GOLD: Gold Bullion signs custom milling deal for Grenada mine

QUEBEC – Gold Bullion Development Corp. has signed a four-year deal to treat ore from its Grenada gold mine near Rouyn-Noranda at the Aurbel mineral processing plant 15 km east of Val d’Or. The mill is owned by QMX Gold Corp. of Toronto. The agreement covers an initial 70,000 tonnes of stockpiled material that is to be milled this year. After the stockpile has been processed, Gold Bullion has agreed to provide the financing to step up throughput at Aurbel to 1,200 t/d from 650 t/d. The capital expenditures will be offset against future toll charges and repaid over the length of the contract. Beginning in 2017 and for three years, Gold Bullion will send up to 1.4 million tonnes of open pit ore from the Grenada mine to the mill. The arrangement between Gold Bullion and QMX is contingent on Gold Bullion securing permits for mining at Grenada, tailings permits for areas near the mill, and raising the money to expand the mill. The Aurbel mill was closed in September 2015. During maintenance and cleaning, QMX recovered about 2,000 oz of gold. Maintenance work will be completed next month. More information about the Aurbel mill can be found at QMXgold.ca.