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Gold Bullion Development (GBB, TSX-V) delivered the baseball equivalent of a towering three-run home run over deep centrefield this afternoon: two absolutely stellar holes from within the Preliminary Block Model, and an ever-growing eastern extension where a major discovery clearly appears to be in the works.

Let’s get right to it and review the key information that was released shortly after Gold Bullion closed at 55 cents today:

1. Major Developments in the LONG Bars Zone East-Northeast Discovery Area

• For each and every Phase 2 hole so far (27 in total) in the east-northeast to intersect “significant” zones of altered feldspar porphyry with quartz veining (in addition to visible gold in many of these holes) is unusual and extremely encouraging.  Suffice to say, a few spectacular drill results could easily emerge from this area.  Basa’s statement (very strong words):  “We’re drilling for structure and we’re finding it consistently throughout the entire east-northeast.”

• GR-10-78, collared 250 metres east of Phase 1 discovery hole GR-10-17, was drilled to a vertical depth of 350 metres and encountered “large” alteration and intrusive zones along with VG.  Sounds like Hole 78 could even be better than Hole 17 – and do these holes just keep getting better going east?;

• Phase 2 drilling in the east-northeast is going at least twice as deep as Phase 1 drilling with “very encouraging” showings below 150 metres vertical depth.  Granada, much like Osisko’s Canadian Malartic, could be mined as an open-pit operation down to at least 300 metres vertical depth.  Given historical information from Granada and the nature of the “Cadillac Trend”, Gold Bullion could very easily hit some nice grades at depth, further enhancing the economics of this project;

• The drill map on Gold Bullion’s web site shows how GENIVAR has covered a wide area in the east-northeast with Hole 83 in progress, just south of GR-10-78;

• The pace of drilling in the east-northeast has picked up considerably over the past 2 weeks, suggesting GENIVAR is liking what it sees and is getting more aggressive;

• GENIVAR, never quick to rush to judgement, has now confirmed – without even seeing any Phase 2 assays from the east-northeast – that the LONG  Bars Zone geological structure does extend east of GR-10-17;

• Publicly available historical maps and information, obtained by BMR through the Quebec Ministry of Mines, confirm not only the immense potential of LONG Bars Zone 2 – 1500 metres to the east of GR-10-78 – but how LONG Bars Zone 2 could connect with LONG Bars Zone 1 through a very pronounced east-west trend that has a similar geological signature to the current area being drilled;

• The east-northeast extension of course is NOT part of the Preliminary Block Model potential non-compliant resource of 2.4 to 2.6 million ounces;

• The mineralized system at Granada “remains open in all directions and appears to be broad-based and near-surface” – ideal conditions for a potential large open-pit operation;

• Pending assay results from Phase 2 drilling in the extension area should keep the market on the edge of its seat – the coming days, weeks and months are going to be very interesting indeed.

2. Preliminary Block Model – Two Stellar Holes

It’s a very encouraging sign that the first four assayed holes from Phase 2 drilling include the two best results Gold Bullion has produced so far at Granada.  What this demonstrates, we believe, is that GENIVAR has a much better handle on the location and orientation of the fault structures at Granada (“late northeasterly-trending sigmoidal faults also host high grade gold mineralization” – 2006 Granada Technical Report available at Sedar) which is one reason we believe Phase 2 drilling will be even more successful than Phase 1 drilling.

GR-10-33, collared 100 metres north of Pit #2 East, was drilled to the southeast at minus-65 degrees in order to “test the LONG Bars Zone northeasterly trending fault structures”  and returned 123.5 metres grading 1.07 g/t Au.  This is the longest intersection of mineralization grading more than 1 g/t Au that Gold Bullion has encountered so far at Granada.

Sixty metres west of GR-10-33, GR-10-41 returned an interval of 75 metres of 1.50 g/t Au – significantly better than the previous best hole from within the Block Model (GR-10-12) which graded 0.91 g/t Au over 82.7 metres.

It’s important to point out, as Gold Bullion did in its release, that Holes 33 and 41 are in an area where very little historical drilling has taken place.

Holes 27 and 28, north of Pit #1 and the waste pile, weren’t nearly as stellar as 33 and 41 but nonetheless showed continuity of mineralization.  Holes 27 and 28 tested new areas in the northwest where four other holes were also drilled.

Keep in mind that the drill core grade in this type of deposit, as Basa has pointed out repeatedly, will almost always underestimate the actual gold content.  Gold Bullion’s large 2007 bulk sample clearly demonstrated this important point – the mill grade significantly exceeded the drill core grade.  Basa:  “Our 30,000 tonne bulk sample in 2007 graded 1.62 g/t Au and has given us a high degree of confidence in terms of what our grade would be in the event this potentially large deposit were to go into production.”

Could the Preliminary Block Model ultimately prove up more than 2.4 to 2.6 million ounces?  Absolutely.  In this case the “blue sky” is a few hundred metres down, maybe more, where hardly any drilling historically has taken place.

3. Moving Forward

• Phase 2 drilling is approximately 60% complete (12,000 metres);
• An even larger Phase 3 program will commence soon after Phase 2 finishes which will probably be around the end of September;
• Gold Bullion is building roads leading out to LONG Bars Zone 2 which is expected to be drill-tested later this year;
• Infill and definition drilling will continue within the Block Model pursuant to a 43-101 resource estimate.

A steady stream of assay results should start flowing sometime in August, at least that’s our assumption as there has now been almost three months of non-stop drilling.

At BMR we don’t give price targets or “buy recommendations”.  Everyone should always do their own due diligence as we have.  But suffice to say, today’s news from Gold Bullion is a game-changer which will give the company an even wider and more intense following.  To say that Gold Bullion has attained a new level in terms of its potential and respect goes without question.  GBB is the furthest thing from a stock promotion.  It’s the “real McCoy” with Osisko-style possibilities.  Aggressive and entrepreneurial junior gold explorers like Gold Bullion with significant discoveries make the Canadian junior resource market the most exciting and potentially rewarding market there is.

We first introduced Gold Bullion to BMR readers seven months ago, when the stock was sitting at just 7 cents, because we did our homework and believed wholeheartedly in the geological dynamics of the Granada Gold Property which is strategically positioned along the famous Cadillac Trend.  This has been an under-explored property with tremendous potential ever since it was first discovered in the 1920’s and mined for gold and silver in the early-to-mid 1930’s.  Gold Bullion’s drilling, as succcessful as it has been, has really only just scratched the surface of what is now a nearly 50 square kilometre land package surrounding the former mine.  We encourage our readers to continue to “THINK BIG” with Granada as the very best, we believe, is yet to come from this extremely compelling geological story.