Vancouver, Canada — MININGREVIEW.COM — 10 November 2009 – Great Basin Gold Limited (GBG) – an emerging mid-tier gold producer listed on the Toronto and American stock exchanges – says the highlights of its operations for the quarter ended 30 September 2009 include commencement of long-hole stoping trial-mining methods at its Burnstone project in South Africa.
In its results statement released here the company said that for Burnstone, development costs of CDN$29 million (R217 million) had been capitalised in the quarter compared to CDN$33 million (R247 million) in the previous three months. In the nine months ended 30 September 2009, development costs of CDN$69 million (R517 million) had been capitalised as activities related to the construction of the mine infrastructure accelerated.
The statement added that good progress continued to be made with the development of surface and underground infrastructure at the Burnstone Project. By 30 September 2 441 m of decline development had been completed. A total of 251 m of on-reef development had been completed during the quarter with good continuity in reef exposed.
It went on to say that the first Long Hole Stope had also been accessed, and a number of blasts taken. The company planned to implement this higher level of mechanised mining on a trial basis over a period of 9 to 12 months before final evaluation.
Sinking of the vertical shaft at Burnstone had continued and at 30 September 2009, the shaft had reached a depth of 408 m below surface with 79 m remaining to shaft bottom.
President and CEO Ferdi Dippenaar commented: “While the project funding facility for our Burnstone project was approaching finalisation, we saw an opportunity to substitute unsecured convertible debt with a competitive coupon and we were delighted to be able to capitalise on it. The net proceeds of CDN$105 million (R787 million), will be used to repay the project funding drawn down to date , and together with CDN$55 million (R412 million) cash on hand we have fully funded the remaining costs for completion of the Burnstone project.