VANCOUVER,
July 9, 2013 /CNW/ - Gold Bullion
Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the "Company" or
"Gold Bullion") is providing an update on continuing activities at
the Granada Gold Property in Quebec. The Company intends to provide an
update on the progress at the Castle Silver Mine in Ontario at a future date.
Despite challenging market conditions and
materially lower precious metal prices, the Company is progressing
on multiple fronts at the Granada Gold Property. The Company is
revising both the rolling start schedule and the processing tonnage
based on recently-received documents from Company consultants and
from the potential processing plant supplier.
The Company has completed the recently announced
450-metre trenching program that was undertaken to further evaluate
the near-surface mineralized zones of the potential open pit at the
Granada Gold Mine. Assays from channel samples taken from the
trenched areas varied from 22.42 grams per tonne Au over 1.04
metres to 0.01 grams per tonne Au over 0.82 metres. The higher
grades were from samples in the eastern section of the extended
LONG Bars zone. Significant visible gold was also encountered very
near surface at a depth of 10 centimetres in the western area of
trenching.
The Company has completed the metallurgical test
work at SGS-Lakefield and is nearing completion of the test work at
Gekko in Ballarat, Australia for
process flowsheet development. The results received thus far
indicate a 480 tonne per day Python 200 - 20tph Environomic
Processing plant is optimal for current requirements. The
current flowsheet proposal indicates gravity, then flotation,
followed by cyanidation of the flotation concentrate as the optimal
configuration to produce a gold bar. The Python plant is designed
to be installed underground which can reduce operational costs by
15-25 percent. Initially it would be installed on the surface
during the rolling start evaluation of the mineralized extended
LONG Bars zone at the Granada
site. The underground installation would follow in due course.
The Company is making steady progress on its
environmental studies and tests. In addition to the base line
study, the Company conducted packer tests for the hydrological
study - an additional requirement for the Certificate of
Authorization (CofA). The packer test is meant to test permeability
of the rock by sections using boreholes. In selected holes and at
various depths (based on geological description and fracturing) two
balloons were lowered to specified depths and were then inflated.
Water under pressure was then injected into the now-isolated zone
to measure its permeability with resulting data used for the
hydrogeological modelling of the open pit, for dewatering and for
impact of potential water draw down on neighbouring water
wells.
A request for a CofA will be prepared by the
Company's environmental consultants with November 2013 as the targeted time frame for
submission to the Ministry of the Environment. The Ministry will
then require between 75 and 180 days to analyse the request and
either issue or deny the CofA.
Back on September 10,
2008, the Company received 40 statements of offence pursuant
to the Environment Quality Act (Québec) for allegedly
failing to comply with certain conditions of its permit for a
current project (at that time) on the Company's Granada property and for non-respect of the
Act. During the evaluation of the Granada Property in 2006 and 2007
the Company undertook the operation of a third party mill on the
Granada Property. The Company encountered operational problems with
the mill at that time. The statements of offence relate to the
period from October 6, 2006 to
November 14, 2007.
On March 15, 2013
the Company settled the case by pleading guilty to 18 of the
statements of offence with the remaining 22 statements of offence
withdrawn by the prosecution. The Company agreed to pay the minimum
fine on each of the 18 statements and fees at the rate established
by regulation of the Minister pursuant to section 116.1.1 of the
Act relating to the costs of sampling, analysis, inspection and
investigation for the penal proceedings instituted for the purposes
of the Act.
The Company proactively requested that the CofA
be revoked and has since had the third party mill removed from the
Granada Property.
The Company is now in its third year of the
waste pile desulfurization evaluation process. Last year, 70,000
tonnes were sold to a local contractor for evaluation purposes with
all proceeds from the waste rock going to a local charity. Waste
rock material has been used to build on-site roads to drill
targets, for the upgrade of the municipal road to the mine site and
for the improvement to recreational trails on the Granada
Property.
The Company has also undertaken work to
stabilize the historic tailings from the thirties, (now owned by
the Province of Quebec), and has
developed a process to stabilize the tailings.
Gold Bullion has also just received the updated
project schedule and the Preliminary Feasibility Study (PFS) is now
targeted for delivery by SGS in October
2013. The PFS was undertaken with the objective of lowering
the capital costs of the project as well as the cost per ounce of
gold by increasing the grade of the gold to be processed. The
Company anticipated a market correction in the price of gold prior
to the completion of the PEA (February 4,
2013 effective December 21,
2012) and has therefore taken steps to manage the risk of
market uncertainty. The Company has also taken into consideration
the coming changes to environmental requirements and has begun a
program of repurposing the waste rock for non-mining uses with the
bulk to be used as a rock sculpture on the Granada mining property. The tailings, too,
are being considered for repurposing and have been separated into
low-sulfide and high-sulfide tailings for reuse and disposal. The
Company's long term objective is to build and operate a mine that
can adapt to market conditions, undertake repurposing of waste
products and have a minimal environmental foot print while being
out-of-sight and sound in its surroundings.
Upon receiving the CofA, the Company will be
able to start project construction - subject to financing and
budgeting - in the first half of 2014.
Claude Duplessis,
P. Eng., is acting as the qualified person (QP) for Gold Bullion
Development Corp. in compliance with National Instrument 43-101 and
has reviewed the technical contents of this press release.
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 its Granada Property near
Rouyn-Noranda, Québec.
Additional information on the Company's Granada gold property is available by visiting
the website at www.GoldBullionDevelopmentCorp.com and on
SEDAR.com.
"Frank J. Basa"
Frank J. Basa, P.Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. 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.
SOURCE Gold Bullion Development Corp.