News Column

GOLD BULLION RECEIVES POSITIVE PRE-FEASIBILITY STUDY FOR THE ROLLING START TO GOLD PRODUCTION AT GRANADA

May 8, 2014



ENP Newswire - 08 May 2014

Release date- 07052014 - Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) announces it has received the Preliminary-Feasibility Study 'PFS' for the 'Rolling Start' at Granada.

All in total cash costs for gold production at the higher grades of 4.24 g/t gold from the open pits assessed by this study are US $797 per ounce at an internal rate of return of 169% percent before tax. The payback period for the $6.7 million needed to commence the 'Rolling Start' is just under 7 months with an NPV of $24.65 million before taxes discounted at 6% within 3 years.

The after taxes NPV has an IRR of 139% with an NPV of $20.04 Million. At this stage of the property development the PFS delineates gold production of 73,585 ounces at the annual rates of 25,669, 27,556 and 20,361 ounces per year respectively over the next three years.

The higher-grade resource to be mined for the 'Rolling Start' gold production is based on reserves of 569,000 tonnes at 4.24 g/t for 73.6 thousand ounces of gold at a cash cost of US $797 per ounce. Mill feed including dilution is 170,000 tonnes at 3.72 g/t gold in the Proven Category and 398,600 tonnes at 4.46 g/t gold in the Probable Category. These gold grades demonstrate and are indicative of the inherent flexibility the Company has with respect to grades contained in the current resource at the 11,000-hectare Granada Mine property.

The 'Rolling Start' study was prepared as a stand-alone project utilizing custom milling at a local mill and solely relates to those mineral reserves located within the open pits of the Granada deposit. The 'Rolling Start' does not take into account the underground mineral resources, which also comprise a significant part of the Granada Project.

The synergy of accessing an existing operating mill in the prolific gold producing Abitibi region of Quebec in tandem with the proposed open pit 'Rolling Start' mineral extraction plan brings the Company into position as a potential gold producer. During this initial development phase the Company is continuing to study and analyze the economics around underground mine development and will also engage in 'right sizing' property holdings.

The Company also has drill-defined targets to the north of the LONG Bars Zone aimed at corroborating earlier drill data that outlined the potential for an additional 1-2 million ounces of gold at grades of 3.0 to 4.2 grams per tonne. The current higher-grade resource estimation and the potential addition to the resource cover approximately 20 percent of the already explored LONG Bars zone. By increasing the input grade of the open pitable resource when practical, de-risking of the project will remain an ongoing priority going forward.

Frank J. Basa, President and Chief Executive Officer on progress thus far, 'We are very pleased with the PFS on the Rolling Start. Due to the dedication and diligence of Gold Bullion's technical team and consultants, we have delivered this study and a PEA within 20 months of completing the last drill program and are excited to see mining at Granada restart. This goal is consistent with our stated strategy to create shareholder value through successful exploration and development of brown field properties located in the prolific and prosperous Abitibi region.'

The delivery of the 'Rolling Start' Preliminary Feasibility Study completes the first stage of Gold Bullion's continuous development program at Granada. By advancing the Granada project to commercial production the Company has demonstrated positive economics, environmental forethought and social gain, while mitigating the technical, financial, and environmental risks of the project.

As permitting and social acceptance issues could have affected mineral reserves, the Company held 29 separate meetings prior to PFS completion. Five were with key stakeholders and there was one public meeting. The Company has already incorporated the majority of the feedback, views, and recommendations from those meetings into the PFS. Discussions with stakeholders will continue near-term to ensure the final Feasibility Study integrates all available input with the goal of enhancing and maximizing economic, environmental and social gains for all concerned parties.

Resources

In the context of re-engineering to increase the robustness of the Granada project, Mineral resources were remodeled with mineral zones having a minimum horizontal width of 7m down to elevation 237.5m. This resource model has been used for pit optimization and design for the 'Rolling Start' project. This model starts from the surface and pit bottom to elevation 237.5 metres.

In order to address mining underground, mineralized zones have been remodeled with 3 to 4 meters horizontal width below elevation 237.5 metres. Highlights include a Measured and Indicated combined underground gold resource of 325,450 ounces of gold at an average grade of 5.10 g/t gold plus 25,700 ounces Inferred at a grade of 7.14 g/t gold. The mineral resources are blocks above gold cut of grade (COG), composite and have been capped at 30 g/t for the estimation of Mineral resources. The density to convert volume to tonnage is 2.7. Mineral resources that are not Mineral Reserves do not have demonstrated economic viability.

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 near Rouyn-Noranda, Quebec, and its high grade Castle Silver Mine in Gowganda, Ontario. Additional information on the Company's Granada gold property is available by visiting the website at www.GoldBullionDevelopmentCorp.com and on SEDAR.com.

Contact:

Frank J. Basa

President and CEO

Gold Bullion Development Corp.

Tel: 1-514-397-4000.

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.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: ENP Newswire


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters