Wow, what a bolt of lightning after the market closed yesterday from Gold Bullion Development (GBB, TSX-V)! The company, which we first uncovered at 7 cents for BullMarketRun.com readers back in December, released stellar drill results from its Granada Gold Property located six kilometres south of Rouyn-Noranda, Quebec, along the prolific “Cadillac Trend”. This stock is now in serious play and many more eyes are now going to be focused on it (just remember where GBB was first mentioned!).
There can be no question now that Gold Bullion’s Granada Property has major potential as a large, open-pit bulk tonnage deposit. They are drilling economic grades (very similar to Osisko) over significant widths and at shallow depths. There is limited overburden at Granada which would also reduce mining costs. Yes, this is still the very early stages at this intriguing property, but Gold Bullion has investors excited now.
Tom Petty’s song, “Into The Great Wide Open”, came to me last night while pondering Gold Bullion’s results. Granada is The Great Wide Open right now. More specifically, Discovery Hole #17 leads Into The Great Wide Open (and so too does #15!)
Someone should construct a big sign and post it beside Hole #17 with an arrow pointing east and the words, “This Way to the Golden Highway”.
Just by looking at the drill map below, even a novice mining investor can understand why Hole #17 is so hugely significant. It was the easternmost hole drilled by Gold Bullion in its recent 25-hole program and delivered a near-surface result of 65.5 metres grading 1.21 grams per tonne gold within a wider interval of nearly 100 metres of almost 1 g/t Au (99 metres of 0.953). This was in an area never previously drilled at Granada (this has been Gold Bullion’s first-ever drill program at Granada, previous operators focused on only a small footprint around the original mine workings). Hole 17, we believe, is less than a mile from the property’s western border. Directly to the east (on the way to Osisko’s Canadian Malartic Deposit) is several miles of virgin territory. Hole 17 could be the Gateway to a Golden Frontier at Granada.
Astute investors may have noticed an error on Gold Bullion’s previous drill map. Holes 14 and 15 were reversed. The most northerly hole, then, is actually #15 – 90 metres northwest of #17. GR-10-15, a little over half a mile we suspect from the Gold Bullion-Yorbeau border, opens up great possibilities for GBB’s northern ground. This hole, reported February 8, intersected 73.8 metres of 0.88 g/t Au at shallow depths including 8 metres grading 6.34 g/t Au and 60.83 g/t Au over 0.8 metres.
To the south, GR-10-12 – 300 metres southwest of GR-10-17 – returned 68.8 metres of 1.07 g/t Au (from 16.2 to 85 metres) including 44 metres grading 1.54 g/t Au and 14 metres grading 4.28 g/t Au. This, too, was also a shallow hole.
East, north and south – Gold Bullion has scored a hat trick.
What’s also exciting is that not only are results for 13 more holes still pending, but Gold Bullion announced yesterday it is already planning and preparing for a large (our emphasis) Phase 3 drill program. “The immediate priority,” the news release stated, “will be to return to the east-northeast area of the LONG Bars Zone and continue further north and east with the goal of expanding this potential new resource.”
Oh yes, there’s that name – the LONG Bars Zone. We don’t know who came up with that catchy phrase – perhaps some Hollywood marketing whiz – but LONG is an acronym for “Lots of New Gold“. And there may very well indeed be lots of new gold at Granada.
We have stated this before: The best place to find a new mine is near an old mine. Just ask Aurizon Resources (ARZ, TSX) which recently released a NI-43-101 Pre-Feasibility Study of its Husco Deposit (two million ounces measured, indicated and inferred) at its Joanna Project just 20 kilometres to the east of Granada. Husco had even more humble beginnings than the Granada Mine. In 1948 and 1949, 45,872 tonnes of ore grading 6.58 g/t Au was mined at Husco in a 100-tonne-per-day operation, yielding 9,000 ounces. In 1973, ore reserves at Husco were estimated to be 955,000 tonnes grading 5.4 g/t. Very little happened with that fledgling property until Aurizon took it over with a fresh approach in 2006. After drilling nearly 500 holes they had a two million ounce deposit on their hands.
Can you imagine what Gold Bullion may potentially have after drilling 500 more holes???????????
A few sentences we really liked in Gold Bullion’s company-changing news release:
“Additional drill results from the recently completed exploration program…have confirmed the growing magnitude of this potentially large, near-surface bulk tonnage structure.”
“Gold Bullion’s drilling since December, and its land acquisition program, has greatly expanded the potential scale and geometry of Granada beyond what the Company first envisioned when it started with the old mine workings in 2006.”
“Mineralization has been encountered in each and every hole drilled so far by Gold Bullion and remains open in all directions.”
“It now appears this system is massive (Basa quote) which is why we increased our land package to 2,300 hectares and will explore it systematically with a great deal of anticipation and excitement.”
“A prominent zone of deformation, hyrdothermal alteration and quartz-veining extends for at least five kilometres around the old mine workings.”
Wow. Gold Bullion closed yesterday (prior to news) at 11.5 cents, giving it a market cap of only $9.3 million. At BullMarketRun.com, we don’t get into price targets. But we’ll say this: Gold Bullion’s northern neighbor, Yorbeau Resources (YRB.A, TSX) has a current market cap of almost $40 million. Yorbeau has jumped substantially since last summer after putting out some very good results as well. However, we believe that Gold Bullion’s Granada Property now has more going for it with its near-surface, widespread mineralization.
Let the fun begin.
