HomeGoldGBG signs ore purchase agreement with Newmont

GBG signs ore purchase agreement with Newmont

Aerial view of the
portal at GBG’s
Hollister project
in Nevada
Vancouver, Canada — MININGREVIEW.COM — 28 November 2008 – Great Basin Gold Limited – an emerging mid-tier gold producer listed on the Toronto and American stock exchanges – has signed an ore purchase agreement with Newmont Mining Corporation, whereby Newmont will purchase approximately 15 000 tonnes of bulk sample extracted from the company’s Hollister project, in Nevada, USA.

A news release published here said the 15000-tonne bulk sample had been produced from the Hollister project’s ongoing trial mining initiative, and had been sold to Newmont for processing, as part of the company’s metallurgical test work and processing optimisation of the Hollister ore. It was expected that the ore would yield an average grade of 1.3 oz/t of gold and 9 – 12 oz/t of silver.

The release confirmed that shipping of the ore had commenced earlier this week, and processing of the 15 000 tonnes would be completed by the end of December 2008. The ore purchase agreement further stated that Newmont would be responsible for all costs associated with the transportation and processing of the 15 000 tonnes, with Great Basin Gold being paid a total of US$470 for every recovered gold ounce.

GBG president and CEO Ferdi Dippenaar said: “The ore purchase agreement will not only allow the company to further refine its understanding and definition of the most efficient mining and processing methodologies for Hollister, but it will also allow the company to realise revenue which is important to ensure the sustainability of the project. The company is busy reviewing its options for the processing of ore to be produced at the Hollister project,” he added.