Gold Bullion Development: Granada Gold Mine Update
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 9, 2009) - Gold Bullion Development Corp. (the "Company") (TSX VENTURE:GBB) announces it has received a custom milling agreement and a delivery schedule for the mill feed that will be mined from the Granada Gold Mine. The Company will review the terms and formalize the agreement within the next few days. The Company has received permission from the owners of the mill that a gravity circuit be installed at their site at Gold Bullion's expense. This will dramatically enhance recovery of the 'native' or 'free gold' that has shown to be prevalent in the Granada's mill feed. The Company has begun sourcing a mining and trucking contractor. The mill feed, after blasting, would not require further crushing as the custom mill can accept pit run material. This will lower overall mining costs. Delivery of mill feed is expected to begin prior to April 2010 for processing.
Genivar, the Company's geological and engineering consultants, has already compiled an internal report for the Company which includes 471 historic diamond drill holes comprising over 90,000 feet of drilling. As a result of this report the Company envisions an open pit operation. The Company has requested that Genivar redesign the open pit to extract mill feed from Veins 1 and 2 for processing in the custom mill. The Company has begun revising and amending the site permits in line with developing the mine into an open pit operation.
Genivar has been retained to complete a National Instrument 43-101 resource calculation for the Granada Mine. Additional drilling will be undertaken to confirm and increase this resource calculation. The drill program has already been designed and budgeted.
In addition to custom milling, the Company has been working with Gekko Systems, an Australian based company with offices in Canada, to design a mill for construction at the Granada Mine site that would handle the Company's long term production needs. This construction would be designed to have a limited environmental foot print. The whole project, from testwork through to commissioning a plant, can be completed in less than 12 months (depending on the size and complexity of the plant). Gekko Systems has already built two of these plants, one in each of Australia and South Africa, both of which have operated profitably for several years.
The Company also announces that it has granted incentive stock options to directors, officers and consultants to purchase an aggregate of 1,925,000 common shares in the capital of the Company, exercisable at a price of $0.10 per share for a period of five years, subject to regulatory approval. The options are granted in accordance with the terms of the Company's Stock Option Plan and the policies of the TSX Venture Exchange.
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 mineral properties, all of which are located in Canada. The Company is currently focused on the advancement of its Granada Gold Mine Property in Rouyn-Noranda, Quebec and Castle Silver Mine Property in Gowganda, Ontario.
Frank J. Basa, P.Eng., President and Chief Executive Officer
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.
