VANCOUVER, Aug. 31 /CNW/ -
Mr. Frank J. Basa reports:
Gold Bullion Development Corp. (GBB, TSX.V) (the "Company" or "Gold
Bullion") is pleased to report that Phase 2 drilling continues to expand
the LONG Bars Zone Eastern Extension mineralized area at its 100% owned
Granada Gold Property in northwestern Quebec. Gold Bullion is
aggressively exploring Granada, located five kilometers south of
Rouyn-Noranda, as a potential near-surface, open-pit deposit along the
prolific "Cadillac Trend" where numerous multi-million ounce deposits
have been discovered and developed.
The LONG Bars Zone Eastern Extension is outside the LONG Bars Zone
Preliminary Block Model where a significant potential non-compliant
resource was detailed in the Company's April 22, 2010, news release.
A total of 41 Phase 2 holes have now been completed in the Eastern
Extension covering an area measuring 450 metres north-south and 450
metres east-west. Over the last few weeks GENIVAR, the Company's
geological consultant, has had the Eastern Extension drill rig operating
mostly in between sections previously drilled to verify their
continuity. Large alteration and intrusive zones have been identified
in holes north, south, east and west of Phase 1 discovery hole
GR-10-17. Visible gold, associated with pyrite and arsenopyrite, has
also been observed in feldspar porphyry intrusions particularly in the
northern half of the LONG Bars Zone Eastern Extension.
Infill drilling continues within the Preliminary Block Model where 43
Phase 2 holes have been completed (initial assays were released July 29,
2010, and included an interval of 1.07 g/t Au over 123.50 metres in
A total of 17,000 metres of Phase 2 drilling, 85% of the planned
program, has now been completed throughout the LONG Bars Zone
(Preliminary Block Model plus the Eastern Extension). Mineralization
remains open in all directions.
The Company expects to release additional assay results the week of
Meanwhile, Gold Bullion is pleased to announce that it has completed a
new agreement with Mousseau Tremblay Inc. ("MTI") to acquire the
remaining 49% ownership interest from MTI in two mining leases related
to the Granada Gold Property.
Pursuant to the terms of a Mining Lease Purchase Agreement dated July
14, 2010, Gold Bullion has acquired the remaining 49% interest in two
mining leases from MTI in consideration of a cash payment of $175,000,
resulting in a 100% ownership of the leases. The mining leases are
subject to a 2% Gross Metal Royalty ("GMR") on the value of all metals
produced from the two mining leases, together with a 1% NSR royalty in
favour of MTI. Gold Bullion has the right to purchase, at any time, 50%
of the GMR for the sum of $1,000,000. This new agreement on the two
mining leases replaces a Lease and Purchase Agreement between Gold
Bullion and MTI dated July 4, 2006, and amended August 10, 2006,
September 20, 2006, and October 19, 2006.
Gold Bullion has also replaced a 2008 Memorandum of Understanding with a
Mineral Claims Purchase Agreement with MTI dated July 14, 2010, to
acquire a 100% ownership interest in 26 mineral claims (approximately
1,100 hectares) adjacent to the former producing Granada Mine. Pursuant
to the agreement and subject to regulatory approval, Gold Bullion will
issue 750,000 common shares as payment to MTI. In addition, twenty-three
of these mineral claims are subject to a 1% NSR royalty in favor of a
Gold Bullion's total Granada Gold Property land package, 100% controlled
by the Company, comprises 4,893 hectares after 2,812 hectares (99
claims) were designated with the Quebec Ministry of Natural Resources
earlier this year and recently approved.
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 Gold Property near Rouyn-Noranda, Quebec, and its high grade
Castle Silver Mine in Gowganda, Ontario.
For more information on Gold Bullion Development Corp. (TSX-V: GBB, OTC
PK: GBBFF), visit our web site: href="http://www.goldbulliondevelopmentcorp.com/">http://www.GoldBullionDevelopmentCorp.com.
The scientific and technical information in this release was prepared
under the supervision of Mr. Frank J. Basa, P.Eng., Gold Bullion's CEO
and President, who is a member of the Ontario Association of
Professional Engineers and a "qualified" person in accordance with
National Instrument 43-101.
"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.
For further information: For further information:
Frank J. Basa, P.Eng., President and CEO: 1-416-625-2342
Roger Thomas, Director: 1-613-292-2438