Vancouver, Canada — MININGREVIEW.COM — 14 May 2008 – Great Basin Gold Limited (GBG) – an emerging mid-tier gold producer listed on the Toronto and American stock exchanges – is making good progress with its Burnstone project, located near the town of Balfour 80 km south-east of Johannesburg, and bulk sampling is scheduled to begin in Q3 of 2008.
In a media release issued last night, the company said that as at 10 May 2008, some 1 673 m of the 2 314 m planned length of the underground decline had been completed. Current permitting allows for the completion of a bulk sample, the gold-bearing Kimberley Reef at Burnstone, will be intercepted at 2 146 m.
GBG announced earlier that the South African Department of Minerals and Energy (DME) had approved an amended environmental management plan for the sinking of a 501 m vertical shaft, as a second outlet at the project. Shaft sinking has progressed to some 21 m below surface, and on the granting of the mining licence, the shaft will be used for commercial production as well.
At the last mineral resource update in February, total contained gold in the measured and indicated resources had increased by 41% to approximately 11 million ounces. At the cut-off grade of 4 g/t over 1 m, 3.2 million ounces of gold had been added to the total measured and indicated resources (an increase of 41%), and approximately 2.0 million ounces had been added to the inferred resources (an increase of 486%). Additional drilling is currently underway within and southwest of Area 1, in what is referred to as Area 4, to expand the known resources and identify new areas of interest.
GBG president and CEO Ferdi Dippenaar commented: “At Burnstone, the first reef intersection is expected in the third quarter of 2008 at which time bulk sampling will commence. This is a very atypical South African operation in terms of depth, as mining is planned to take place from some 300 m below surface. The shallow depth of this ore body will allow for a more flexible mining method focused on safety and optimal extraction. A feasibility study investigating a higher level of mechanisation underground is currently underway with the results expected by the end of the current quarter,” he added.
“We have a strong balance sheet with approximately US$51 million R380 million) available in cash and another US$57 million (R430 million) available in project funding, which carries no hedging conditions,” Dippenaar concluded.