BMR Portfolio

Gold Bullion Development (GBB, TSX-V)

Gold Bullion was up half a penny on the week to 50 cents, trading in a range of 47.5 to 57 cents…the company issued an exploration update last Tuesday which was very bullish in its tone…drilling at Granada is intersecting multiple zones of altered feldspar porphyry (favorable for gold mineralization) in the Phase 1 east-northeast discovery area of the LONG Bars Zone…these structures, in fact, are being intersected in all directions (north, south, east and west) of Phase 1 discovery hole GR-10-17 which is extremely encouraging…about 4,000 metres of drilling (17 holes) has been completed in this promising area which is not part of the 2.4 to 2.6 million ounce estimate of potential resources (non-compliant) contained within the Preliminary Block Model…GENIVAR appears to be drilling twice as deep in the east-northeast area as they were in Phase 1 which is very interesting…given how efficient and effective GENIVAR has proven to be in drilling Granada, they certainly wouldn’t be wasting time and money with these deeper holes if these holes weren’t yielding good visual results…it’s possible the widespread lower grade mineralization at and near the surface is just the “tip of the iceberg” and something even more significant is at depth (for example, 300 vertical metres) which is still amenable to open-pit mining…Osisko’s Canadian Malartic goes down 320 metres…Gold Bullion also reported it has identified a second LONG Bars Zone 1800 metres east of GR-10-17…this area, which has undergone some extensive historical work including trenching and limited diamond drilling, features numerous north-dipping quartz vein or stringer zones and feldspar porphyry sills and dykes along a 1 kilometre shear zone…several northeasterly faults cross the shear zone and are considered prime targets for economic gold concentrations…some high grade showings were reported from historical work including up to 7 ounces per tonne (200+ g/t Au) from the Bert Vein, information BMR obtained from a publicly available 1994 report on the Granada Eastern Extension that was filed with the Quebec Ministry of Mines…LONG Bars Zone 2 has very similar geological characteristics to the original LONG Bars Zone Gold Bullion is currently drilling…a fascinating geological story continues to unfold at Granada…