- The calculated head grade for gold showed an increase of 33
percent over the assayed head grade, indicating the potential
exists for a significant increase in the resource
- Overall recovery of 97.2 percent on gold from conventional
gravity and flotation concentration
- Base gold grade increased to 4.86 g/t gold by gravity and
flotation concentration
- The amenability of the mineralized material to concentration
both increases the resource size while reducing all-in mining cash
costs
- Moving forward with the Gold Royalty concept, a gold dividend
will be attached to the current common shares
VANCOUVER, May 7, 2015 /CNW/ - Gold Bullion Development
Corp. (TSX-V: GBB) (OTCPINK: GBBFF) (the Company or "Gold Bullion")
has received excellent metallurgical test work results in advance
of the Rolling Start to gold production at the Granada Gold Mine
project in Rouyn-Noranda, Quebec.
Work was done on what the Company has determined is the existing
base grade of the gold deposit. The base grade is defined as the
lowest consistent grade of the mineralized zone when all material
is mined with a low waste to ore ratio.
The assayed and calculated head grade ranged between 0.45 and
0.60 g/t gold. The calculated gold head grade is 33 percent higher
than the assayed head grade and lends credence to the 30 percent
historical increase in the grade consistent with and documented
when the mine was producing in the 1930's. At that time, the
assayed mine grade mill feed was compared to the production grade
calculated from the poured gold bar ounces with over margin
improvement of 30%.
These latest test results show the highest overall gravity and
flotation concentrate achieved was 97.2 percent at a mass yield of
11.2 percent to produce a gold grade of 4.86 grams per tonne from
the base grade of 0.45 g/t gold in the mineralized zone. It is now
believed that reducing mass yield by flotation via a more
environmentally friendly process can increase the upgrade
ratio. Cyanide leaching of the concentrate resulted in a gold
recovery rate of 90.6 percent. This test work was conducted by
Gekko Systems Limited in Ballarat, Australia on a single composite 260-kilogram
mineralized drill core samples from Granada Mine property.
According to Frank J. Basa, CEO,
"The results of this test work are significant and it is now clear
the project benefits from increasing its size due to the
amenability of the mineralized material to simple concentration
thereby lowering reagent consumption and due to a low waste to ore
ratio that will reduce overall operating costs. The Granada Gold
Mine is one of the largest, most advanced undeveloped gold deposits
in the Abitibi region that lends itself to staged development."
The Granada Mine is located on the prolific Cadillac trend with
property drilling to date consisting of 88,467 meters in 424 holes
plus historical drill results of 30,655 meters in 481 holes. The
current NI 43-101 measured and indicated resources of the Granada
Mine property total 1,605,000 ounces of gold contained in
47,475,000 tonnes grading 1.05 g/t gold with a cut-off grade of 0.4
g/t and with an inferred resource of 1,033,000 ounces gold in
29,975,000 tonnes grading 1.07 g/t gold. The NI 43-101
figures were released in the Company's Preliminary Economic
Assessment (PEA) on February 4, 2013,
effective December 21, 2012 and are
exclusive of the historical drill hole data.
Work Program Going Forward
The Company's geological consultants have been directed to
calculate resource estimates at 0.7 and 1.5 g/t gold respectively.
Both revised resource estimate updates will include the historical
holes after which a model will be developed for the new resource to
maximize the advantage offered by the custom milling available in
the region.
Royalty Shares Update
The Company is proposing to grant an NSR (net smelter return) of
1 percent per 1 million ounces of the resource, to be attached to
existing common shares of the Company, pro-rated to the current
shareholdings. It has been determined that attaching a gold
dividend to the existing shares with the same parameters is the
best option for shareholders. The Company plans to cap the NSR at 3
percent but should the resource exceed 3 million gold ounces in all
categories a windfall clause will be added whereby shareholders
will be entitled to exceed the 3 percent NSR cap depending on
future conditions pertaining to the eventual resource size or if
market conditions warrant under any circumstance.
The Company intends to implement the NSR prior to production so
it will be available at such time as gold production commences.
Under the current resource estimates at 1 g/t gold, the number of
gold ounces that existing common shareholders are entitled to is
69,900 ounces of gold. This works out to 0.232 ounces per 1,000
shares in the case of 69,600 ounces based on 300 million shares
outstanding over the entirety of the mining project as supported by
the current resource.
The Company intends to calculate two revised mineral resource
estimates for measured-indicated and inferred which will be
prepared by an independent QP and may include the filing of a
technical report in accordance with NI 43-101, each at a different
grade and is reviewing regional valuations for NSR's currently in
place. Due to currency swings and gold price fluctuations the
Company has not yet put a valuation on the gold that shareholders
are entitled to.
The Company will hold a special meeting of shareholders to seek
approval to amend the articles of the Company in order to allow for
the NSR as well as to consider a share consolidation to better
access low risk funding for the development of the Granada Mine
property. Additional information will be provided in the near
future.
The transactions are subject to approval by shareholders and
regulatory authorities including the TSX Venture Exchange.
Qualified Person
The technical information in this news release was prepared
under the supervision of Mr. Frank J.
Basa, P. Eng., Gold Bullion's President and CEO, who is a
member of the Ontario Association of Professional Engineers and a
"Qualified Person" in accordance with National Instrument
43-101.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior
natural resource company focusing on the exploration and
development of its Granada Property located on the prolific
Cadillac Trend near Rouyn-Noranda, Québec. Near term gold mining
operations will focus on high grade near surface material that will
be trucked to Iamgold's nearby processing facility. The
project economics remain robust with all in cash costs forecast at
US $797 prior to the drop in fuel
prices. Should the project proceed to the next level of assessment
and ultimately to development and long term production which will
act as a share price catalysts. Additional information on the
Company is available by visiting the website at
www.GoldBullionDevelopmentCorp.com and on SEDAR.com.
"Frank J. Basa"
Frank J. Basa, P.Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve
inherent risks and uncertainties. Actual results may differ
materially from those currently anticipated in such statements.
SOURCE Gold Bullion Development Corp.
