Gold Bullion Development: High Grade Million Ounce Gold Call Option in Quebec
Gold Bullion Development (GBB.V) is committed to commencing high-grade, low cost production at its 100%-owned Granada Gold Project in northwest Quebec. We had the opportunity to connect with CEO Frank Basa last week who was elated at recently receiving the final permits from the Quebec government to allow for the production of 25,000 ounces of gold per year for the next 3 years at Granada, the so-called “rolling start” in advance of a bigger plan. Smaller-scale open-pit production will help finance further exploration drilling and allow GBB to prepare for its goal of becoming a 100,000 ounce per-year producer (open-pit and underground).
Mr. Basa has over 30 years’ experience in gold mining and development as a professional hydrometallurgical engineer with expertise in milling, gravity concentration, flotation, leaching and refining of precious and base metals. Moreover, he is an expert on the Cadillac Trend where over 50 million ounces of gold have been mined historically.
According to its November 2012 resource estimate, Granada boasts 934,000 ounces of gold measured & indicated at an average grade of 2.21 grams/tonne with an additional 617,000 ounces inferred at an average grade of 2.23 grams/tonne, using a 1.0 g/t Au cut-off.
Gold Bullion has various milling options and those are being explored in light of increased activity on the Cadillac Trend in a substantially higher Gold price environment than was envisioned just 6 months ago.
“Our aim is not only to be a producer, but an efficient producer that can also de-risk this project as we implement our ‘rolling start’ and scale this up over the long-term,” explained Basa. “It’s also important to point out that there’s still substantial exploration potential in the LONG Bars Zone at Granada, at depth and along the east-west trend we’ve outlined. This gives our investors much to look forward to in the years ahead.”
A Preliminary Feasibility Study (PFS) released June 19, 2014, revealed robust economics for the high-grade rolling start based on a gold price of $1,400 CDN, nearly $300 below its current price.
While GBB starts with modest production at Granada, there is ample opportunity for expansion of both the quality and size of the resource. Only 20% of the LONG Bars Zone at Granada has been systematically explored to date; additional trenching and drilling are planned. Of special interest is the historic Aukeko area located 2 km east of the initial production pit. The average grade of the three bulk samples taken from this area in 1938 was reported as 7 oz/ton (239.9 g/t) Au (Willoughby, 1994).
Gold Bullion Development offers investors the opportunity to participate in an up-and-coming gold producer in a great jurisdiction with considerable potential for mine expansion and new exploration success. We look forward to exploration and operational updates from GBB over the coming months.
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