Mr. Frank Basa reports

SUMMARY OF METALLURGICAL TESTS PERFORMED ON HAND COBBED SAMPLES FROM THE BEAVER SILVER MINE, COBALT CAMP

Gold Bullion Development Corp. has released the results of a high-definition mineralogy study and some scoping-level flotation and gravity separation tests done at SGS Lakefield on samples from its Beaver silver property, located 15 kilometres east of the historic silver camp in Cobalt, Ont.

The company's geological consultant hand cobbed 400 kilograms of cobalt-nickel sulphide material from the historic waste pile at the Beaver silver mine. The 20-kilogram sample used in this test program has an average calculated assay of 7.98 per cent cobalt (Co), 3.98 per cent nickel (Ni) and 1,246 grams per tonne (g/t) silver (Ag). Combined gravity-flotation recoveries from the limited test program yielded 64.2 per cent for Co, 61.2 per cent for Ni and 92 per cent for Ag. No real effort was made to produce a saleable concentrate.

The company is encouraged by these test results and is extending the test program by doing further gravity concentration of the material followed by pressure leaching. The company plans, at this stage, to produce a bulk metal hydroxide cake with the long-term objective of producing a cobalt product for the lithium-ion battery market. The present test program will examine silver and cobalt-nickel sulphides only.

The drill program undertaken at the company's Castle silver mine in 2011 indicated, in addition to high silver assays, the presence of sulphide metals, gold and platinum group metals. A National Instrument 43-101 technical report dated Aug. 15, 2011, for Castle Silver Mines Inc., the company's wholly owned subsidiary, on the Castle silver property is available for viewing on SEDAR.

The company plans to release an update on the work undertaken at the Castle silver mine, located 85 kilometres northwest of the historic silver camp in Cobalt, Ont. The historic silver camp of Cobalt, Ont., which includes Gowganda and Silver Centre, has produced over 660 million ounces of silver since the early 1900s.

High-definition mineralogy study

Three hand specimens from the Beaver silver property, Cobalt, Ont., were submitted by Gilbert Rousseau of SGS Geostat on behalf of Gold Bullion for a high-definition mineralogical examination.

XRD analysis

The sample consists of major amounts of nickeline (NiAs), moderate skutterudite (Co,NiAs3) and rammelsbergite (NiAs2), minor quartz (SiO2), calcite (CaCO3), dolomite (CaMg(CO3)2), safflorite ((Co,Fe)As2), gersdorffite (NiAsS), arsenopyrite (FeAsS), and tentatively identified chlorite, amphibole and analcime.

SEM-EDS analysis

The samples were also investigated with a scanning electron microscope (SEM) equipped with an energy dispersive spectrometer (EDS). The investigation also identified an REE epidote, annabergites, bismuthinite, native bismuth (Bi) and tentatively identified borodaevite.

Mineral chemistry

Electron microprobe analyses were conducted to determine the chemistry of Co-Ni-iron (Fe) sulpharsenides and arsenides. The average elemental values (in weight per cent) are given in the relevant table.

   
   AVERAGE CHEMISTRY OF CO-NI-FE SULFARSENIDES AND ARSENIDES 

Mineral/element            S   Ag    Fe    Co    Ni    As  Total
 
Safflorite/skutterudite 0.52 0.02  5.40 16.36  4.49 73.82 100.62
Nickeline               0.01 0.01  0.05  0.16 45.36 55.50 101.12
Alloclasite            16.11 0.02  2.07 17.92 15.09 49.64 100.86
Arsenopyrite           19.03 0.01 33.51  0.77  0.65 45.58  99.55
Detection limts (%)     0.02 0.04  0.08  0.11  0.13  0.05  

On the basis of the electron microprobe data, presented below, four mineral groups have been identified and include:

• Arsenopyrite (FeAsS);
• Nickeline (NiAs) and rammelsbergite (NiAs2);
• Safflorite ((Co,Fe)As2) and skutterudite (Co,Ni)As3;
• Alloclasite referring to a varied in composition phase (Fe,Co,Ni)3As4S3.

As-received sample

The calculated modal mineralogy from the three amounts shows that the sample consists of nickeline (32.7 per cent), safflorite/skutterudite (28 per cent), alloclasite (13.3 per cent), carbonates (calcite and dolomite) (20.9 per cent), and minor quartz (2.2 per cent) and chlorite (1.2 per cent), while other minerals are in trace amounts.

Size-by-size QEMSCANTM analysis

The sample consists mainly of nickeline (28.3 per cent), alloclasite (26.7 per cent), safflorite/skutterudite (20.3 per cent), arsenopyrite (3.1 per cent), calcite (8 per cent), dolomite (6.6 per cent), chlorite (4.2 per cent), quartz (1.7 per cent), and trace amounts of other sulphides (0.2 per cent), feldspars (0.2 per cent) and other silicates (0.6 per cent).

Occurrence of Ag

Ag grades are between 40 g/t and 80 g/t in the sample. Electron microprobe analyses of the main Fe-Ni-Co sulphoarsenides and arsenides indicate that Ag is below the detection limit. Ag was tentatively identified as borodaevite.

Elemental distribution

The elemental distribution is calculated based on the average chemistry of the Co-Ni-Fe sulpharsenides and arsenides and their mass per cent as calculated by the QEMSCANTM analysis. Most of the Co is accounted by alloclasite (58.6 per cent) and safflorite/skutterudite (40.5 per cent). Most of the Ni is accounted by nickeline (71.5 per cent) and alloclasite (23.1 per cent) and less by safflorite/skutterudite (5 per cent). Most of the arsenic (As) is accounted by nickeline (34.8 per cent), safflorite/skutterudite (33.1 per cent), and alloclasite (28.9 per cent) and minor arsenopyrite (3.1 per cent).

Grain size distribution

The relevant table summarizes the (mid-point in the size distribution) D50 or 50-per-cent passing value from the cumulative grain size distribution of selected minerals.

       THE D50 (IN MICROMETRES) OF 
      SELECTED MINERALS FOR SAMPLE

Mineral                  D50 (in microm.)

Arsenopyrie                           15
Alloclastite                          53
Nickeline                             57
Safflorite/skutterudite               47
Quartz/feldspars                      44
Micas/clays                           26
Carbonates                            36
Particle                              53
 

Several grains make up a particle. A particle usually refers to a fragment of a rock or ore, the size of which is dependent on crushing and milling conditions.

Liberation and association

Nickeline

Free and liberated nickeline account for 84.7 per cent. The main association of nickeline is as middlings with alloclasite (12.3 per cent), and minor middlings with arsenopyrite/alloclasite/safflorite/skutterudite (1.4 per cent) and complex particles (1 per cent). Liberation of nickeline increases moderately from 77 per cent to 84 per cent to 93 per cent from the plus-106- to minus-53-micrometre fractions.

The particle liberation by size indicates that free and liberated particles are equally distributed at below and above the 50-micrometre size class at 37 per cent and 48 per cent, respectively. Middling particles account for 3 per cent and 12 per cent, respectively.

Safflorite/skutterudite

Free and liberated safflorite/skutterudite account for 82.3 per cent. The main association of safflorite/skutterudite is as middlings with arsenopyrite/alloclasite/nickeline (6.2 per cent), alloclasite (5.2 per cent), complex particles (2.5 per cent) and arsenopyrite (2.3 per cent). Liberation of safflorite/skutterudite increases significantly from approximately 73 per cent to 81 per cent to 91 per cent, the plus-106-micrometre to minus-53-micrometre size fractions.

The particle liberation by size indicates that free and liberated particles are equally distributed at below and above the 53-micrometre size class at 44 per cent and 38 per cent, respectively. Middling particles account for 5 per cent and 13 per cent, respectively.

Alloclasite

Free and liberated alloclasite account for 73.8 per cent. The main association of alloclasite is as middlings with nickeline (10.9 per cent), middlings with arsenopyrite/nickeline/safflorite/skutterudite (5.2 per cent), skutterudite (4.5 per cent), complex (3.1 per cent), arsenopyrite (1.6 per cent) and trace associations (less than 1 per cent) with other minerals. Liberation of alloclasite increases significantly from 63 per cent to 75 per cent to 84 per cent, the plus-106-micrometre to minus-53-micrometre fractions.

The particle liberation by size indicates that free and liberated particles account for 35 per cent and 28 per cent at above and below the 53-micrometre size class, respectively. Middling particles account for 7 per cent and 19 per cent, respectively.

Arsenopyrite

Free and liberated arsenopyrite account for 44.5 per cent. The main association of arsenopyrite is with alloclasite (15.6 per cent), alloclasite/nickeline/safflorite/skutterudite (13.9 per cent), safflorite/skutterudite (11.8 per cent) and complex particles (10.7 per cent). Liberation of arsenopyrite increases significantly from 14 per cent to 18 per cent to minus 60 per cent, the plus-106-micrometre to minus-53-micrometre fractions. Middling particles generally decrease with decreasing particle size.

The particle liberation by size indicates that free and liberated particles account for, at below and above the 53-micrometre size class, at 39 per cent and 6 per cent, respectively. Middling particles account for 23 per cent and 32 per cent, respectively.

Mineral release

Mineral release curves for arsenopyrite, alloclasite, nickeline and safflorite-skutterudite are as follows.

Liberation of arsenopyrite ranges from 14 per cent to 18 per cent to 60 per cent for grains sizes of 226 micrometres, 75 micrometres and 13 micrometres, respectively. Liberation of the alloclasite ranges from 63 per cent to 75 per cent to 84 per cent for the same sizes, respectively. Liberation of nickeline ranges from 77 per cent to 84 per cent to 93 per cent for the same sizes, respectively. Liberation of the safflorite-skutterudite ranges from 72 per cent to 81 per cent to 91 per cent for the same sizes, respectively.

Grade and recovery

Grades and recoveries are based on the minerals instead of Co, Ni and As grades due to the complexity of the mineral chemistry. The grade-recovery calculations representing the whole sample indicate:

• Nickeline grades between 98 per cent and 89 per cent for nickeline recoveries of 85 per cent to 98 per cent, respectively;
• Alloclasite grades between 96 per cent and 78 per cent for alloclasite recoveries of 74 per cent to 97 per cent, respectively;
• Safflorite/skutterudite grades between 98 per cent and 86 per cent for safflorite/skutterudite recoveries of 83 per cent to 97 per cent, respectively;
• Arsenopyrite grades between 98 per cent and 62 per cent for arsenopyrite recoveries of 45 per cent to 73 per cent, respectively.

Metallurgical tests

Two very limited flotation and one flotation-gravity tests were done on the cobalt-nickel samples. Average calculated head grades were as shown in the relevant table.

         TEST RESULTS

Test    Co (%) Ni (%) Ag (g/t)

1        7.96      4    1,296
2        7.72   3.81    1,298
3        8.25   4.14    1,144
Average  7.98   3.98    1,246
 

             FLOTATION TEST NO. 1 -- METALLURGICAL BALANCE

Product             Weight           Assays (%, g/t)           Distribution (%)
                  (g)    (%)      Co   Ni        Ag    S    Co    Ni     Ag     S
   
Ro conc. 1     163.6    8.2     9.60 7.81 12,754.00 4.41   9.9  15.7   84.0  26.4
Ro conc. 2      77.9    3.9     8.89 6.01  1,133.00 3.46   4.4   5.7    3.6   9.8
Ro conc. 3      41.8    2.1     8.51 5.16    610.00 2.64   2.2   2.6    1.0   4.0
Ro conc. 4      37.5    1.9     8.15 4.75    452.00 2.44   1.9   2.2    0.7   3.3
Rougher tail 1,676.4   83.9     7.74 3.58    159.00 0.92  81.6  73.7   10.7  56.4
Head (calc.) 1,997.2  100.0     7.96 4.08  1,243.88 1.37 100.0 100.0  100.0 100.0
(direct)        7.74   4.00 1,296.00 1.15    
                                                  Combined products         
Ro conc. 1             8.20     9.60 7.81 12,754.00 4.41   9.9  15.7   84.0  26.4
Ro conc. 1-2          12.10     9.40 7.23  9,007.70 4.10  14.2  21.4   87.6  36.2
Ro conc. 1-3          14.20     9.20 6.92  7,768.35 3.89  16.4  24.1   88.6  40.3
Ro conc. 1-4          16.10     9.10 6.67  6,912.30 3.72  18.4  26.3   89.3  43.6
Rougher tail          83.90     7.74 3.58    159.00 0.92  81.6  73.7   10.7  56.4

                FLOTATION TEST NO. 2 -- METALLURGICAL BALANCE

Product             Weight             Assays (%, g/t)          Distribution (%)
                  (g)    (%)      Co    Ni        Ag    S    Co    Ni     Ag     S

Ro conc. 1     125.6    6.3     9.20  5.59 18,003.00 4.12   7.5   9.2   87.1  20.1
Ro conc. 2      79.6    4.0     8.96  5.75  1,305.00 3.54   4.6   6.0    4.0  11.0
Ro conc. 3      39.2    2.0     7.88  4.85    739.00 2.72   2.0   2.5    1.1   4.1
Ro conc. 4      50.0    2.5     7.77  4.67    750.00 2.62   2.5   3.1    1.4   5.1
Rougher tail 1,706.4   85.3     7.55  3.54     96.60 0.90  83.4  79.2    6.3  59.7
Head (calc.) 2,000.8  100.0     7.72  3.81  1,297.59 1.29 100.0 100.0  100.0 100.0
(direct)        7.74   4.00 1,296.00  1.15        
                                      Combined products
Ro conc. 1             6.30     9.20  5.59 18,003.00 4.12   7.5   9.2   87.1  20.1
Ro conc. 1-2          10.30     9.10  5.65 11,525.30 3.89  12.1  15.2   91.1  31.1
Ro conc. 1-3          12.20     8.90  5.52  9,795.18 3.71  14.1  17.7   92.2  35.2
Ro conc. 1-4          14.70     8.70  5.38  8,257.90 3.52  16.6  20.8   93.7  40.3
Rougher tail          85.30     7.55  3.54     96.60 0.90  83.4  79.2    6.3  59.7
 

   FLOTATION FOLLOWED BY GRAVITY SEPARATION -- METALLURGICAL BALANCE

Product             Weight        Assays (%, g/t)       Distribution (%)
                   (g)   (%)    Co   Ni    Ag    S    Co    Ni    Ag     S
Ro conc. 1-4 
combined       216.10  10.9   9.33 5.86 9,784 4.63  12.3  15.4  93.0  34.5
Rougher tail  1,771.8  89.1   8.12 3.93  89.7 1.07  87.7  84.6   7.0  65.5
Head (calc,)  1,987.9 100.0   8.25 4.14 1,144 1.46 100.0 100.0 100.0 100.0
(direct)                      7.74 4.00 1,296 1.15        

Product               Weight        Assays (%, g/t)     Distribution (%)
                     (g)   (%)  Co   Ni   Ag    S    Co    Ni    Ag     S          
+150 microm. 
Mozley conc.       35.8   7.6 12.6 5.80  152 2.76  14.0  13.1  12.8  20.4
+150 microm. 
Mozley middl.       4.1   0.9 10.4 4.39  157 2.63   1.3   1.1   1.5   2.2
+150 microm. 
Mozley tailings    58.5  12.5 1.07 0.50  182 0.55   1.9   1.9  25.0   6.6
-150/+53 microm. 
Mozley conc.       93.0  19.9 12.1 6.01  121 1.57  35.0  35.4  26.4  30.1
-150/+53 microm. 
Mozley middl.       9.0   1.9 11.3 5.52  137 1.83   3.2   3.1   2.9   3.4
-150/+53 microm. 
Mozley tailings    63.3  13.5 1.03 0.87 39.9 0.24   2.0   3.5   5.9   3.1
-53 microm. Mozley 
conc.              35.6   7.6 12.5 6.09 76.0 1.15  13.8  13.7   6.3   8.5
-53 microm. Mozley 
middl.             15.4   3.3 12.5 5.90 82.9 1.38   6.0   5.8   3.0   4.4
-53 microm. Mozley
tailings          153.4  32.8 4.78 2.30 45.2 0.67  22.8  22.3  16.3  21.2
Head (calc.)      468.1 100.0 6.88 3.37 91.1 1.03 100.0 100.0 100.0 100.0
(direct)                    

                              Cumulative assays and distribution
+150 microm. Mozley
 feed                    21.0 5.65 2.59  170 1.44  17.3  16.1  39.2  29.3
-150/+53 microm.
Mozley feed              35.3 7.82 4.02 90.8 1.07  40.1  42.0  35.2  36.7
-53 microm. Mozley 
feed                     43.7 6.71 3.23 53.4 0.81  42.6  41.8  25.6  34.1
Combined Mozley 
conc.                    35.1 12.3 5.98  118 1.74  62.8  62.3  45.5  59.0
Combined Mozley  
conc. + midds.           41.2 12.2 5.92  117 1.73  73.3  72.3  52.9  69.0
Combined Mozley C 
and -53-microm. 
tailings                 74.0 8.93 4.32 85.1 1.26  96.0  94.7  69.1  90.2
Recovery from
flotation and 
gravity conc. + 
midds. on float 
tailings                 64.2 61.2  3.7 45.2
 

Except for the silver, where an average concentrate grade of 8,418 g/t and 92-per-cent recovery was obtained, from the very limited metallurgical tests done, it seems it may not be possible to obtain reasonable concentrate grades along with decent recoveries for the cobalt and the nickel by conventional milling processes. Gold Bullion intends to utilize pressure leaching to produce a cobalt-nickel metal hydroxide cake.

Gilbert Rousseau, PEng, is acting as the qualified person for Gold Bullion Development in compliance with NI 43-101 and has reviewed the technical contents of this press release.

We seek Safe Harbor.