Vancouver, Canada — MININGREVIEW.COM — 09 June 2009 – Great Basin Gold Limited (GBG) – an emerging mid-tier gold producer listed on the Toronto and American stock exchanges – has announced that South Africa’s national electricity utility ESKOM has undertaken to supply power to its Burnstone mine project.
Revealing this development in an announcement here, GBG confirmed that it had accepted a R119 million official budget quotation for a new supply of power to the Burnstone mine. This quotation outlined the project for the supply of power to Burnstone, which was planned to be completed in time for the commissioning of the metallurgical process plant currently under construction.
GBG is developing the shallow, long-life Burnstone mine at a cost of R2 billion over the 19 year life of mine for the project.
The ESKOM announcement last year outlining a backlog in keeping up with the national power demand, and its subsequent drastic power conservation scheme, came at the time when the Burnstone project had entered mid–stage construction. ESKOM pledged support to the project after GBG had engaged with the utility on the matter as part of its risk mitigation strategy.
ESKOM committed to Burnstone’s phased power demand requirements, subject to the terms of the budget quotation, which involved the refurbishment of an existing line, and construction of a new section of a power line to Burnstone. This process was being jointly managed by the two companies to coincide with project completion.
GBG President and CEO Ferdi Dippenaar commented: “We are pleased by ESKOM’s support and welcome their positive attitude towards a project that will see the first new gold mine in South Africa in many years. Securing sufficient permanent power supply to the Burnstone Mine has been an ongoing concern to the company and its investors,” he added.