Rolling Start can fund a growing resource.
Bits and Pieces, maybe $ 12.5-25m/year
Bits and pieces -
Basa on Forum "Strip Ratio " Jan 29/13 mused about costs of 800 per oz for rolling start ?
"It appears anything in the 1 g/t grade is about 700-800 dollars per ounce in real dollars today."
plug in 475 ton per day and 3 g /ton, 1600 gold
estimate one - (math to be confirmed)
15000 0z per year 1, 2,and 3,
( 3 gm gold per ton X 475 ton/d X 365 days per year X 93% recovery /31g/oz = 15603 oz gold, 15603 X 800$ profit before loan and taxes = $12 ,5M)
estimate two -
22000 oz - 31000 oz per year 1, 2 and 3,
( pre-concentrate the ore , maybe 1.5-2X 15,603 oz = 23404 oz to 31,206 oz, $18.7M dollars to $ 25m )
p . 127. PEA
The envelope is around 1500 meters long east-west, extent to -775mZ elevation from 320mZ surface for a vertical depth of 1095 meters as shown in previous figure. The estimated true width of the conglomerate package varies from 200 meters up to about 350 meters.
p 211.PEA
At this time the exploration potential is open since only a small area has been explored with drilling by Gold Bullion. However, assuming that the geological controls observed at the Granada property are similar in size and grade to the other mineralized veins and the know mineralization, there is every reason to believe that the area of potential mineralization at the Granada property is large.
p 209 PEA
24.1 Potential
The author has evaluated a potential mineralization at depth based on nearby diamond drill holes to justify additional drilling in these areas.
The potential stated above is based on projections within the mineralized plan of two and three mineralized zones of 3 meters true width on the west and east side of the deep hole program under highly drilled surface mineralization.
Remember this from Nov 26, 2012 : “The Company is now targeting 3.6 to 4.6 million ounces of gold from the next phase of the continued exploration program at Granada with some 80% of the extended Long Bars zone remaining to be explored.”
p 213. PEA
26- Recommendations
Economical
The Granada Project merits more detailed work to increase the economic robustness.
Additional drilling is required under old historical tailings, since it is not allowed by the Minister of Natural Resources. The few intersections in that sector reveal good potential near surface that can greatly impact the project economics.
With the latest development of public opinion and the community, plus the Provincial Government’s decision about mining industry, the author is of the opinion that a Rolling Start Mine is highly recommended prior to proceeding with a larger scale mining scenario.
A 2-3 year small Rolling Start Mine is proposed in the range of 450 to 475 tonnes per day. This would meet the following objectives:
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1) Demonstrate to stakeholders that Gold Bullion Development Corp. is a good corporate citizen;
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2) Demonstrate the Company compliance with all regulations and beyond;
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3) Demonstrate the quality of the resource estimate and validate the gold recovery while pouring gold doré bars, for the mutual benefits of the stakeholders, the local community
and of course the stockholders.