Saturday 22nd October 2016

Resource Clips

Gold Bullion President Frank Basa on Quebec assays of 1.21 g/t gold over 98m

Resource Clips - essential news on junior gold mining and junior silver miningGold Bullion Development Corp TSXV:GBB announced results from its Granada Property near Rouyn-Noranda, Quebec. Highlights include 1.21 g/t gold over 98 metres (including 2.34 g/t over 29.5 metres), 0.5 g/t over 183.5 metres (including 1.12 g/t over 45.5 metres), 0.41 g/t over 220.3 metres (including 1.06 g/t over 70.9 metres), 0.4 g/t over 224.5 metres (including 0.85 g/t over 46.8 metres) and 0.47 g/t over 180.9 metres (including 53.11 g/t over 0.5 metres).

President/CEO Frank Basa tells, “We’re just drilling for structure; we’re trying to find out the extent of this mineralized envelope or zone. We still haven’t found its full extent. We’re trying to define it. We originally started with 2,800 metres; then we went to 25,000 metres, then 50,000 metres. I think we’ll just have to keep increasing the drill program until we find the extent of it. We might have a very large low-grade deposit, and I think we’ll lower the grade by design and then follow it up with a higher-grade mine going underground. This was historically a high-grade mine operating in the 1930s and 1930s, about 10 grams a tonne.

There are a lot of mines like this on the Cadillac Trend, and we worked on one when I was with Agnico-Eagle; it became the Don LaRonde—Frank Basa

“We keep on getting these high-grade zones but they’re a metre wide, a metre and a half wide. So we think these two structures called 1 and 2, trending east and west, about 60 degrees from horizontal, and another called number 5, keep on recurring. Usually these things disappear after a while and don’t reappear, but these seem to be in place for about 1.2 kilometres—actually we’re up to 1.5 kilometres on strike length right now. The width is a little over half a kilometre.

“We still haven’t found bottom to the structure,” Basa reports. “We’re down to 450 vertical. There are a lot of mines like this on the Cadillac Trend, and we worked on one when I was with Agnico-Eagle; it became the Don LaRonde. Those were near-surface, low-grade and then became very high-grade mines at depth with base-metal components. We might have the same thing. It’s kind of early to say what we have, but we are checking for copper and nickel. They both showed up in our bulk samples.

“I’ll think we’ll be finishing up our current 50,000-metre program within the next two to three weeks. Originally we didn’t think we’d have this potential for a high-grade mine at depth because usually these veins are shallow; they disappear. But one of the people at GENIVAR [Gold Bullion's geological consultant] is very good at following these structures, and it appears we might have a significantly high-grade mine at depth.”

The project’s initial resource estimate is scheduled for release this fall. “We’re debating which way to go with it,” Basa says. “Early on we did a very large bulk sample, 142,000 tonnes. Historically, they said whatever you drilled, you mined and milled 35% higher. In other words if you drilled one gram, when you mined and milled and poured a bar, you got 1.35 grams out. So we did a very large bulk sample, and it’s actually over 100% higher. It really changes the grade. You’ll see a lot of our grades are quite low. This is done by design. We controlled the grade by the width of the mineralized envelope. In other words, you could have 200 metres running 0.3 or I could bring it down to 70 metres and it’s 1.5 grams. So we thought we’d see what we can do with a lower-grade deposit and look at the economics, knowing that even half a gram when it’s mined and milled might end up being a one-gram deposit.”

He adds, “We re-did the mine’s permits; we just completed a hydrological study and a baseline study. We’re doing all kinds of site clean-up. There was a lot of stuff left from the 1930s, so should somebody wish to take this over it’ll be permitted; there’ll be a resource, and it’ll be clean.

“The project seems to be leaning towards both surface and underground mining. We did a few deep holes down to 450 vertical and we hit these zones. To consider a deep mine, we’ll need special drill rigs to go down 1,000 or 2,000 metres vertical.”

Asked whether Gold Bullion would take the mine into production, Basa replied, “If it’s very large, I don’t see it. If it’s a certain size, we do have the skill set in house to do it right now. We’ve already spoken to three separate groups last November. They came to us; I told them it’s still premature. There’s only about 100,000 metres of drilling in total. If you look at Osisko [which holds the 6.2-million-ounce Canadian Malartic Deposit 65 kilometres from Gold Bullion’s Granada Project] and Detour Lake [Detour’s 11.4-million-ounce reserve, also in the Abitibi Greenstone Belt], they did about 800,000 or 900,000 metres of drilling.

“We’re just exploring basically. We’re just having a very conservative look at what we think might be there.”

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Frank J. Basa

or Roger Thomas

Gold Bullion Development Corp is a Resource Clips advertiser.

by Greg Klein

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