Gold Bullion commences deep hole drilling programme in Granada gold property

5 December 2016 (Last Updated December 5th, 2016 18:30)

Gold Bullion Development has begun an 8,000m deep hole diamond drilling programme that targets a substantial expansion of mineral resources in the northern part of the Granada gold property.

Gold Bullion Development has begun an 8,000m deep-hole diamond drilling programme that targets a substantial expansion of mineral resources in the northern part of the Granada gold property.

In this programme, the first two holes drilled will be located in the north of the existing pits and evaluate the Granada vein system. The holes will be drilled to nearly 850m of vertical depth.

The two drill holes are situated 275m east of DUP12-03AW2, 200m south of DUP-12-02 and 215m north of GR-11-241.

Other holes have been scheduled to similarly fill the gap in resource knowledge at depth in other areas to the north of the existing pits, with a minimum of two holes per set-up. The drilling is expected to be completed within three months.

From 2009 to 2012, Gold Bullion accomplished extensive drilling in the region. Thereafter, the company conducted a preliminary feasibility study at the Granada gold project.

"The company claimed that about 80% of the identified 5.5km strike length remains unexplored."

It resumed exploration drilling activity in September and was completed in one month. Gold Bullion now intends to continue drilling in the next two years and double the size of the deposit.

The company claimed that about 80% of the identified 5.5km strike length remains unexplored.

According to the 2012 resource estimate for the Granada property and on the basis of 90,000m of drilling conducted, the estimated resource is 1.6 million ounces of gold (4.7 million tonnes grading 1.05 g/t Au), and inferred resource is 1.3 million ounces of gold (2.9 million tonnes grading 1.07 g/t Au) using a cut-off grade of 0.40 g/t.

The new programme concentrates on the areas that were not included in the 2012 estimation. Hence, if successful, the drilling will increase the numbers of the previous report.

Gold Bullion has procured all necessary permits from respective authorities to begin mining at the location. It has also commenced stripping and site preparation.

It has planned to continue engineering and feasibility work to assist its longer-term goal of ownning a processing mill and producing 100,000 ounces annually at Granada.