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Sizing Up Granada And The LONG Bars Zone
From Rouyn-Noranda, Quebec – 11:30 pm EST 03/17/10

After three days at Gold Bullion Development’s (GBB, TSX-V) Granada Gold Property there’s no question we have a much better understanding of the scale and potential of this project. It’s one thing to sit in the comfort of an office and review technical reports, drill maps and assay results, and look at some nice pictures, but it’s quite another to actually strap on the boots, walk the property and get dirty and wet. It was our goal this week to get intimate with this property and that’s exactly what we did.

We encountered some knee-deep snow, some mud and a few obstacles to get to certain site areas and drill hole locations. We climbed some rocks and picked some up. We walked a lot and asked many questions. We spoke to geologists and metallurgists, and in general we got a great feel for the land and the possibilities and challenges ahead for Gold Bullion as it attempts to define a major bulk tonnage, open-pit gold deposit just six kilometres south of Rouyn.

We can now speak with a greater degree of authority on this project and we will state this emphatically: Gold Bullion has an incredible opportunity to turn the Granada Gold Property into a multi-million ounce deposit – near surface, bulk tonnage, open-pit. If you’re looking for serious “blue sky” potential in a mining exploration project, you have it right here with Granada. Bring out the drill rigs, drill and keep on drilling, Mr. Basa. Hundreds of holes and tens of thousands of metres. We believe that’s exactly what he’s going to do and we also believe he will succeed.

Areas to the north (the “Cadillac Trend” runs right through Gold Bullion’s northern claims) and the east hold the most potential at Granada – this covers a very large footprint – and will be priority targets once the next round of drilling starts, likely around the end of April/early May.

There’s evidence of mineralization almost everywhere at Granada, from the 400,000 tonne waste pile to the old mine workings to the rocks alongside the trails that lead out to the northeast discovery area. The LONG Bars Zone is generally quite flat or gentle sloping with limited overburden and an elevation of about 300 metres.

Below, we have a picture of Granada Mine Manager Karol Mikulash with Nathan Jourdain of GENIVAR, Gold Bullion’s geological consultant. They are standing at infamous Hole #17 , the easternmost hole drilled to date by Gold Bullion in the LONG Bars Zone (Karol on the right is a renowned metallurgist who’s worked on 10 mines in three different countries. He did Gold Bullion’s bulk sample and is tremendously excited about Granada’s prospects).



GR-10-17 intersected 65.5 metres of 1.21 grams per tonne gold (from 3.5 metres to 69 metres) within a wider interval of 0.953 gram per tonne gold over 99.2 metres, including 31.5 metres of 2.39 grams per tonne gold, and remains open at depth.

Prior to heading out to #17 today, we spent nearly two hours with Nathan and Karol at the core shack in town to examine three completed and reported Granada holes – #17, #12, and #1. Below are just two core sample photos we took from GR-10-17 – more to come from #17, #12 and #1.


GR-10-17

GR-10-17
Granada is a quartz vein system that interestingly is showing a porphyry component (felsic porphyry dikes appear to be associated with the quartz veins based on Gold Bullion drill results to date, the significance of which has yet to be determined). These are early days and there’s much yet that needs to be understood, but continued analysis of drill core and data (assays from 13 holes are still pending) along with more drilling will provide some answers. GENIVAR is a world class geological consulting firm and Gold Bullion is very fortunate to have them managing this project which is growing in scope and magnitude each day.

We have compiled a great deal of information over the last three days from our Granada site visit which we will be reviewing before issuing a comprehensive report in the near future.

The bottom line for now is this: The LONG Bars Zone (lots of new gold bars) is everything it has been made out to be and then some. As we head home we’re struck with the magnitude and potential of this large mineralized system that could ultimately hold millions of ounces. The prolific “Cadillac Trend” is showing its magnificence yet again.

[kjm]

I picked up a position in this one this morning. They are defining a large open pit in the general area of Osisko at the old Granada mine. Will have about 100mm o/s after the recent financing. Coffin Bros. recommend.




Gold Bullion Development Corp
Symbol GBB
Shares Issued 81,171,581
Close 2010-03-10 C$ 0.225
Recent Sedar Documents


Gold Bullion increases Granada landholdings


2010-03-11 11:32 ET - News Release

Mr. Frank Basa reports

GOLD BULLION MORE THAN DOUBLES LAND POSITION AT GRANADA, PREPARES FOR MAJOR NEW DRILL PROGRAM

Gold Bullion Development Corp. has more than doubled its Granada gold property land package along the prolific Cadillac trend with the designation of an additional 2,812 hectares with the Quebec Ministry of Natural Resources.

Granada, six kilometres south of Rouyn-Noranda, now comprises 4,893 hectares, a nearly seven-fold increase from the original 71 hectares the company started with at the former producing Granada mine in 2006.

"Gold mineralization appears to be near surface and broad based at Granada, extending into areas that were never drilled by previous operators as confirmed by our recently completed drill program," says Gold Bullion president and chief executive officer, Frank Basa. "This is an exciting land package that we are going to systematically and aggressively explore for a major bulk-tonnage, open-pit deposit surrounded by excellent infrastructure."

Gold Bullion is also very pleased to announce that Genivar, its geological consultant, has completed a preliminary resource block model for the Long Bars zone based on 26,000 metres of historical drilling at Granada, underground workings and three test open-pit bulk samples. Data from Gold Bullion's 2,817-metre drill program, which has resulted in a significant discovery in the previously untested northeastern area of the Long Bars zone, will be integrated into this block model. The company is eagerly anticipating additional drill results and expects to report on the Genivar block model in addition to the 13 remaining holes from the phase 1 and phase 2 drilling in the near future.

"The significant historical work at Granada has saved us both time and money," explains Mr. Basa. "Combined with our strategic approach and efforts over the last few years, including a successful 30,000-tonne bulk sample in 2007 that graded 1.62 grams per tonne gold, we felt extremely confident when we launched our first ever drill program at this property three months ago with an immediate goal of defining structure. The results to date are confirming our strong belief that Granada offers excellent potential for a large bulk-tonnage, open-pit deposit."

"We are now in a position to fast-track the exploration process at Granada," Mr. Basa states. "This will include testing further expansion of the strike length, depth and thickness of this mineralized system which is open in all directions, as well as definition drilling to establish grade. Our objective by year-end is to complete a very large phase 3 drill program, beginning this spring, and release a preliminary NI 43-101-compliant, inferred gold resource at Granada."