| Wed 23 May 2007, 16:33 | | GBG - Great Basin - Hollister Project increases re |
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GBG
GBG
GBG - Great Basin - Hollister Project increases resources by 100% to
approximately 2 million equivalent ounces
GREAT BASIN GOLD LIMITED
(Incorporated in Canada and registered as an External Company in South Africa)
(Registration No. 2006/021304/10)
Share Code: GBG ISIN Number: CA3901241057
("Great Basin" or "the Company")
GREAT BASIN GOLD`S HOLLISTER PROJECT INCREASES RESOURCES BY 100% TO
APPROXIMATELY 2 MILLION EQUIVALENT OUNCES
May 23, 2007, Vancouver, BC - Great Basin Gold Ltd. (TSX: GBG; AMEX: GBN; JSE:
GB Gold) ("Great Basin Gold" or the "Company") announces that underground
drilling has expanded and upgraded the mineral resources at the Company`s
Hollister Project on the Carlin Trend in Nevada, USA by 100% to approximately 2
million ounces gold equivalent.
Surface exploration drilling by Great Basin Gold in the Hollister Development
Block in the period pre-2002, outlined a high grade-gold silver mineral
resource in the Clementine and Gwenivere vein systems. At a 0.25 oz/ton (8.57
g/t) cut-off, the inferred mineral resources were estimated at 790,000 tons
(717,000 tonnes) grading 1.29 oz/ton (44.23 g/t) gold and 7 oz/ton (240.0 g/t)
silver, totalling approximately 1 million ounces gold equivalent.
Following the construction of a decline shaft, approximately 55,000 feet
(16,750 m) of underground drilling has been completed over a twelve-month
period to February 2007. Drilling was done at 100 feet (30 m) spacing to fill
in gaps from the surface drilling program and in preparation for a feasibility
study on the project. The drilling program was highly successful with estimated
measured and indicated resources in excess of 1 million ounces from 903,000
tons (819,000 tonnes) at 1.03 oz/ton (35.32 g/t) gold and 5.71 oz/ton (195.77
g/t) being defined on the Clementine and Gwenivere vein systems. Inferred
mineral resources of another 930,000 ounces from 805,000 tons (731,000 tonnes)
at 1.08 oz/ton (37.13 g/t) gold and 3.94 oz/ton (134.92 g/t) silver were
reported.
RESOURCE Cut- TONS TONNES GRADEAu GRADEAu
CATEGORY Off oz/ton g/t
oz/ton
MEASURED 0.25 560,000 508,000 1.04 35.77
0.35 448,000 406,000 1.23 42.20
0.45 364,000 330,000 1.42 48.83
INDICATED 0.25 343,000 311,000 1.00 34.45
0.35 280,000 254,000 1.16 39.87
0.45 235,000 214,000 1.31 44.88
TOTAL 0.25 903,000 819,000 1.03 35.32
MEASURED
&
INDICATED
0.35 728,000 660,000 1.20 41.30
0.45 599,000 544,000 1.38 47.28
INFERRED 0.25 805,000 731,000 1.08 37.13
0.35 627,000 569,000 1.31 44.85
0.45 508,000 461,000 1.52 52.19
RESOURCE OUNCES GRADE GRADEAg OUNCES Ounces Au
CATEGORY Au Ag g/t Ag Equivalent
oz/ton
MEASURED 584,000 6.09 208.91 3,413,000 646,000
551,000 6.98 239.27 3,124,000 608,000
518,000 7.96 272.81 2,896,000 571,000
INDICATED 344,000 5.09 174.58 1,744,000 376,000
326,000 5.78 198.13 1,618,000 355,000
308,000 6.61 226.80 1,557,000 336,000
TOTAL 929,000 5.71 195.77 5,157,000 1,022,000
MEASURED
&
INDICATED
877,000 6.52 223.54 4,742,000 962,000
827,000 7.43 254.74 4,452,000 907,000
INFERRED 872,000 3.94 134.92 3,169,000 930,000
820,000 4.32 148.11 2,707,000 869,000
773,000 4.83 165.46 2,450,000 818,000
Notes:
(1) Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
(2) Gold equivalent in table above was calculated by using the following
metal prices: US$550/oz Au and US$10/oz Ag. Pre-2002 equivalent was
calculated using metal prices of US$290/oz Au and US$4.50/oz Ag. No
metal recoveries have been applied.
(3) Highlighted cut-off 0.25 oz/ton from 2006 preliminary assessment.
Final cut-off and recoveries are subject to feasibility study.
President and CEO Ferdi Dippenaar said: "We are pleased with the outcome of the
drilling program, as it validates the confidence that we have in the potential
of the deposit. Through an additional 40,000 foot (12,200 m) drilling program,
of which approximately 15,000 feet (4,570 m) have been completed, there is huge
potential to upgrade the inferred resources to measured and indicated
categories, and to add resources by drilling the newly discovered veins along
strike. A large number of drill holes have, subsequent to this report, been
completed and these results will be included in planned resource updates.
The drill holes reported in this resource statement have only been drilled to
an average depth of 500 feet (150 m) below the contact of the Ordovician host
rocks with the overlying volcanics (approximately 700 feet (210 m) below
surface). Newly drilled holes have intersected mineralisation at an approximate
depth of 920 feet (280 m) below the contact and we are awaiting assays. The
results from these could impact significantly on the extent of mineralisation
that will be available for further exploration and possible inclusion in a
revised mine plan for the Hollister Project."
The measured and indicated resources which have been defined at the Hollister
Project will now be used for mine planning. As engineering and other studies
have been progressing concurrently with the drilling program, Great Basin Gold
plans to complete the feasibility study by the end of June 2007.
The mineral resources were estimated by combination of kriging and inverse
distance. The estimates were completed by Deon van den Heever, Pr.Sci.Nat., of
Geologix Mineral Resource Consultants (Pty) Ltd., an independent Qualified
Person as defined by Canadian Securities Regulations in National Instrument 43-
101. Details of the estimate will be included in a technical report in 45
days.
For more information on Great Basin and its projects, please visit the
Company`s website at www.greatbasingold.com or call Investor Services at 604-
684-6365 or within North America at 1-800-667-2114.
Ferdi Dippenaar
President and CEO
Samples collected from the Hollister Development Block Project are stored in a
secure facility until picked up by Inspectorate America Corporation
(Inspectorate) of Sparks, Nevada. Vein samples are analyzed by either metallic
screen or standard fire assay procedures. For metallic screen analyses, vein
sample preparation consists of drying and jaw-crushing the entire sample to 90%
passing 10-mesh, taking a 500 g sub-sample using a rotary splitter, and then
pulverizing the 500 g sub-sample to 90% passing 150-mesh using a large capacity
ring and puck pulverizer. Gold and silver determinations are by metallic
screen analysis, with two 1 assay-ton (30 g) fire assays completed on the fine
fraction; the coarse fraction is fire assayed in its entirety. For standard
fire assay, vein sample preparation consists of drying and jaw-crushing the
entire sample to 90% passing 10-mesh, taking a 300 g sub-sample using a Jones
splitter, and then pulverizing the 300 g sub-sample to 90% passing 150-mesh
using a large capacity ring and puck pulverizer. A 30 g charge is fire
assayed. All metal determinations are by gravimetric finish. Vein samples
analyzed by standard fire assay will be re-assayed using metallic screen
procedures. Laboratory Quality Assurance/Quality Control (QA/QC) is monitored
using coarse reject blanks and assay standards, duplicate fire assays, and
Inspectorate`s internal standards and blanks. Coarse blanks (barren rhyolite
or landscape marble) and assay standards are inserted into the sample sequence
as blind samples prior to submitting the samples to the laboratory.
Inspectorate also inserts assay standards and blanks into the sample stream.
QA/QC results are within acceptable limits.
No regulatory authority has approved or disapproved the information contained
in this news release.
This release includes certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements of
historical facts, that address possible future commercial production, reserve
potential, exploration drilling results, development, feasibility or
exploitation activities and events or developments that Great Basin Gold
expects to occur are forward-looking statements. Although the Company believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from those
in the forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include market
prices, exploitation and exploration successes, continuity of mineralization,
uncertainties related to the ability to obtain necessary permits, licenses and
title and delays due to third party opposition, geopolitical uncertainty,
changes in government policies regarding mining and natural resource
exploration and exploitation, and continued availability of capital and
financing, and general economic, market or business conditions. Investors are
cautioned that any such statements are not guarantees of future performance and
those actual results or developments may differ materially from those projected
in the forward-looking statements. For more information on the Company,
Investors should review the Company`s annual Form 20-F filing with the United
States Securities and Exchange Commission and its home jurisdiction filings
that are available at www.sedar.com.
Information Concerning Estimates of Measured, Indicated and Inferred Resources
This news release also uses the terms "measured resources", "indicated
resources" and "inferred resources". The Company advises investors that
although these terms are recognized and required by Canadian regulations (under
National Instrument 43-101 Standards of Disclosure for Mineral Projects), the
U.S. Securities and Exchange Commission does not recognize them. Investors are
cautioned not to assume that any part or all of the mineral deposits in these
categories will ever be converted into reserves. In addition, `inferred
resources` have a great amount of uncertainty as to their existence, and
economic and legal feasibility. It cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of Inferred Mineral Resources may not form the basis
of feasibility or pre-feasibility studies, or economic studies except for
Preliminary Assessment as defined under 43-101. Investors are cautioned not to
assume that part or all of an inferred resource exists, or is economically or
legally mineable.
Date: 23/05/2007 16:33:01 Produced by the JSE SENS Department.
