Part 1 of 2
At BullMarketRun we were excited about the potential of the Granada Gold Property and Gold Bullion Development (GBB, TSX-V) almost as soon as we started our research last November. Around mid-December we introduced Gold Bullion at BMR when the stock was sitting at just 7 cents and bids were about as scarce as a snowman in Florida. After some encouraging early news from its December/January drill program, Gold Bullion delivered some eye-popping assay results March 1 and everything suddenly changed including of course the stock price and volume. The Coffin brothers saw something and jumped on the story, giving it added legitimacy. Hits at BullMarketRun started going through the roof. We hurried out to Granada and spent three days on the ground in the LONG Bars Zone, returning home even more excited and bullish about Gold Bullion (we could almost dig the gold out with a spoon, it’s so close to surface). And then yesterday after the market close, kaboooooooooom – the company delivers the equivalent of a Hiroshima on any doubters or short sellers with a LONG Bars Zone Preliminary Block Model that lifts this project into a whole new realm.
Are we surprised? Not really. Our message with regard to Granada has been consistent all along but we’re screaming even louder from the rooftop this morning: A potential 5 million+ ounce gold deposit is indeed in the works at Granada and BMR suggests you hang on to your Gold Bullion shares for dear life because by Christmas you might be sitting on a fortune. Just an opinion, not professional investment advice, so take it for what it’s worth. But our intuition with GBB has been bang-on every step of the way so far.
There was a lot to digest in yesterday’s news. Below are the highlights as we see them followed by the possible implications in part 1 of this 2-part story:
1. LONG Bars Zone Preliminary Block Model (non-43-101 compliant) outlines potential for 2.4 to 2.6 million ounces of gold within a defined area that excludes the recent northeast discovery as well as a possible new discovery in the southwest portion of the property;
2. Impressive grade estimate within the parameters of the Preliminary Block Model – 1.38 g/t Au to 1.46 g/t Au. And keep in mind that historical work at Granada has shown that mined grades have usually been higher (quite often 10 or even 20%) than assay results;
3. A number of significant auriferous structures have been identified within a wide, east-west trending zone of shearing, alteration and quartz veining north and east of the Preliminary Block Model;
4. This is not just your regular and simple quartz vein-type deposit – something more interesting and involved seems to be going on here;
5. The possibility of a discovery of silver and base metal mineralization clearly exists at Granada – even if it is low grade, the positive impact on the economics of this deposit could be quite significant. All factors considered – location, near-surface mineralization and possible silver and base metal credits – Granada has excellent potential to be a very low cost operation if Gold Bullion succeeds here in proving a major deposit;
6. 20,000 metres of new drilling is set to begin almost immediately – “one drill rig (the implication is that more will be arriving) is already scheduled to be on the property by May 1.” These guys are serious and aren’t wasting any time.
Gold Bullion President/CEO Frank Basa is not the promoter type and even struggles sometimes doing interviews. He’s not one to make wild claims. In fact, he’s usually quite cautious and conservative. Which is why yesterday’s GBB news release carries so much weight and authority.
Even more eyes are now focused on Gold Bullion which in our view clearly has the goods to support a higher market capitalization which currently stands at $38 million based on yesterday’s 36 cent closing price and 105,298,581 outstanding shares.
Expect huge volume and possibly considerable volatility today as the market reassesses Gold Bullion in light of yesterday’s news. As we stated recently at BMR, the party has just begun with GBB. We strongly believe that the more the LONG Bars Zone is drilled, the better it’s going to look. With that in mind we likely won’t see the yearly high on the stock price until the end of the year.
Gold Bullion has become a very significant new player along the prolific “Cadillac Trend”. And you can be sure the bigger boys in the neighborhood are paying close attention.
