HomeGoldHollister resource leaps 60%

Hollister resource leaps 60%

The portal at GBG’s
Hollister project in
the United States
Vancouver, Canada — MININGREVIEW.COM — 19 June 2008 – Great Basin Gold Limited (GBG) – an emerging mid-tier gold producer listed on the Toronto and American stock exchanges – has announced a 60% resource increase at the company’s Hollister project in Nevada, in the United States. The company also owns and controls the US$153 million (almost R1.2 billion) Burnstone project in South Africa, which is scheduled to produce an average of 214 000 oz per annum of gold from 2011 for at least 14 years.

A company news release issued here last night said that underground drilling had expanded and upgraded the mineral resources in the measured and indicated category at its Hollister project    from 1 million to 1.6 million oz.  Overall the mineral resources had increased by 15% from 2 million to 2.3 million oz.

The release explained that further exploration and infill drilling – totaling approximately 30 000 feet and adding to the 55 000 feet completed for the feasibility study – had been completed in the period from March 2007 to January 2008 to fill in gaps and to explore the deeper parts of the deposit.

At a 0.25 oz/t cut-off, approximately 1.6 million gold equivalent oz were contained in estimated measured and indicated resources of 1 615 000 tons at a grade of 0.87 oz/t, it added. A further 680 000 gold equivalent oz were contained in inferred resources of 1 252 000 tons at a grade of 0.51 oz/ton.

The short term focus of the exploration programme was directed at converting previous inferred resources to measured and indicated categories. To date, the release continued, significant success has been achieved. The longer term focus of the ongoing programme is to explore the deposit along strike and at depth, with good progress overall.

GBG currently has two drill rigs in operation underground, with a third expected to be mobilised soon.