PRELIMINARY BLOCK MODEL
Gold Bullion Development’s Preliminary Block Model for the Granada Gold Property LONG Bars Zone was released on April 22, 2010, and outlines a gold mineralized system at Granada (not including the Eastern Extension) that offers a potential non-compliant 2.4 to 2.6 million ounces. This figure represents a defined area with a strike length of 600 metres, a width of 500 metres at an angle of 50 degrees from horizontal, and an average true thickness of 70 metres.
The potential 2.4 to 2.6 million ounces is derived from an average of 55 million tonnes (using a 40 to 100 metre true thickness gives 30 to 80 million tonnes respectively) of potential gold mineralization at a specific gravity of 2.65 tonnes per cubic metre grading 1.38 g/t Au to 1.46 g/t Au (a 15% dilution factor was applied to the bulk sample grade of 1.62 g/t Au and a weighted bulk sample/waste pile grade of 1.72 g/t Au).
The potential dimensions, quantities and grades cited above are conceptual in nature and there has been insufficient work to date to define a National Instrument 43-101 compliant mineral resource on the property. The above-quoted figures are reported as an exploration target, based on reasonable assumptions made from compiled data. The figures should not be construed to reflect a calculated resource (inferred, indicated or measured) under standards of National Instrument 43-101.
The Preliminary Block Model is based on:
- Historical data consisting of approximately 26,000 metres of drilling in 471 near-surface holes
- Developed underground workings
- Gold Bullion’s 30,000 tonne 2007 bulk sample
- Some Phase 1 drilling results
“Our strategic and systematic exploration approach with Granada is proving successful,” stated Gold Bullion President/CEO Frank Basa. “We did a very large bulk sample prior to any of our own drilling to quantify grade and gain other valuable geological information. In a deposit of this nature the mill grade often significantly exceeds the assay grades, due in part to the presence of particulate gold which has a low statistical probability of being intersected in the very small area sampled by NQ drilling. We then did a small 2,800 metre shallow drill program in December 2010 and January 2011 to test for structure and confirm the dimensional validity of the Preliminary Block Model. Since May we’ve been conducting infill drilling and additional exploratory drilling and we’re seeing excellent results. We’re very excited about the prospects for the Preliminary Block Model.”
Download Significant Drill Hole Intervals data (48kb xls)