Monday 24th October 2016

Resource Clips

Gold Bullion President Frank Basa on Quebec gold assays of 0.52 g/t over 276 m

“The property itself is an old former producing mine—there are two shafts where we are working right now. Originally we started with 71 hectares, we’re up to 11,000 hectares now and we’re still looking to add to that. It appears that multiple vein structured trending runs east west—there might be nine to 22 structures running east west. We really don’t know how wide these things are or how long or deep. That’s what we’re trying to quantify right now. The mineralization might run for quite a few kilometres trending east west.

“The unfortunate thing about this press release is that it wasn’t well delivered on our part. There’s a lot of information in it—and it is probably too technical in nature—and a lot of people didn’t interpret it accordingly. But the reality is that it is the best press release we’ve had to date. When you really look at it, what we did was quadruple our mineralization zone and we increased the potential of the zone of mineralization undergound by a factor of eight. We took the grade down to about a half a gram—we did this by design, to see if we could increase the mineralization zone. In other words, if you set the criteria for the deposit to a half gram deposit with a 0.2 g/t cut-off, 90% of the holes are within that criteria. And the average thickness of the mineralized zone is about 140 metres. So basically we’ve increased it by an order of magnitude from our original preliminary model. We lowered the grade, but by lowering the grade we also increased our ounces. The one thing that people should have noticed is that the grades tend to be controlled by the way that we mine it. In other words, if we feel that half a gram is not economical we decrease our mining width back to 70 metres, and the grade will be back to one gram. So it’s possible that we can do that.

“All [the press release] is saying is that we increased our land package. What we really did is we went from our original 300 by 600-metre preliminary block model to approximately 1.2 kilometres by 500 metres wide. And we still haven’t found the extent of it! We’ve increased everything with this press release and it should have been received in a positive way.

“In 2011 we’re going to keep on drilling. We’re going to step-out two kilometres from where we are now. We’re going to look at another target. We’ll try to finish off this 50,000-metre program; I think we’ll extend it, because we still haven’t found the extension of our structures. We’ll probably produce, mid-year, a preliminary 43-101. We originally looked at the one gram deposit, then we found that people were actually making money at a half a gram, and we thought we could lower the grade to half a gram to see what kind of ounces we’d get. By lowering the grade we actually increase the amount of ounces we can mine. We’re still looking at various things, but basically we’ll carry on drilling for structure and we’ll see how big this structure is.

“Given the size of this thing there are only about three mining companies in the world that could put it in production and, realistically, we’re not one of them.”

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