from its 100%-owned Canadian Malartic deposit, located in the Abitibi region of Quebec. RSG Global Consulting Pty Ltd. of Perth, Australia ("RSG Global") has authorized Osisko to release results of their inferred resource estimate on the main portion of the Canadian Malartic gold deposit. Based on a lower cutoff grade of 0.5 g/t Au and using various statistical approaches, RSG Global has estimated an inferred resource between 6.54 and 6.59 million ounces gold.
Based on $700 gold in 2006 they received a valuation of approximately $150 per Inferred ounce on their Malartic deposit. We're getting $23 an ounce before our Resource Estimate in 2011 with $1450 gold with a deposit on strike with Osisko and dimensions that will soon rival it in structure.
We don't belong in the 40's nor do we in the 50's and the big boys will take the opportunity to grab more shares if you don't as you can bet they'll be averaging down on more tonnage while the weak hands sell on "weak grades". This story was never about high grade intercepts, has NEVER been about grades but suddenly on this news release our chart gets beaten to hell and everything is all doom and gloom. Osisko never had grades which shot them up on NR's, nor did Brett and nor did more recent Orezone. Before the resource estimate Orezone traded in a channel of 0.60 - 0.80 cents and promptly gapped up to over $2 and then to $3 and again to almost $4 before settling in the low $3's after their Resource Estimate at 1.4 measured and another 1.4 inferred in West Africa.
We don't belong at this market cap and I could care less what the junior market looks like right now as if you have value stocks which are severely undervalued we are already trading at too far of discounts to reserves in the ground. Are they going to knock us down to 35 cents where we'll have a $55 million dollar market cap? That'd be really representative of what we have at GBB with $5 M still in the bank and a silver play worth at least $5 million that's giving us a market cap of $45 million left or $11.25 per oz in the ground of gold right now? If that's the case I'll be picking up another 50k shares at 0.35 cents and getting $60 per oz 3 months from now. My original price target for GBB was $2 but since we've been manipulated we may have some trouble getting over hurdles with the cheap shares accumulated. Regardless 3.5 Moz au minimum at $80 per oz is $280 million dollars or a $1.50 share price, with a 43-101 around the corner you're not going to see shares under 50 cents much longer.
GBB has increased their land position from 71 hectares to over 11,000 hectares in the past year alone which speaks volumes to the potential they see on the property. An increase of over 16,000% in land package in less than 12 months.
Look at TRR, ORE, CUU, RVC prior to and after Resource Estimates and it's easy to see that we're not going to be trading at this discount the closer the 43-101 is to coming. You can buy now for under 45 cents or you can wait to buy back over 50 cents after we've released our next set of drill results and are that much closer to having Genivar begin compiling our 43-101. TRR is getting $136.50 per oz valued solely on gold oz's in the ground and is in Ontario as favourable a mining jurisdiction as Quebec.
GBB Valuation Comparables:
Gold Companies With Resource Estimates in Past 6 Months
TRR - Reached market cap of $630 million based on Resource Estimate of 4.2 Moz gold Inferred at Cote Lake Deposit. That’s a valuation of $150/oz gold in Ontario. Now trading at $580~ million market cap.
Share Price April 1st 2010: $1.14
Share Price Now: $4.74
ORE - Reached market cap of $184 million based on 1.6 Moz Indicated and 1.9 Moz inferred in at their Bombore Deposit in Burkina Faso. That’s a valuation of $53/oz gold which was cheap at the time since their market cap has responded trading now at a market cap of $400 million or closer to $115/oz gold based on reserves.
Share Price : April 1st 2010:
.70
Share Price Now: $4.68
RVC - Reached market cap of $200 million based on 1.8 Moz Indicated and 2.35 Moz Inferred at their Blackwater Deposit in British Columbia. Since they have reached a market cap of $318 million or $78/ounce of gold.
Share Price April 1st 2010: $1.73
Share Price Now: $7.20
While these aren't apple to apple comparisons what can be seen from these three companies is that within 3 months of receiving their Resource Estimates and actual PROOF of what's in the ground from the 43-101 their valuations went up over 300% and the companies are now valued at an average of $114/oz of gold in mining jurisdictions as favourable if not less favourable than ours. Each of these companies has grades similar to ours with deposits between 3 to 4.5 Moz which is comparable to our size as a junior potential takeover target. Right now at
.425 cents we're receiving a market cap of $67 million dollars and based on my belief of our 43-101 coming up with no less than 3.2 Moz Inferred with Phase 3 drilling including we are being valued at under $21/oz of gold. The EXACT same gold that TRR is being valued for over $120/oz INFERRED for right now one province away in Chester, Ontario.
If shareholders in these companies told you your shares would be worth 5 X in less than a year you wouldn't have believed them but companies without "exciting" drill results lack catalysts for the share price except Resource Estimates or PEA's therefore they basically go unnoticed until they have a definitive label on the ounces in the ground. With the tonnage we have and over 60,000 metres of drilling + another 30,000 metres historical we will have no problem coming up with 3 Million ounces at Granada for the 43-101 and should receive a fairer market valuation of closer to $65/oz in my opinion or a minimum $1.23 a share come July. Some people may be thinking this is a Golden Hope and a complete pump and dump but the past 9 months illustrates a chart of strength and with the last drill results the MM's were finally able to shake weak hands out and truly put a damper on the share price as well as provide some overhead resistance to give them time to accumulate. Golden Hope has no intervals over 100 m or nothing of any value and if they were to try and release a 43-101 at this point based on dril results would come up with 0.5 Moz of gold at most. This is much different than GBB which has actually put the drills in the ground and has drilled over 25 100 metre + intervals which will only contribute to tonnage for the 43-101. Plus people seem to forget at this share price you're essentially getting 3 Moz of gold in Quebec + a Silver play for free with silver at all time highs. You can continue to give away your shares at these prices but you're only making the MM's job easier by keeping the price here and letting others believe this is a fair market valuation for GBB. We know where this stock belongs and longs will be rewarded. You'll only pay more for shares once GBB announces they're step-out drilling at the Aukeko Shaft with historical results averaging 7 ozs per ton/au.