HomeGoldGood progress at GBG projects in SA and USA

Good progress at GBG projects in SA and USA

The portal at GBG’s
Burnstone project in
South Africa
Vancouver, Canada — MININGREVIEW.COM — 14 August 2008 – One of the highlights of Great Basin Gold Limited’s second quarter of 2008 was the commencement of trial stoping on the Gweniviere and Clementine veins at the company’s Hollister development project in Nevada, in the United States.
A news release issued here said a total of 16 128 tonnes had been mined, year-to–date, and 8 643 dry tonnes at a head grade of 33.4 g/t of gold and 329.1 g/t of silver had been milled, from which a net of 8 714 gold equivalent oz had been recovered. A total of US$7.8 million (R58.5 million) had been recognised as revenue from trial mining activities at the Hollister development project.

The release added that the stockpile at Hollister had been increased to 7 485 tons at an estimated head grade of 34.3 g/t of gold and 340.3 g/t of silver, as at 8 August 2008.

During the quarter, the company also announced a 60% increase in measured and indicated mineral resources at Hollister to 1.6 million oz, after positive results from underground and in-fill drilling.

GBG went on to say that following positive surface exploration results indicating the discovery of a new vein system in the Hatter Graben area, it was anticipated that the US$14.4 million (R108 million) exploration programme at Hollister would be extended into 2009.

Turning to the Burnstone development project in South Africa, the company said good progress had been made with the construction of surface and underground infrastructure. At 7 August 2008, almost 1,800m of decline development had been completed, with 414m remaining to the cross-cut to the gold-bearing reef. Exploration drilling on the initial mining block had indicated that the mineralised zonewas 31m lower than anticipated, calling for approximately 180m of additional decline development. This could result in a potential three-month delay with access to the mining blocks now planned for the December 2008 quarter.

The sinking of the vertical shaft at Burnstone had reached a depth of 80m below surface. The final depth of the shaft was planned at 501m.

GBG president and CEO Ferdi Dippenaar commented: “We are pleased with the progress made with both projects. Great Basin Gold is fully funded to complete its two development projects and exploration commitments, with the signing of term sheets for US$124 million (R930 million) in project finance using the Burnstone Project as collateral,” he added.