New Dynamic At Granada As LONG Bars Zone Widens

We all know the enormous potential of Gold Bullion Development’s (GBB, TSX-V) LONG Bars Zone going east – several kilometres of highly prospective strike length that includes LONG Bars Zone 2 (the old Aukeko Property) a couple of kilometres to the east of Gold Bullion’s Phase 1 Discovery Hole #17. If the two zones connect, GBB will have something absolutely enormous on its hands.

But now what is rapidly developing is a multi-directional dynamic at Granada following the latest round of assay results released Friday by the company that confirmed the discovery of significant mineralization in the far north and the far south of the Eastern Extension.

Yes, the LONG Bars Zone could end up being very, very long indeed. But it’s also becoming a lot wider, pushing out to the north in particular and even the south. This is a major bonus for Gold Bullion – President and CEO Frank Basa and his geological team at GENIVAR couldn’t be happier at the prospect of a potential doubling or better of the width of this major structure. It doesn’t take a rocket scientist to figure out the math in terms of the possible impact on potential ounces.

Here’s what’s happening and how we see it developing.

In the far northern section of the Eastern Extension, about 150 metres outside the northeast border of the Preliminary Block Model, Hole #108 returned an interval of 142 metres of 0.70 g/t Au as reported Friday by Gold Bullion. This hole was collared 30 metres north of Hole #55 which intersected nearly 100 metres grading 1.85 g/t Au within a wider interval of 360 metres of 0.60 g/t Au. Assays for 11 Phase 2 holes drilled around this area are pending (many had strong visuals as reported by GBB over the summer), and at BMR we believe there’s a strong probability that mineralization extends not only more to the north in the Eastern Extension, but also in an east-west fashion which means there could be a lot to be discovered immediately north of the Preliminary Block Model which presently covers an area 300 metres in width and 600 metres in length (2.4 to 2.6 million potential ounces as an exploration target, non 43-101 compliant, as announced by GBB April 22).

The Eastern Extension is already 200 metres wider (north to south) than the Preliminary Block Model. It doesn’t seem reasonable to us that there could be a zone of mineralization to the northeast of the Block Model but nothing to the immediate north. It seems GENIVAR is of the same opinion as the latest GBB drill map on its web site shows that they are following up drill holes inside the northeastern part of the Block Model with holes to the north outside the Block Model. Patterns are developing.

Gold Bullion news releases in September specifically referenced the northern portion of the Block Model, including the waste pile, as an area of high interest given an assay result from Hole #47, visual observations of specific holes, and known geological structures.

What this all means, we believe, is a probable northward expansion of the Preliminary Block Model just like the Eastern Extension is pushing to the north. This has significant tonnage implications for this deposit.

Meanwhile, there are new possibilities to the south after Gold Bullion announced results from Hole #86 Friday. This hole encountered near-surface mineralization in altered feldspar porphyry and brecciated quartz veining (meaning there could be a lot of faulting going on in this particular area). Hole #86 returned an interval of 1.00 g/t Au over 84.6 metres within a total interval of 127.5 metres (4.5 metres to 132 metres) grading 0.76 g/t Au. That’s a very solid result and confirms historical information, along with early data from Adventure Gold (AGE, TSX-V) which has claims in the south, that there are likely extensions to the south of Granada Pits #2 West and #2 East which were mined mostly in the 1930′s and most recently, on a smaller scale, just over a decade ago.

Significant mineralization has been discovered in the Eastern Extension, north to south, nearly 500 metres apart with the results from Hole #108 and Hole #86.

The LONG Bars Zone is very long and likely about to get longer in the months ahead. And it’s also getting wider with a new north-south dynamic which gives fresh credence to Granada developing into a potential multi-million ounce deposit. Gold Bullion is finding massive structure.