Gold Bullion Development (GBB, TSX-V) has just released an update and additional assay results from the Granada Gold Property, showing Granada is not only extending to the east but to the north and south as well.
Hole #86, the second most southerly hole drilled yet by Gold Bullion in the LONG Bars Zone, has returned 1.00 g/t Au over 84.6 metres within a near-surface interval of 127.5 metres (4.5 metres to 132 metres) grading 0.76 g/t Au. This confirms the visuals on this hole by GENIVAR and is highly significant as it could mean an extension to the #2 Vein within the Preliminary Block Model to the northwest. This also confirms historical reports that mineralization does extend to the south at Granada, and at very shallow depths which are ideal for an open-pit mining scenario.
In addition, Gold Bullion has drilled a hole 30 metres north of recently reported hole #55 that has returned an interval of 141.7 metres grading 0.70 g/t Au. The company reports that assays have yet to be received on 11 of 15 Phase 2 holes drilled in the area north, northeast and northwest of Phase 1 Discovery Hole #17 with current drilling focusing on expanding the continuity of the feldspar porphyry and quartz veining.
The fact that Gold Bullion is hitting nice intersections in the northern portion of the Eastern Extension suggests that the Preliminary Block Model could expand significantly to the north as well which has huge implications for tonnage and ounces.
We’re continuing to analyze the results but overall, there’s no question this deposit is building out in a very interesting and significant way.
Breaking News as the stock slides south!
Question for Jon;
This reaction is a duplicate of what happened last time; GBB announces it will release
news on a certain date….the daytraders run it up….the news is released and the
daytraders run it back into the dirt….
Why does the company insist on informing the daytraders of it’s next news release???????????????????
Hmmmm….Can you explain this or should I ask the next obvious question?
Comment by Paul — November 19, 2010 @ 7:35 am
The stock will rebound nicely next week. It is also time to buy at 62 cents. I like today’s slide.
Comment by Theodore — November 19, 2010 @ 7:51 am
have to say ur correct in this one Paul. Day traders killing this stk. if u monitor the trades, when news comes out, halarious, minuscule sells & buys, 200? 500? 1000? 2000? nothing serious going on here. Very few and far between 5k and up which is still childs play.
Comment by nikolay — November 19, 2010 @ 7:55 am
You’re exactly right – this is a low grade, high tonnage deposit with extremely high recovery rates. In that context, these are excellent results for GBB – very mineable grades. Keep in mind, also, that the mined grade at Granada has consistently been higher than the assay grades. You don’t have to look far to see many very profitable mines with the grades Granada has and even much lower. You need to understand what this deposit is all about – if it’s not your type of deposit, leave this story and go chase some high grade somewhere else. Also, in terms of grades, GBB hasn’t even started drilling for grade…..they’ve been focused on finding structure and they’re finding great structure all over……
Comment by Jon - BMR — November 19, 2010 @ 8:08 am
Very puzzling the market reaction. I would have thought up but Mr. Market says down so obviously I am missing something. They are demonstrating good grades and lots of thickness. This is Osisko II IMHO.
Comment by Ron — November 19, 2010 @ 8:10 am
Low grade does not mean the stock will stay that way. I bought another lot at 61 cents. Thanks for dumping.
Comment by Theodore — November 19, 2010 @ 8:15 am
Exactly, Ron. Intelligent post. The north-south, east-west dynamics here are powerful. Very good intersections at a time when GBB is only drilling for structure——grades and intersections will get even better as the drill pattern tightens up – and with larger diameter core drilling as well which is what GBB is going to have to do. This is very much shaping up as a huge volume deposit with 5+ million ounce potential.
Comment by Jon - BMR — November 19, 2010 @ 8:43 am
GBB is often called Osisko II. I know the Osisko story but Im not familiar with its property. Is it a low grade mine? What grades are we talking about.
I think todays results is goodreader news. Keep your stocks in a safe and dont try to trade. If we are sitting on 5Moz+ we can expect a short time mcap around 150-200MCad.
Comment by Oriley — November 19, 2010 @ 10:46 am
Oriley, Osisko’s deposit is 8.97 mil ounces proven and probable @ 1.16 g/t, 2.23 mil ounces indicated @ 0.99 g/t and 470 k ounces inferred @ 0.73 g/t.
GBB will be right up around the same range. The drills being used right now give ~ 30% lower then the actual grade in these low grade situations as was obvious/proven in phase 1 of drilling. Right now as mentioned by Jon GBB is only worried about structure. They have their bulk sample for a better idea of grade(was 1.62 g/t) as well as will probably drill a couple RC holes for grade in the spring by the sounds of it.
Comment by Tyler — November 19, 2010 @ 7:30 pm