Gold Bullion Development Corp. (TSX VENTURE:GBB) (Pink Sheets:GBBFF) (Frankfurt:B6D) is the subject of a Mining MarketWatch Journal Review offering insight and opportunity afforded investors as GBB.V has built significant ounces at its Granada Mine located along the prolific Cadillac Trend in Quebec, and is now positioned for an initial open-pit Gold production scenario on its 1.6 million ounce Measured & Indicated at 1.0g/t Au and 1.0 million ounces at 1.0 g/t Au Inferred deposit. This Q4 2013, independent consulting firm SGS is expected to deliver a Preliminary Feasibility Study (PFS) commissioned with the mandate of lowering (compared to the PEA) the capital costs of the project as well as the cost per ounce of gold by increasing the grade of the gold to be processed -- Mining MarketWatch Journal believes a quality NPV and IRR is in the works and investors would be wise to put GBB.V on their shopping list now. The Granada Gold deposit is 100% owned by GBB.V and is currently ranked the 314th largest Gold deposit in the world. GBB.V has a market cap under $15 million, it is significantly undervalued on a comparable 'in situ' basis, and is speculated to be dramatically undervalued on a (upcoming PFS) NPV basis. GBB.V appears poised for considerable share price appreciation as the reality of the accomplishment underway is appreciated by the market.
The full Mining Journal review may be found athttps://miningmarketwatch.net/gbb.htm online.
There are five veins angling down from surface on a ~45 -50 degree angle into nine zones. The current resource stands at 1.605 million oz at 1.0 g/t Gold Measured & Indicated and 1.033 million oz at 1.0 g/t Gold Inferred, this was accomplished via ~90,000 metres of drilling by the Company from 2009 - 2012. Management is confidently targeting a 4.6 million total oz Gold resource in its next major phases of drilling (looking to add ~2 million ounces of 3+ g/T material). This potential 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.
The Cadillac Trend lies within the Southern Abitibi Greenstone Belt which has seen over 170 million ounces of Gold production history. The Granada Property is located only 5 km south of Rouyn-Noranda, 60km west and on trend with Osisko's 10.1 million oz Proven & Probable Malartic Gold deposit. The deposit at Granada hosts a former-producing mine (historic underground deposit graded ~9 g/T).
Large resource growth potential: The mineral-bearing structure on the Granada property that supports the current resource appears to be ~13km long running east - west, yet GBB has explored only ~2km of it. The Company has identified several highly-prospective targets, and the flagship resource deposit itself is still open to the east, west, north, and at depth. The established resource is on the 'extended LONG Bars zone' and the next 100,000 m - 200,000m phases of major drilling, if focused between established intercepts, has readily achievable potential to yield an additional 1.0 - 2.0 million oz of mineral resource with grades ranging from 3.2 to 4.7 g/t. This potential is as outlined in the company’s November 26, 2012 press release and is conceptual in nature as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Conceivably, this could be paid for non-dilutively via profits from the fast approaching mining scenario.
When GBB.V first acquired the Granada property in 2006 it received ~20,000m of historical (and therefore non-43-101-compliant) drill results data hinting at the potential for a low-grade near-surface deposit. Management conducted a very large bulk sample of 140,000 tonnes and the numbers came back significantly better than expected due to the presence of consistent and pervasive 'free gold' associated with the quartz veins.
Production decision imminent as PFS is expected this Q4 2013:
In December 2012 GBB.V received a PEA indicating the mining potential of this project even when only 1.166 million oz of the resource is considered. Since receipt of the PEA, management has worked diligently to refine/improve the economics of the mining scenario and ensure GBB.V's margins will be high. The PFS is expected to show the viability of open pit based production targeting higher-grade (2 - 3 g/T and more) mineralization over a mining horizon of 3-4 years as an interim step towards the development of a larger production scenario in the future. This will reflect significantly better economics compared to the PEA which involved a bigger pit and higher capex scenario.
GBB.V has multiple pit designs and multiple underground designs depending on the grade desired. However, management favours 'higher-grade' to mitigate risk. GBB.V is focusing on a small open-pit, higher-grade, followed by underground via ramp from the bottom of the pit. Subject to favourable PFS, the plan is to start open-pit mining, starting with ~500,000 tonnes, yielding at least 100,000 ounces. GBB.V has a very experienced team of mining veterans that run a tight ship, and when Mining MarketWatch Journal looks at other mining operations of similar design to what is being proposed, it is entirely possible to hit those targets.
There are mills in the area that are in a position to offer custom milling arrangements for GBB.V's material. GBB.V has reviewed several proposals. Having the Granada mine production custom milled involves limited risk and modest costs (Mining MarketWatch Journal estimates $3 million - $5 million to start rolling.
Alternatively, GBB.V can do a rolling start with an onsite modular mill of its own. It is estimated ~$24 million - $30 million would need to be raised for this option, however the payback should be quick and has long-term advantages of capping costs, operational stability, and portability. GBB.V has received specs on a modular mill that can start out at ~500 TPD. The November 13, 2013 press release "Gold Bullion Development Corp. Granada progress update" and July 9, 2013 press release "Gold bullion Provides Update on Progress at Granada Mine" reveals all the pieces coming into place, including trenching to aid on positioning of the pit, and metallurgical test work for process flowsheet development.
GBB.V, with 242,394,174 shares outstanding (plus there are ~37.3M warrants and options, all out of the money) provides an ideal vehicle for investors seeking exposure to precious metals. The risk-reward characteristics are highly advantageous as the inherent value of its Granada project should push the share price and market cap higher.
The full Mining Journal review may be found athttps://miningmarketwatch.net/gbb.htm online.
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*NI-43-101 [December 2012] in situ numbers: 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.
**Targets: 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 per November 26, 2012 release) with subsequent drill programmes. The potential quantity and grade is conceptual in nature as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. 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.
Contact information:
James O'Rourke, Editor
Mining MarketWatch Journal
editor@miningmarketwatch.net