Yes, we are continuing to highlight Gold Bullion Development Corporation (GBB, TSX-V) because this is a situation we are genuinely incredibly excited about and we want our readers to make some serious money in the days and weeks ahead by being positioned in this play before the masses jump all over it. Bids are building and this stock is showing all the technical signs of exploding to the upside very soon. Some important fundamental factors, we believe, will ignite that explosion.
Here’s our take on what’s happening right now at Granada:
Company President/CEO Frank Basa knows this property and the former producing Granada Mine like the back of his hand. Basa and Gold Bullion’s geological consultant, Genivar, knew exactly where to drill and what they were looking for – an expansion of the gold resources – in the 11-hole program that took place last month, the first time Gold Bullion has drilled Granada. They have an extensive historical drilling data base to work with (471 holes, 26,000 metres). A non-compliant, all-category estimate of nearly 300,000 ounces of gold exists at Granada (A.C.A. Howe, 1994), so we know that Gold Bullion is not drilling into cow pasture.
In BullMarketRun’s interview with Basa last week, he was – not surprisingly – extremely tight-lipped about those drill holes. But I’m a seasoned reporter and I came away from that interview with an unquestionable impression that Basa, a seasoned miner, is looking forward to assay results from those 11 holes with great anticipation.
Gold Bullion’s December 29 news release speaks volumes about what could be unfolding at Granada:
1. The original 1,000 metre drill program was immediately expanded by another 2,000 metres. When something like that happens, it’s safe to assume they must have liked what they saw in the core from the first 11 holes;
2. They weren’t drilling just within the heart of the Granada Mine – some step-out holes were also drilled;
3. This is really intriguing. We are convinced, based on one sentence in that news release, that Gold Bullion has hit silver, copper and nickel mineralization at Granada (no one has ever recovered nickel from that area, so why nickel would be showing up we don’t know). We base that opinion on the fact that Gold Bullion stated it is assaying specific holes for silver, copper and nickel. That’s “code language”, in our view, for hitting some very interesting mineralization. How significant this turns out to be will be answered in the very near future when those assays come out. Gold Bullion is attending the World Resource Investment Conference January 17 and 18 in Vancouver, and you can be sure they are doing whatever they can to get some results by then which is very possible if these assays are being done on a rush basis.
The Granada Mine will be a low-cost gold producer, and the value per tonne will increase significantly if silver and base metals enter into the equation (Basa is already in detailed discussions with Gekko Systems of Australia on a special processing plant for Granada that can very efficiently recover precious and base metals at the same time and leave a low environmental footprint).
Just to the north of Gold Bullion, Yorbeau Resources (YRB.A, TSX) is getting exciting results from its Rouyn Property (Yorbeau’s market cap has rocketed from about $13 million to $42 million over the last four months). Some 40 miles to the east, of course, on trend, is Osisko’s massive Canadian Malartic Deposit (10+ million ounces).
“It’s like the golden highway, it’s amazing,” Basa explained to me in my 30-minute interview with him last week. “If you’re organized, if you have a good exploration team, you’ll hit it and you’ll develop good resources. That’s what Osisko did. They took an expired, exhausted mine and took a fresh approach to it. We know that deposit very well. People at Osisko did a phenomenal job tying up a ‘worthless’ property with huge environmental liabilities. I feel even the ounces they’ve reported are a little low. Once they get into production they’ll have more gold. It’s the nature of the Cadillac trend.”
Basa is feverishly trying to add to Gold Bullion’s land package which now encompasses an area 2 km x 7 km (about 2,300 hectares). The actual Granada Mine covers approximately only five percent of those holdings, meaning 95% of the Granada Property was unexplored by Gold Bullion when they started drilling last month. Blue sky potential here? Absolutely. Same situation that Yorbeau was in before it hit a couple of sweet zones.
May 19, 2005, is when it all started for Osisko (read the news release below). Is it Gold Bullion’s turn now?
Osisko Exploration Ltd (C-OSK) – News Release
Osisko Exploration releases Malartic drill results
2005-05-19 08:18 ET – News Release
Shares issued 32,061,695
OSK Close 2005-05-18 C$ 0.32
Mr. Robert Wares reports
OSISKO RELEASES FINAL PHASE ONE DRILLING RESULTS FROM MALARTIC
Osisko Exploration Ltd. has released the results from the last four holes of the phase one, 13-hole drill program on its 100-per-cent-owned Canadian Malartic gold property, located in the Abitibi region of Quebec. The program was designed to confirm the potential for a bulk tonnage gold deposit within the F zone, one of five known mineralized zones on the property that collectively contain a significant near-surface historical gold resource (see news as reported in Stockwatch on Nov. 23, 2004, and April 8, 2005).
Results of the last four holes are as follows:
Hole No. From To Length Au
(m) (m) (m) (g/t)
CM05-657 1.0 140.5 139.5 1.16
CM05-658 2.5 165.5 163.0 1.15
CM05-662 5.9 57.2 51.3 1.01
and 115.6 130.2 14.6 1.58
CM05-663 3.0 100.9 97.9 1.70
Holes CM05-682 and CM05-663 were drilled at the western and eastern extremities, respectively, of the F zone and these portions of the mineralized zone were not included in the calculation of the historical gold resource. The F zone historical resource calculation was restricted to the central portion of the deposit and was based on a strike length of 210 metres, widths of 40 metres to 120 metres, and a maximum depth of 105 metres.
All 13 holes of the phase one program were drilled vertically and intersected significant gold mineralization (see news as reported in Stockwatch on April 8, 2005, and May 4, 2005). These results, along with drilling data from the 1980s, confirm that the F zone has a minimum strike length of 415 metres, a width of 65 metres to 100 metres, and a depth from surface varying from about 50 metres to 160 metres. The F zone is subvertical, strikes in an east-to-west direction, and consists of disseminated fine gold and pyrite mineralization hosted by potassic-altered, partly silicified, fine-grained granodiorite porphyry and metasediments.
Osisko management is very pleased with these results, which confirm the porphyry-gold nature of the mineralization and the economic potential of the property. Management is certain that the historical gold resource on the F zone can be significantly increased, given that the strike length of the deposit has been doubled. These factors are important to the company’s objective of defining an economic, bulk tonnage gold deposit on the property that is amenable to open-pit mining.
A drill hole location map is available for review on Osisko’s website. The average grades were calculated using a lower cut-off of 0.5 gram per tonne gold over 10 metres. All reported assays were done by standard 50-gram fire assaying-AA finish at ALS Chemex laboratories in Val d’Or, Que.
Robert Wares, PGeo, president of Osisko, is the qualified person responsible for the preparation of this news release.
