HomeGoldGBG narrows its loss

GBG narrows its loss

Burnstone mine
headgear, with full
moon in the
Vancouver, Canada — MININGREVIEW.COM — 12 August 2010 – Great Basin Gold Limited (GBG) – the emerging mid-tier gold producer poised to launch production at its Burnstone mine in South Africa by the end of next month “’ narrowed its first half loss to C$11.9 million (R83.3 million) from C$23.7 million (R165.9 million) previously.

The company results statement issued here added that its loss for the quarter to end June had narrowed to C$5.4 million (R37.8 million) from C$13.6 million (95.2 million) last year. Some 13 786 gold equivalent ounces had been sold during the quarter, generating proceeds of US $16.7 million (R122 million), the company said.

This represented an increase of 126% over the 6 109 gold equivalent ounces sold during the previous quarter.

A further 25 632 gold equivalent ounces had been sold under an ore purchase agreement with Newmont, bringing the total sold for the quarter to 39 418oz.

Net revenue recognised from Newmont amounted to US$23.2 million (R169 million). June net revenue amounted to C$21.9 million (R153.3 million) after deducting toll milling charges of C$6.3 million (R44.1 million) on the sale of 26 517 gold equivalent ounces.

Great Basin said its two flagship operations “’ Burnstone in South Africa and Hollister in the United States “’ were on track.

The company added that commercial production at the Burnstone project was expected to kick-start by the end of next month. Trial mining at Hollister would be focused on increasing ore tons from underground to 30 000 ore tonnes per quarter which will have a favourable impact on production unit costs.