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Frank Basa, Gold Bullion Development (GBB, TSX-V) President and CEO, is a hydrometallurgical engineer who knows how to effectively extract and mine Gold.  And how to find it, too.  Which is why GBB is so well positioned to take full advantage of the incredible bull market in Gold and junior mining stocks that is likely to accelerate in the coming months.  A company such as Gold Bullion with $10 million in cash, an advanced property with a growing deposit and the strong potential for major new discoveries, is going to be a leader in this bull market that is about to enter, in our view, an explosive new phase.

Today’s news from Gold Bullion was an important fresh step in the direction of Basa’s ultimate goal, a multi-million ounce near-surface open-pit deposit at the Granada Gold Property.  The LONG Bars Zone geological structure extends to the east of Phase 1 Discovery Hole #17, as confirmed by GENIVAR in a GBB July news release, and now it also extends to the north as demonstrated by today’s stellar results from Phase 2 Hole #55 (these results were actually even significantly better than #17).  To the south, several hundred metres from #55, a potential new discovery is on the horizon in Hole #86 given the very encouraging visuals reported on #86 a couple of months ago.  This Eastern Extension (500 metres north-south, 500 metres west-east), it’s important to remember, is outside the Preliminary Block Model where Gold Bullion has already outlined a potential 2.4 to 2.6 million ounces (non-compliant) based on historical drilling, underground workings, bulk sampling, and Phase 1 drilling.

Gold Bullion is aggressively drilling the LONG Bars Zone (a Phase 3 50,000 metre program is now underway) and that’s the secret to riches for GBB shareholders.  Granada is going to be all about volume – potential massive tonnage over a very wide area with LONG Bars Zone “2” (still to be explored) starting nearly 2,000 metres east of #55.

Hole #55 returned the highest grades to date in the Eastern Extension including 4.05 g/t Au over 40.5 metres (from a shallow 86.6 to 127.1 metres).  The 153-metre section from 86.6 to 239.5 metres grading 1.36 g/t Au is even more impressive than the 123.5 metre interval of 1.07 g/t Au in #17 that started all the excitement at Granada last March.

Hole #17, it has been proven now, was not a one-hole wonder in the Eastern Extension.  A lot more #17’s,  we believe, are on the way.  And keep this in mind:  BMR has made three site visits to the LONG Bars Zone over the last eight months.  We know the ground well.  We’ve done exhaustive research.  We’ve spoken to geologists.  We identified this company when it was trading at just 7 cents last December and predicted a strong chance of a major discovery.  This is the time to be really excited about just how big this could develop in the coming months.

A few things are very important to note about today’s results which also included four holes of lesser interest south and southeast of #55 and #17.  First, Gold Bullion is still drilling for “structure” throughout the Eastern Extension and even in the Preliminary Block Model.  GENIVAR, for example, is trying to get a better handle on the location of faults and their orientation.  The NQ drilling, with a small diameter core, gives GENIVAR’S geologists a good understanding of rock alteration which is critical but such a small core size will often miss some of the particle Gold and therefore understate the Gold content in the assays.  That’s why Gold Bullion’s bulk sample in 2007 was so important, and why they’ll probably have to do another one or some different type of drilling to quantify grade.  At the moment GBB is still drilling for structure.  When they get serious about drilling for grade, look out.

In terms of Hole #55, the 356.6 metre intersection of 0.60 g/t Au is outstanding.  The vertical depth on the hole was 175 metres, nicely within the 200 metres Gold Bullion is looking at for an open-pit operation.

Can a grade such as 0.60 g/t Au be mined profitably?  Absolutely.  One of many examples of that is Kinross’ very successful Fort Knox open-pit mine near Fairbanks, Alaska, where Gold equivalent production last year was 263,000 ounces at a cost of $546 an ounce.  At the beginning of this year Fort Knox had proven and probable reserves of 3.7 million ounces at an average grade of 0.45 g/t Au.

At BMR, our faith in the Granada Gold Property is unshakeable.  Today’s news from Gold Bullion was delivered in a very matter-of-fact way with a strong degree of confidence.  GBB is right on track and uniquely positioned to ride the huge Gold Mania Wave that we see coming.

Below is an excerpt from a BMR article last August on GBB – we believe it’s timely for readers to examine one more time:

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The Cadillac Fault, a regional structure that traverses through the northern edge of Gold Bullion’s claims, has indeed been the driving force, geologically, at Granada.  The Fault runs one kilometre deep and is spatially related to numerous multi-million ounce deposits including of course Osisko’s massive Canadian Malartic Deposit 65 kilometres to the east.  I’m not a geologist, but I’ve studied Granada intensely beginning more than a month before BMR first introduced Gold Bullion to its readers when the stock was sitting at just 7 cents last December.  I’ve spoken to numerous geologists regarding Granada and the “Cadillac Trend” in general.  Gold Bullion is searching for gold in one of the most highly prospective areas there is anywhere.

There is no denying that the LONG Bars Zone has the potential to develop into a multi-million ounce open-pit deposit.   Much deeper down, given the nature of the Cadillac Trend, this property also has potential as a high grade underground operation.  We’ve stated this before and it’s worth stating again – the best place to find a new mine is often near an old mine.  Granada produced 50,000 ounces of gold in the 1930’s and 80 years later Gold Bullion’s fresh approach to this former mine, and the nearly 5,000 hectare land package surrounding it, is starting to pay big dividends.

North of the Cadillac Fault, where one sees much more VMS-style mineralization, are volcanic rocks.  Sedimentary rocks are found south of the Fault where there tends to be considerably more faulting, increasing the chances of Gold mineralization (many secondary faults have developed from the Cadillac Fault).  Based on historical information and what has been reported so far by Gold Bullion, there is intense faulting and alteration throughout Granada.  One of the keys for GENIVAR, in our view, is identifying the location, dip and depth of these faults and chances are they have had success in doing that based on the highly encouraging news Gold Bullion issued July 13 and July 29.

Infill drilling continues within the Preliminary Block Model where Gold Bullion outlined a potential non-compliant 2.4 to 2.6 million ounces in late April.  Holes 33 and 41, released July 29, show the Block Model is on track but tighter spacing and much more drilling are still ahead.  Additional potential exists at depth.    Keep in mind, also, that this and other areas at Granada are renowned for particle Gold that in many cases won’t show up in drill results but will be processed in the mining procedure – the so-called “upgrading” effect that has certainly been seen elsewhere.  That’s why Gold Bullion’s large 2007 bulk sample (grading 1.62 g/t Au) was so important.

East of the Preliminary Block Model is where things get really interesting as this huge area has blue sky potential written all over it.  Historically, the Granada Eastern Extension has been under-explored but there is enough information – historical and current – to suggest there could be widespread, near-surface mineralization in this area through, in part at least, quartz veining and Gold that is carried in disseminated sulphides in feldspar porphyry.  A very large low grade “halo” effect could also exist here – in terms of its total mineralized surface area, the Eastern Extension could eventually dwarf the size of the current Preliminary Block Model.  If a lot of nice intersections of around a gram or better start coming in from the east, it will be “mission accomplished” for Phase 2.  And it wouldn’t be surprising to see a few spectacular holes based on the visuals.

As Gold Bullion reported July 29, “Each and every hole (north, south, east and west of GR-10-17)” has intersected “significant zones of altered feldspar porphyry (favorable for Gold mineralization) with quartz veining. Visible Gold has also been observed in many of these holes.

Gold Bullion appears to be encountering much more altered feldspar porphyry in the Eastern Extension.  Upcoming drill results from the east and extensive analysis by GENIVAR should give us a better understanding of what is really going on in this part of the LONG Bars Zone.  An interesting observation is made on page 88 of Willoughby’s 1994 report (“Geology, Structure and Gold Mineralization on the Granada Extension Property”) that we obtained through the Quebec Ministry of Mines a couple of months ago.  “Sulphides (mainly pyrite) are abundant in porphyry on East Granada, in the area of the Aukeko Shaft.”  Are they abundant in porphyry elsewhere as well?

Willoughby made numerous important observations regarding Granada in general in his 1994 report:

“A large circular feature interpreted from air photos encloses most of the Granada Mine Property and suggests an intrusive stock at depth, perhaps the feeder for the numerous sills and dykes mapped at surface.”

“The role of major northeasterly fault structures in the localization of high-grade zones as steeply dipping, northeast plunging ore bodies is considered significant.”

“The area of shearing and alteration covering the gold veins/structures on the Granada Mine Property (what Gold Bullion is currently drilling) comprise a relatively distinct zone measuring some 450 metres wide and 2 km long.  Previously designated the Mine Sequence…regional consideration and 1994 mapping results show the zone continues both east and west, attaining truly regional dimension.”

“The ongoing mapping and drilling of the Granada Mine and Granada Extension properties indicate an 8 km long zone of shearing, deformation and gold mineralization along the southern part of the Granada Segment, and in conjunction with other mineralization features apparent within the segment, is considered to be a regional feature.”

Oh, and we certainly shouldn’t forget about Big Bert in LONG Bars Zone 2.  As exciting as our visit was today, the golden highway hasn’t quite been completed out to that area yet so unfortunately we weren’t able to pay a visit.  Of course we’re referring to the Bert Vein near the old Aukeko shaft.  The average assay of three bulk samples (reported in 1938 by Hosking, according to Willoughby’s report) was 7 ounces Au per tonne.  Gold Bullion plans to visit Big Bert later this year as exploration moves further east at Granada.

With a strong team on the ground as we saw today at Granada, working a highly prospective and big project, there’s no question Gold Bullion Development has a golden opportunity on its hands.