🕐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.
Theres 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 *Osiskos* massive open pit Malartic deposit,
and on the same Cadillac Fault, is *Gold Bullions *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 Granadas 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 *Osiskos *success and very
interesting results from *Yorbeau Resources *(*YRB.A, TSX*) which is *Gold
Bullions* northern neighbor, a much bigger picture has started to emerge
here.
Theres 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
Bullions*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.
Its like the golden highway, its amazing, Basa explained to us in an
exclusive BullMarketRun.com interview New Years Eve.
If youre organized,
if you have a good exploration team, youll hit it and youll develop good
resources.
Thats 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 theyve reported are a
little low.
Once they get into production theyll have more gold.
Its 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.
Thats definitely a good sign
they must like what they see.
Lets 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*. Weve 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 hes 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 *Osiskos* 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 Bullions* landholdings.
*Yorbeaus* market capitalization has rocketed from approximately $13
million to $42 million over the last four months (*Gold Bullions *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 Quebecs
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 Granadas value
per tonne? This story has legs, folks serious legs, and were 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 juniors 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 Bullions* back.
Do you think this stock will be sitting at nine cents much longer? Not a
chance.
A companys 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.
Theres a very decent chance,
in our view and Basas, 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.
Were so excited by whats happening at Granada that we havent even
mentioned *Gold Bullions* high-grade Castle Silver Mine (another former
producer which also contains cobalt) in Gowganda, Ontario.
Basa says well
be hearing more about *Gold Bullions* plans for this project in the near
future.