Vancouver, Canada — MININGREVIEW.COM — 31 October 2008 – Great Basin Gold Limited – an emerging mid-tier gold producer listed on the Toronto and American stock exchanges – has been granted the mining right for its Burnstone mine by the Department of Minerals and Energy (DME).
A company news release issue here said the mining right had been granted earlier this week to the company’s wholly-owned subsidiary, Southgold Exploration (Pty) Limited. It authorised Southgold to mine for gold, silver and aggregate in the Burnstone project area, which is in the Witwatersrand Goldfield of South Africa.
In terms of the requirements of the Mineral and Petroleum Resources Development Act, Tranter Gold (Pty) Limited – a black economic empowerment (BEE) company – acquired 26% of the Burnstone project using the then feasibility study as a basis for valuation. To enable Tranter Gold to gain full exposure to the international asset base of Great Basin Gold, approval was given to convert the 26% see-through value of its holding in the Burnstone project to shares in the listed entity.
GBG president and CEO Ferdie Dippenaar commented: “Great Basin Gold and Tranter Gold, view this as a significant milestone which paves the way to deliver the project as planned.”
Development of the company’s Burnstone project is progressing well. The cross-cut to the mineralised reef is expected to be completed in the first quarter of 2009, at which time trial stoping to extract a bulk sample of approximately 26 000 tons will commence, and simultaneously development of the vertical shaft and decline shaft will continue.
“The Company plans to mine approximately 40 000 oz of gold at Burnstone in 2009,” Dippenaar added.
The US$153 million (R1.6 billion) Burnstone mine is scheduled to produce an average of 214 000 oz pa over the mine life of 14 years.