GENIVAR, the geological consultant for Gold Bullion Development (GBB, TSX-V), was probably looking forward to a pause in Phase 2 drilling after more than 120 consecutive days of it (and nearly 19,000 metres) at the Granada Gold Property. But instead they want to keep charging ahead and immediately go after some “high priority” targets with 5,000 extra metres of drilling before an even larger Phase 3 program begins. Yesterday’s news from Gold Bullion was indeed significant and very revealing as to what’s likely happening on the ground in the LONG Bars Zone.
The Eastern Extension
Hole #86, the southernmost hole drilled so far in the LONG Bars Zone, was first brought to investors’ attention in last Thursday’s news release – emphasized in a separate paragraph but buried toward the end of a long exploration update. It was highlighted in the third paragraph of yesterday’s release. One of GENIVAR’s “immediate priorities” is additional drilling, likely starting by this weekend, around Hole #86 which is 350 metres directly south of Phase 1 discovery hole #17 as well as 180 metres east-southeast of the Preliminary Block Model.
Intense alteration and near-surface mineralization were observed in #86 including visible gold at two different depths – in a brecciated quartz vein and also in porphyry. This has all the makings of a potentially stellar hole and one possibility is that it could be an extension of the high grade Vein #2 located 250 metres to the west-northwest. We did some additional research yesterday on this under-explored southern part of Granada, and we’ll be doing more as we’re discovering some interesting new information.
Hole #86 is in what is called the “South Shear Zone” of Granada which was first mapped in 1992, according to Willoughby’s publicly available report that we obtained from the Quebec Ministry of Mines. Some of the higher grade gold mineralization at Granada appears to be controlled by northeasterly faulting, a feature that also extends through the South Shear (one of several shear systems at Granada).
Willoughby himself took some grab samples in 1992 – one of those samples, approximately 100 to 150 metres west-southwest of Gold Bullion’s Hole #86 (as best we can determine) assayed 10.80 g/t Au (0.381 oz.) from a vein hosted by biotitized conglomerate. “Drilling from the No. 2 Gold Zone on the Granada Mine Property intersected the South Shear and extensive biotite alteration was encountered,” stated Willoughby (page 99). “Perhaps this shear is the western extension of the Auk Shear.”
The Auk Shear Zone encompasses the highly prospective LONG Bars Zone 2 area (the former Aukeko Property) that Gold Bullion hopes to start drilling later this year.
If Willoughby is correct, Gold Bullion may have found something of extreme significance with Hole #86 which could explain GENIVAR’s eagerness to immediately drill some more holes in this area. The evidence – visuals on Hole #86 as well as historical data – is strongly suggesting that the LONG Bars Zone potential going south is greater than originally thought. From south of the Preliminary Block Model, mineralization appears to extend well to the east. So two things appears to be happening here – a possible extension to the Preliminary Block Model immediately to the south, and an even wider Eastern Extension.
Below is a map from Willoughby’s 1994 report showing all of the area that’s being drilled in Phase 2 plus some more of Granada (we have highlighted in a yellow box the approximate location of Hole #86). Immediately below #86 is an east-west trending shear and alteration zone that leads out to LONG Bars Zone 2 which is not shown here (note the northeasterly faults as well as the “Domal Feature” that Willoughby has outlined):
Three Major Areas of Interest Now in the Eastern Extension
The south becomes at least the third major area of interest in the Eastern Extension based on Gold Bullion’s last two news releases. The area east and southeast of Hole #17 is extremely promising, of course, and so too is the northwestern portion of the Eastern Extension. To sum it up, Gold Bullion has reported strong and very encouraging visual showings in the far north, the far east and now the far south of the Eastern Extension which is completely outside the potential 2.4 to 2.6 million ounces (non-compliant) in the Preliminary Block Model. The total drilled Extension surface area is 450 metres north-south and 500 metres east-west. Assays mean everything, but the strong and encouraging visual reports suggest Gold Bullion has an excellent chance of producing some impressive (in a few cases perhaps even spectacular) breakthrough numbers from the Eastern Extension. We all wait with great anticipation.
Preliminary Block Model
GENIVAR is keying in at the moment on the northern half of the Preliminary Block Model which, apart from Pit #1 West, has received little historical attention. One of the major reasons for that is the huge amount of “waste” rock that was literally piled on top of a 34,000 square metre area, preventing any drilling from taking place. It appears all of this rock was dumped right on top of an orebody.
GENIVAR is drilling in sections from south to north and finding mineralization everywhere. They are building up and building out the Preliminary Block Model which already contains a potential 2.4 to 2.6 million ounces as outlined by Gold Bullion last April. A good example of GENIVAR’s success in drilling is the approximate 250 metre section (south to north) that includes holes #12, #53, #33, #47, #117, #102 and #118 (118 is actually just outside the northern boundary of the Preliminary Block Model in the Eastern Extension). Assays on four of those holes have been reported (#12, #33, #47 and #53) and all four were very good. Hole #117 featured strong alteration and hit gold immediately below the overburden. It is being rushed for assaying according to yesterday’s news.
We’d like to see some RC drilling take place within the Block Model for a better test of grade compared to the current NQ (smaller diameter) drilling, and we’d also like to see at least a couple of really deep holes drilled (500 to 1,000 metres vertical) – the Cadillac Trend is such that you never know what you may hit at depths such as that. Another bulk sample, this time over the northern half of the Preliminary Block Model, may also be helpful. But all of that takes time and Rome wasn’t built in a day. Neither was Osisko’s Canadian Malartic Deposit 65 kilometres to the east.
Not everyone fully appreciates this yet but a great geological story is indeed unfolding in the LONG Bars Zone. The new discovery of near-surface mineralization in the southernmost area drilled so far in the LONG Bars Zone is yet another indication of the amazing blue sky potential of this former producer that was hugely overlooked for so many years.