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Gold Bullion Development Corp

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Testing new high's, good volume. Could crack 80c soon?

 

Wonder if this is the reason from F.B's interview

 

Basa mentioned that the nugget effect is substantial when looking at Granada and the Cadillac Trend deposits in general. At Granada the nugget effect could be up to 30-40 percent. What this means is that all the drill results could be 30-40 percent higher than the lab results, an early Christmas gift to us all.

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Just some notes. Don't read too much into this ... We'll see what happens

 

My price target for end of 2011 is $2, which could be conservative. Still plenty of upside imo given the way the story is shaping up and amount of drilling that will be done over the next 12 months.

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Yes, badly written press release has sent the market the wrong way.

 

Why don't mining companies hire writers to write their press releases?

 

They dress smart, they go to conferences, they get flashy websites and videos and god knows what else, spend fortunes on PR, and the most important thing of all, the press release, they write themselves. Most miners became miners because they were so rubbish at English at school and they go and write the press releases. FFS. Hire a writer.

 

Imagine if a press release was written by a proper copywriter in a language someone could understand ...

 

Meanwhile spool up a few posts and look at Osisko in Sept 06 - notice that temporary sell-off. The uncanny resemblance continues.

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Yes, badly written press release has sent the market the wrong way.

 

Why don't mining companies hire writers to write their press releases?

 

They dress smart, they go to conferences, they get flashy websites and videos and god knows what else, spend fortunes on PR, and the most important thing of all, the press release, they write themselves. Most miners became miners because they were so rubbish at English at school and they go and write the press releases. FFS. Hire a writer.

 

Imagine if a press release was written by a proper copywriter in a language someone could understand ...

 

Meanwhile spool up a few posts and look at Osisko in Sept 06 - notice that temporary sell-off. The uncanny resemblance continues.

 

 

They should hire Investors to write the press releases. After all, only an investor truly knows what another investor wants to hear! B)

 

 

P.s - I've replied to your comments on my blog.

 

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I tend to agree that the news release could have been worded better. However, shallow holes with long intervals of mineable grade and some high grade areas are becoming more evident. Basically, GBB is finding more gold. It seems to me that a lot of investors have not realised GBB are drilling for structure and not grade. Yes it's low grade but recovery rates are high, so should be economic. Imo this is another Brett Resources, which got bought out by Osisko for $350m. GBB's current market cap is $80m. I think patience will be rewarded and it's still a long term hold. We should have a 43-101 compliant resource out later in the year so will be interesting to see how many oz's we are looking at. I have heard 3m-5m oz being banded around - does anyone have any views?

 

At current levels this looks like a good opportunity for topping up, for those with spare cash. My one criticism is that management coommunication could be better.

 

Am I missing something?

 

 

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can something be salvaged from all of this?

 

FB&B comes to the rescue

 

http://commoditywatch.podbean.com/2011/02/...-drill-results/

 

Great stuff Dominic. It's great that you have given Frank a platform on which he can respond to the market reaction so quickly.

Huge technical damage done to the stock price so might take some time yet to recover...

 

What with AQ and SCM and now GBB it's been quite a week! That's why I like holding a decent position in GDXJ.

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Great stuff Dominic. It's great that you have given Frank a platform on which he can respond to the market reaction so quickly.

Huge technical damage done to the stock price so might take some time yet to recover...

 

What with AQ and SCM and now GBB it's been quite a week! That's why I like holding a decent position in GDXJ.

 

 

Thanks Dominic - great interview. Just reiterates my view and the market seems to have totally over-reacted (even given the confusing nature of the news release). I have always seen GBB as a 1-2 year story and not a quick speculation/punt. It would be great if they can get a NI 43-101 compliant resource out by end of the summer.

 

There is a very interesting post on stockhouse comparing GBB and Brett resources....and we all know what happened to Brett. Here's the link

 

http://www.stockhouse.com/Bullboards/Messa...=GBB&t=LIST

 

I'm very tempted to buy more at this price although have a fair exposure to the stock already.

 

I look forward to the next interview with Frank. I just hope he takes up your idea to get someone to professionally write future news releases

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Interesting interview. However even though I'm by no means an expert I thought during yor previous interview with Frank he talked about a strategy of high grade low depth. Yet now he does seem to have changed tack talking about an expansion but at low grades with comments like seeing if they can make 0.5g grades work. I'm not necessarily that surprised that probably a biggish player hasn't liked what they've heard. Then again I may be misinterpreting.

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Saw this recommendation posted on stockhouse.com. Very encouraging imo as Casey are a big hitter and carry a decent reputation. Now we just need the share price to pick up! Casey also recommended Medusa Mining which is my largest holding

 

Feb. 25/11--Casey's Investment Alert says *Buy* GBB now...

posted on Feb 28, 11 11:49AM Use the IP Check tool [?]

Gold Bullion Development Corp. (V.GBB, C

.52, 158.5M SO, 188.1M FD, C$82.4M MCap, C$6M Cash)

BUY (First Tranche, on Spec)—The CEO here is Frank Basa, whom I was unable to meet, so I can’t fully vouch for him. The person leading the charge on the ground, however, is an experienced Quebec geologists named Nicole Rioux, whom I did meet. The good news is that she impressed me as being very solid (and Philippe Cloutier vouched for her technical savvy).

The not-necessarily-bad-but-not-great news is that Nicole is a contractor, not an employee, as is all the ground crew. GBB has hired a large consulting company called Genivar to do its exploration work on site. Nicole is, in fact, the 43-101 Qualified Person who will sign off on GBB’s resource estimate, later this year – since she doesn’t work for GBB and is not allowed to own stock, she’s regarded as independent.

What I don’t like about this is that the people doing the work have no skin in the game. They seem to be good people – and there was palpable excitement among the geos on site – but I like it better when the key people are highly motivated to see the share price respond positively to added value.

While I’m pointing out flaws, I have to point out that the share structure is not ideal, and while the company has cash, it doesn’t have a lot of cash, not for drilling off a big discovery. All of the company’s warrants are deeply in the money, and that could bring in another couple million, but if GBB doesn’t get taken over, it will probably have to finance at some point this year. With an important resource estimate on the way, however, I’d bet they plan to do that later, and hope to do it at a much higher share price.

So, what makes this pick worth a try, in spite of these potential drawbacks? The company’s flagship Granada project is showing serious size potential and is in the same geological setting and rock types as Osisko’s Canadian Malartic monster gold project. But there’s more than arm-waving here; GBB has published a non-43-101-compliant “preliminary block model” that makes a “conceptual” case for 2.4 to 2.6 million ounces of gold grading about 1.4 g/t – significantly higher than Canadian Malartic. Now, this is not an official resource calculation, not even an Inferred one, but it does suggest the potential for serious size. Key point: drilling since this preliminary block model was estimated has doubled the strike of the mineralization.

If all we had to go on were this conceptual estimate, I’d guess that the official 43-101-compliant resource estimate due out this summer would probably end up being smaller. The mineralization is concentrated in a number of parallel structures, and I’m not sure how much of it would fall within one pit, or how internal waste between the zones might push the average grade down. But with the drilling already having doubled the strike length – and with AGE having found gold at surface on strike in both directions (remember AGE, mentioned above?), the odds look exceptionally good that GBB will be able to report a respectable new multi-million-ounce deposit to the market in a few months.

If this happens, GBB shares could easily double or triple on the news. AGE shares should get a boost as well, especially if their drilling on either side of GBB is successful – and if AGE does have drill success, that will have big implications for GBB. But there’s more than this synergy; if “another Canadian Malartic” looks to be shaping up in the Quebec Abitibi, market interest in all area plays should skyrocket. This could become the next hottest area play, sending shares in all companies working in the area north. It should also spark a major staking rush, enabling those companies already there to form new JV on very advantageous terms.

It also seems that a large player or two exited the stock on February 15. I’ve looked and do not believe the company’s results merited the sell-off. That’s created a buying opportunity.

All of that having been said, I have to stress again that this is not a perfect pick. That adds risk, so do not chase it. I’d take a first tranche now, and then see if greater market volatility gives us better prices for bigger blocks ahead – there are drill results pending now, but there’s also plenty of time before that 43-101-compliant resource estimate comes out.

Louis James

Senior Analyst & Editor

Casey’s Investment Alert

 

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And the rest.

 

I for one am delighted this has pulled back. The pullback has flushed out the idiots.

Don't think you will lose that for long, also saw the Thunder Road report. GBB seems to be attracting a lot of press despite the slide. You definately need to get a P.R commission!

 

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Don't think you will lose that for long, also saw the Thunder Road report. GBB seems to be attracting a lot of press despite the slide. You definately need to get a P.R commission!

 

 

Jay Taylor (miningstocks.com) has also recently tipped GBB. His latest interview with Frank Basa is here

 

http://www.voiceamerica.com/episode/52265/...r-crashes/54806

 

 

 

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