We all know the enormous potential of Gold Bullion Development’s (GBB, TSX-V) LONG Bars Zone going east – several kilometres of highly prospective strike length that includes LONG Bars Zone 2 (the old Aukeko Property) a couple of kilometres to the east of Gold Bullion’s Phase 1 Discovery Hole #17. If the two zones connect, GBB will have something absolutely enormous on its hands.
But now what is rapidly developing is a multi-directional dynamic at Granada following the latest round of assay results released Friday by the company that confirmed the discovery of significant mineralization in the far north and the far south of the Eastern Extension.
Yes, the LONG Bars Zone could end up being very, very long indeed. But it’s also becoming a lot wider, pushing out to the north in particular and even the south. This is a major bonus for Gold Bullion – President and CEO Frank Basa and his geological team at GENIVAR couldn’t be happier at the prospect of a potential doubling or better of the width of this major structure. It doesn’t take a rocket scientist to figure out the math in terms of the possible impact on potential ounces.
Here’s what’s happening and how we see it developing.
In the far northern section of the Eastern Extension, about 150 metres outside the northeast border of the Preliminary Block Model, Hole #108 returned an interval of 142 metres of 0.70 g/t Au as reported Friday by Gold Bullion. This hole was collared 30 metres north of Hole #55 which intersected nearly 100 metres grading 1.85 g/t Au within a wider interval of 360 metres of 0.60 g/t Au. Assays for 11 Phase 2 holes drilled around this area are pending (many had strong visuals as reported by GBB over the summer), and at BMR we believe there’s a strong probability that mineralization extends not only more to the north in the Eastern Extension, but also in an east-west fashion which means there could be a lot to be discovered immediately north of the Preliminary Block Model which presently covers an area 300 metres in width and 600 metres in length (2.4 to 2.6 million potential ounces as an exploration target, non 43-101 compliant, as announced by GBB April 22).
The Eastern Extension is already 200 metres wider (north to south) than the Preliminary Block Model. It doesn’t seem reasonable to us that there could be a zone of mineralization to the northeast of the Block Model but nothing to the immediate north. It seems GENIVAR is of the same opinion as the latest GBB drill map on its web site shows that they are following up drill holes inside the northeastern part of the Block Model with holes to the north outside the Block Model. Patterns are developing.
Gold Bullion news releases in September specifically referenced the northern portion of the Block Model, including the waste pile, as an area of high interest given an assay result from Hole #47, visual observations of specific holes, and known geological structures.
What this all means, we believe, is a probable northward expansion of the Preliminary Block Model just like the Eastern Extension is pushing to the north. This has significant tonnage implications for this deposit.
Meanwhile, there are new possibilities to the south after Gold Bullion announced results from Hole #86 Friday. This hole encountered near-surface mineralization in altered feldspar porphyry and brecciated quartz veining (meaning there could be a lot of faulting going on in this particular area). Hole #86 returned an interval of 1.00 g/t Au over 84.6 metres within a total interval of 127.5 metres (4.5 metres to 132 metres) grading 0.76 g/t Au. That’s a very solid result and confirms historical information, along with early data from Adventure Gold (AGE, TSX-V) which has claims in the south, that there are likely extensions to the south of Granada Pits #2 West and #2 East which were mined mostly in the 1930’s and most recently, on a smaller scale, just over a decade ago.
Significant mineralization has been discovered in the Eastern Extension, north to south, nearly 500 metres apart with the results from Hole #108 and Hole #86.
The LONG Bars Zone is very long and likely about to get longer in the months ahead. And it’s also getting wider with a new north-south dynamic which gives fresh credence to Granada developing into a potential multi-million ounce deposit. Gold Bullion is finding massive structure.
Hi
It seems like theres potential for 10milj ounzes in best case scenario.
How long in your opinion before mining can start?
2-4 years away?
Comment by bobo-blanco — November 22, 2010 @ 5:15 am
Excellent site. Always reading it. I just have no doubt in GBB, and I try to buy on dips, I like sales you know. I just have one qustion, do you have an idea of how long it will take to identify how big the deposit actually is?
2,5 Moz, is not the deal anymore, is there any plan to update?
Thanks for the respons!
/Swedish shareholder
Comment by Sundholm — November 22, 2010 @ 5:53 am
I believe this Phase 3 program, and more results from Phase 2, will give an even clearer picture of just how big this thing could be. We know the potential going east is huge—–what I’m seeing now, and probably why GENIVAR hasn’t taken the drill rig out further east just yet, is that GBB has discovered a major new area in the north that will ultimately expand the Preliminary Block Model considerably with of course the Eastern Extension growing to the north in addition to pushing much further east. Of course there’s new potential going south as well now after results from Hole #86. There’s a whole new multi-directional dynamic at play with Granada, and Adventure Gold has also reported discoveries to the west over their property through sampling. This is a game-changing moment for this play.
Comment by Jon - BMR — November 22, 2010 @ 6:24 am
How can you say that there could be further extension north of the prelim block if the holes which were drilled (although few) returned very poor results ei. 10-28, 10-26, 10-27
Comment by Yuri — November 22, 2010 @ 7:36 am
Hi! would like a comment on this, “do you have an idea of how long it will take to identify how big the deposit actually is?”.
Do you think the share price will stay at is current level for many months to come, its just seem that the market doesnt care about the good news the company release.
/tony
Comment by Tony — November 22, 2010 @ 8:14 am
Good question. Read the Morning Musings, just posted, which goes into some additional detail on the northward expansion. With regard to 26, 27, and 28 (northwest above the Block Model), these were the first 3 holes drilled in Phase 2. The fact they did not return strong grades doesn’t necessarily mean a thing. They may have given GENIVAR a wealth of information with regard to structure. We also don’t know a lot of the details regarding those holes or exactly what GENIVAR was trying to accomplish with them. Remember, GBB is very much still drilling for structure, and that was definitely the case with the first 3 holes of Phase 2. Keep in mind also that in a deposit such as this you’re going to have some weak holes – that’s just the way it is. So I wouldn’t read too much into 26, 27 or 28. Many more holes need to be drilled in those areas. We definitely know that GBB has hit a mineralized structure in the northern portion of the Eastern Extension – it likely goes further north, and also east-west. Given what we’re seeing over the northeast quadrant of the Preliminary Block Model, and in the northern section of the Eastern Extension, I don’t think there’s any doubt the Block Model is going to expand to the north.
Comment by Jon - BMR — November 22, 2010 @ 8:58 am
It’s going to take much more drilling to prove up the actual size of this deposit – maybe 200,000 more metres, I have no idea, GBB is looking at such a huge area here – but I suspect the market will start to get a much better feel for how big this could be in the coming few months as more Phase 2 results come in and Phase 3 drilling continues. It’s important to be patient. The company’s market cap is near an all-time high (over $90 million) and I think that says a lot for the respect the market has for this play right now. A couple monster holes could send GBB a lot higher very quickly.
Comment by Jon - BMR — November 22, 2010 @ 9:04 am