Granada Gold Project

The original Granada Mine site which covers just a small fraction of Gold Bullion’s nearly 11,000 hectare land package with mineralization open in all directions.

Gold Bullion Development Corp. (TSX-V: GBB) is aggressively exploring its 100% owned Granada Gold Property in north-western Quebec for the potential of hosting a high tonnage, near-surface deposit and a high-grade underground deposit.

Strategically located along the prolific "Cadillac Trend" in the Abitibi Greenstone Belt (65 kilometres west of Osisko’s massive Canadian Malartic Deposit), the former gold producing Granada Mine was acquired by Gold Bullion in 2006. The Company soon completed a successful large bulk sample (30,000 tonnes grading 1.62 g/t Au) and then began to steadily increase its land position around the former mine.

In December 2009, Gold Bullion began its first-ever drill program at Granada. (In the 1980’s and 1990’s nearly 500 holes were drilled by previous operators.) The phase I program entailed the drilling of 25 shallow holes totalling 2,817 metres with mineralization encountered in every hole.

Gold Bullion President/CEO Frank Basa at a Phase 1 hole in March, 2010.

The Company also made an important discovery to the north and east of where any previous mining had ever taken place at Granada. Hole GR-10-17, the easternmost hole drilled during Phase 1, intersected 65.5 metres of 1.21 g/t Au (from 3.5 to 69 metres) within a wider interval grading 0.953 g/t Au over 99.2 metres.

In the spring of 2010, the Company staked additional claims increasing its land position at Granada from 71 hectares to 4,893 hectares. An additional 6,000 hectares was subsequently added later that year in November bringing the total land package to 10,893 hectares as it stands today. The land package represents a 156-fold increase since 2006. The extensive mineralized area from the past producing #1 Pit in the west to the newly discovered Eastern Extension was given the name the LONG Bars Zone based on the acronym for "lots of new gold."

On April 2nd, 2012, the first NI-43-101 compliant resource estimate was released delineating roughly 1.5 million ounces of gold across all categories. The in situ measured resource is 97,700 ounces (3.02 million tonnes grading 1.01 g/t), indicated resource is 543,400 ounces gold (17.04 million tonnes grading 0.99 g/t), inferred resource is 846,600 ounces gold (23.93 million tonnes grading 1.10 g/t Au) using a cut-off grade of 0.40g/t.

The selected base case in-pit measured resource is 95,300 ounces (2.9 million tonnes grading 1.02 g/t), indicated resource is 435,600 ounces (12.49 million tonnes grading 1.08 g/t), inferred resource is 135,600 ounces gold (3.4 million tonnes grading 1.24 g/t Au) using a cut-off grade of 0.40g/t based on a Whittle-optimized pit shell simulation using estimated operating costs, a gold price of CAN $1300 per ounce and a corresponding lower cut-off grade of 0.4 grams per tonne gold. Click here for April 2nd 2012 press release.

In Q1 2012, a 3-hole drill program commenced at Granada that is close to the half way mark. This current drill program is planning for 3 holes with a wedge in each giving 6 pierce points through the projected mineralized zone. Roughly 6,560 metres will be drilled with the goal of intersecting mineralization at depth in order to evaluate a potential down dip depth of over 2,000 metres at 50 to 70 degrees dip to the north.

Of this total down dip length, Gold Bullion has thus far encountered gold mineralization of interest along 650 metres. As such, in theory, just 32.5 percent has been explored to date. The objective is to hit a minimum of 2 of the 5 known mineralized zones with thickness greater than 3 metres and grades at or above 3 g/t Au.

Near surface, the Company is in the exploration range for low-grade deposits of 10 to 20 ounces per metre drilled as compared to Osisko at 6,846 holes drilled for 789,707 metres at 1.37 grams per tonne for 8.6 million ounces of gold and Detour at 5,877 holes drilled for 889,520 meters at 1.08 grams per tonne for 17.67 million ounces of gold. Their respective ounces per meter drilled are 10.89 for Osisko and 19.86 for Detour. The Company is using this rule of thumb and expects to be in the lower range for the LONG Bars Zone of which overall approximately only 10 percent has been explored thus far.

The data from this drill programme will be compiled with the data from 83 holes that were not included in the first resource estimate to produce an updated NI-43-101 compliant resource estimate anticipated by Q4, 2012.

Mineralization remains open in all directions and at depth at Granada with only a very small portion of the property having been systematically explored. The Granada Gold property is surrounded by excellent infrastructure and is located just five kilometres south of Rouyn-Noranda, a community of approximately 40,000 with a rich and lengthy mining history.