BEAVER & VIOLET SILVER PROPERTIES
On February 14, 2012 Gold Bullion Development Corp. announced an option agreement with Ansil Resources Ltd. that gave Gold Bullion the option to acquire 100% ownership of both the Beaver and Violet silver properties located in the township of Coleman, Ontario. Gold Bullion Development Corp. paid Ansil Resources $10,000 to acquire ownership of both properties.
Gold Bullion Development Corp. is also required to incur an aggregate of $100,000 in expenditures on the properties over the next seven years and must make annual payments to Ansil Resources for a period of five years in an aggregate amount of $60,000 for pre-payment of a 3% net smelter return royalty held by Ansil Resources. Gold Bullion retains the right to purchase the 3% NSR royalty by paying $1.5 million to Ansil Resources for each percentage point of the NSR royalty.
The Beaver property consists of one single 20-acre claim located near the town of Cobalt, roughly 80 kilometres southeast of Gowganda, Ontario, specifically, N part, NW1/4, N1/2 Lot 1, Concession III in Coleman Township.
Beaver Consolidated Mines Ltd. produced 221.7 tonnes silver (7,127,858 ounces) from the Beaver Property in the period between 1907 and 1940. According to historical records, the silver was mined from near-vertical Ag-Co-Ni veins near the upper contact of a shallow Nipissing diabase intrusive. This intrusive crosscuts Archean age sedimentary and volcanic rocks.
Production from the mines adjoining the Beaver Mine directly to the South and West included the Temiskaming Mine, 376.9 tonnes silver (12,118,796 ounces), Brady Lake Mine, 96.4 tonnes silver (3,100,000 ounces), Cobalt Load, 139.8 tonnes silver (4,493,725 ounces) and the Christopher Mine, 127.5 tonnes silver (4,100,000 ounces).
Between 1977 and 1989 Agnico Eagle Mines produced 124 tonnes silver (3,986,761 ounces) broken down as follows: 122.96 tonnes silver (3,953,319 ounces) from the Cobalt Lode and Duchess claims south of the Beaver property, 0.929 tonnes silver (29,878 ounces) from the Beaver property and 0.111 tonnes silver (3,564 ounces) from the Brady Lake claims. All later production was from the lower contact area of the Nipissing diabase.
Agnico Eagle accessed the properties from the 1,600-foot (487.68 metre) level of the Beaver Shaft and later from a cross cut driven from the Temiskaming Shaft. Gold Bullion management believes that diamond drilling of the lower contact area of the Beaver property is warranted to test a near flat fault known to exist in the Beaver property. A similar flat fault in the Duchess and Cobalt load appears to have been a controlling feature in the ore mined by Agnico Eagle.