🕐04.01.10 - 18:26 Uhr

Gold Bullion Development Corp. GBB-V - 3rd Party Coverage



January 4, 2010 Special Alert: Discovery Potential, Momentum Makes Gold Bullion Development Priority Pick *Gold Bullion Development Corporation: Discovery In The Making At Granada * At BullMarketRun.com, we are constantly searching for ground floor opportunities in the junior resource sector that offer major upside potential � that 10-cent or less �diamond-in-the-rough� stock that could take the market by surprise and explode 10-fold or better, creating fortunes for those who saw the opportunity, took a calculated risk and jumped in. There�s no better feeling than getting in early on a play that eventually makes it on BNN as the newest darling of Bay Street. Every company that we have introduced here so far at BullMarketRun.com has increased in share value, the best performer being *Seafield Resources* (*SFF, TSX-V*) which has rocketed over 200% since we first initiated coverage at just six cents.

It pays, therefore, to take our recommendations seriously. So you want to read this report very, very carefully because we have reason to believe, based on current drilling and a host of other factors, that *Gold Bullion Development Corporation* (*GBB, TSX-V*) is potentially on the verge of a major exploration breakthrough at its Granada Gold Property five kilometers south of Rouyn-Noranda in the heart of the Abitibi Greenstone Belt.

Could *Gold Bullion* develop into the next *Osisko* (*OSK, TSX*) in Quebec? The geological possibilities certainly exist for that to occur � only time and continued drilling will tell.

Anything is possible.

Just five years ago *Osisko *was a fledgling mining company with its stock trading at less than 30 cents.

Today it has the 10+ million ounce Canadian Malartic deposit and commands a market capitalization of $3 billion at $8.50 per share. Just 40 miles to the west of *Osisko�s* massive open pit Malartic deposit, and on the same �Cadillac Fault�, is *Gold Bullion�s *Granada Gold Property in northwestern Quebec.

*Gold Bullion* acquired the former producing Granada Mine in 2006 with the goal of re-starting production on a relatively small scale (in 1994, A.C.A.

Howe Limited gave a non-compliant estimate of nearly 300,000 ounces of gold in all categories at Granada � 2.38 million tonnes grading 4.08 g/t).

The company conducted a successful large bulk sample (better-than-expected grades, excellent recoveries, no complexities in the ore and low costs as an open pit operation) and reviewed all the historical data and mining options with Genivar, its geological consultant (the Granada Mine has a 471 hole historical database from about 26,000 metres of drilling).

The original 77 hectare land package was also gradually increased and now covers 2,300 hectares.

All this took place between mid-2006 and the fall of 2009, though Granada�s development was slowed down as a result of the 2008 market meltdown and financial crisis. But as *Gold Bullion* strengthened itself financially recently and finally started drilling at Granada, and given *Osisko�s *success and very interesting results from *Yorbeau Resources *(*YRB.A, TSX*) which is *Gold Bullion�s* northern neighbor, a much bigger picture has started to emerge here.

There�s an old saying: The best place to find a new mine is next to an old mine.

The old Granada Mine represents only about 5% of *Gold Bullion�s*present landholdings (2 km wide, 7 km long) which are situated along a prolific gold belt.

Company President and CEO Frank Basa is feverishly trying to add to that land package and for good reason. �It�s like the golden highway, it�s amazing,� Basa explained to us in an exclusive BullMarketRun.com interview New Year�s Eve.

�If you�re organized, if you have a good exploration team, you�ll hit it and you�ll develop good resources.

That�s what *Osisko* did.

They took an expired, exhausted mine and took a fresh approach to it.

We know that deposit very well.

People at * Osisko* did a phenomenal job tying up a �worthless� property with huge environmental liabilities.

I feel even the ounces they�ve reported are a little low.

Once they get into production they�ll have more gold.

It�s the nature of the Cadillac trend.� We sense that Basa, who is regarded as an exceptional geologist, is very focused on trying to pull off another �*Osisko*� at Granada.

He has the fire in his belly and the money in the bank now to start making things happen in a big way for *Gold Bullion* shareholders.

The company just finished raising nearly $1.5 million, allowing for a major drill program which started in December and is now set to resume.

Now is when it gets really interesting, when investors should begin to get a clearer picture of the serious blue sky potential that Granada enticingly offers. *Gold Bullion* announced in a news release last week (Dec.

29) that it has completed 11 holes (1,026 metres) over a strike length of 550 metres at Granada.

What we find very encouraging is that rather than waiting for the assays from these 11 holes, they are immediately extending the drill program another 2,000 metres commencing this week.

That�s definitely a good sign � they must like what they see.

Let�s find that gold and build tonnage as rapidly as possible. In the same news release, however, a single sentence in the final paragraph was very intriguing and raised our eyebrows: �*The company will also be assaying for silver, copper and nickel in specific holes*.� We�ve been following the mining industry for many years.

Make no mistake, in our view that was a significant and revealing statement offered by *Gold Bullion*that suggests to us that they may have encountered some unexpected and very interesting mineralization in one or more of the first 11 holes.

To the best of our knowledge, nickel has never been recovered in that area.

So why would a company go to the expense of assaying for nickel unless they had reason to believe they hit some nickel-bearing mineralization? *Gold Bullion* has never made mention before of nickel or even copper or silver with regard to Granada.

Basa is remaining tight-lipped, but we got the sense he�s clearly optimistic about the 11 shallow holes and is looking forward to assay results and this extended round of drilling with great anticipation. Basa is contemplating an even more aggressive drill program in the spring, based on results, as well as another significant bulk sample.

Some small scale gold production from the Granada Mine could help offset exploration costs in the year ahead (a major advantage for *Gold Bullion* shareholders) which no doubt will be significant as the company extensively drills its growing land package to determine if a few hundred thousand ounces (non-compliant, Genivar will be producing a 43-101) at the Granada Mine is just the tip of the iceberg. The Granada Property clearly exhibits some of the same geological characteristics as *Osisko�s* Malartic deposit, but one only has to look just a little north of Granada at *Yorbeau Resources*� Rouyn Property to get a good picture of how things could quickly develop with *Gold Bullion*.

* Yorbeau* is making increasingly significant discoveries at Rouyn which is only one kilometer from the northern edge of *Gold Bullion�s* landholdings. *Yorbeau�s* market capitalization has rocketed from approximately $13 million to $42 million over the last four months (*Gold Bullion�s *current market cap is only $7.2 million).

*Yorbeau* is even hitting some high grade � on September 23 they reported a 10.35 metre intersection grading 74.67 g/t of gold at their Cinderella zone.

�*Yorbeau* is on the same structure as us,� says Basa.

�They did a bulk sample and got the same mineralization.� Like *Gold Bullion*, *Yorbeau* will be drilling extensively in the weeks and months ahead so this entire area could become a major focus of investor attention. *Gold Bullion* closed Thursday, December 31, at just nine cents.

My hands itch in anticipation of where this stock could be headed in the days, weeks and months ahead as a significant discovery, in our view, appears possible and even imminent at *Granada*.

*Yorbeau* was in the same position as *Gold Bullion* � more than 90% of their landholdings were unexplored, and when they ramped up exploration they started making some significant discoveries. The geology is in our favor and this has all the makings of something big � very big.

The risk-reward ratio is so incredibly attractive with *Gold Bullion* right now, just as it was with *Seafield Resources* when we pounced all over it at six cents.

Do we sound excited? You bet we are.

Given a surging CDNX and a gold price that is expected to hit a new record high in 2010, a nine-cent junior ($7.2 million market cap) with proven gold reserves and 2,000+ hectares of highly prospective ground to explore along Quebec�s famous �Cadillac Fault� is a no-brainer �BUY� with big upside potential.

On top of all that, in the search for gold that Gold Bullion believes exists surrounding the Granada Mine, have they possibly encountered silver or base metal mineralization that would have the potential to add to Granada�s value per tonne? This story has legs, folks � serious legs, and we�re going to follow it every step of the way. *Gold Bullion* is our #1 pick for an immediate upside move to begin 2010. All the factors we look for that can drive a speculative junior�s stock price are present right now with this company: 1.

Financings are closed and approved and the company is cashed up; 2.

Major exploration and drilling campaign has started and has been expanded; 3.

Growing anticipation of initial assay results; 4.

Neighbor (*Yorbeau*) is enjoying exploration success and drilling simultaneously; 5.

Excellent blue sky geological potential and on trend with 10+ million ounce Malartic deposit; 6.

Friendly mining district and all necessary infrastructure; 7.

IR has been hired which will bring more focus and many more eyes to this play; 8.

Stock technical strength � *GBB* has as bullish a chart as you could ask for with all the moving averages in alignment, neutral stochastics (not overbought), and recent huge volume suggesting massive accumulation; 9.

Company President/CEO is heavily invested himself; 10.

Strong overall market, so the wind is at *Gold Bullion�s* back. Do you think this stock will be sitting at nine cents much longer? Not a chance.

A company�s chart speaks volumes � *Gold Bullion Development Corporation* is on a serious bull market run that likely has a long way to go yet, driven by intense exploration of a very promising property that already has proven gold ounces in the ground.

There�s a very decent chance, in our view and Basa�s, that somewhere along that two kilometer by seven kilometer stretch of �Golden Highway�, *Gold Bullion* is sitting on a motherlode of a deposit � the task now is to find it.

We love the risk-reward ratio here and the �feel� of this whole situation.

We believe we have found our �diamond in the rough�.

Investors at current levels should be very handsomely rewarded. p.s. We�re so excited by what�s happening at Granada that we haven�t even mentioned *Gold Bullion�s* high-grade Castle Silver Mine (another former producer which also contains cobalt) in Gowganda, Ontario.

Basa says we�ll be hearing more about *Gold Bullion�s* plans for this project in the near future.



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