GOLD: Gold Bullion study positive for Granada mine

QUEBEC – The pre-feasibility study looks good for a rolling start to production at the Granada gold project owned by Gold Bullion Development Corp. of Montreal. The rolling start is based on 569,000 tonnes of ore grading 4.24 g/t from open pits (exclusive of underground resources). About 73,600 oz of gold will be produced at a cash cost of US$796/oz.

The rolling start strategy is expected to have a payback period of under seven months after a pre-production expenditure of C$6.7 million. Gold production is expected to be 25,669, 27,556 and 20.361 oz/y for the first three years.

The Granada gold project has a pre-tax international rate of return of 169% and a pre-tax net present value (6% discount) of C$24.64 million.

Gold Bullion also gave resource numbers for an underground mine at Granada. There are 1.98 million measured and indicated tonnes grading 5.10 g/t Au and 112,000 inferred tonnes at 7.14 g/t. These categories contain 325,450 oz and 25,700 oz of gold respectively.

The Granada pre-feasibility study will be posted at GoldBullionDevelopmentCorp.com within 45 days and on SEDAR.