| Wed 1 Aug 2007, 14:59 | | GBG - Great Basin Gold Limited - Forms a joint ven |
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GBG
GBG
GBG - Great Basin Gold Limited - Forms a joint venture to Establish
exploration and mining activities in Mozambique
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 FORMS A JOINT VENTURE TO ESTABLISH EXPLORATION AND MINING
ACTIVITIES IN MOZAMBIQUE
August 1, 2007 Vancouver, BC - Great Basin Gold Ltd. ("Great Basin Gold" or
the "Company") (TSX: GBG; AMEX: GBN; JSE: GBGOLD) announces that on July
11, 2007 it concluded a Memorandum of Understanding ("MOU") to enter into a
joint venture with G S Minas E Refinaria Limitade (GSR) in Mozambique. The
purpose of the Joint Venture is to establish a gold exploration and mining
business in Mozambique. Great Basin Gold will have the exclusive right to
explore all GSR`s properties.
Great Basin Gold will have an 80% interest in the Joint Venture, and has
committed to exploration expenditures of approximately US$2.0 million over
a three year period on the Tsetsera Property, which is located 80 km south
of Manica in Mozambique, and other properties over which GSR holds mineral
rights.
Should any financing be required for the conducting of any mining
activities, each of the parties shall contribute pro rata to such financing
needs in proportion to their interests in the Joint Venture. Should GSR
not be in a position to contribute such finance required by the Joint
Venture in respect of any property or project, Great Basin Gold shall have
the right of first refusal to buy GSR`s remaining 20% share. The
consideration payable by Great Basin Gold in respect of the 20% share will
be settled in either cash or Great Basin Gold shares and the value will be
based on resources reported at that time and valued at fair market price.
GSR however will retain a 3% Net Smelter Royalty.
Great Basin Gold will manage the Joint Venture and will be responsible for
the day to day management of the exploration and other activities to be
conducted.
GSR currently owns the 17 square km Tsetsera Property. The property was
worked historically by artisanal miners, who crushed quartz vein material
and panned gold from the fines. The artisinal miners have exposed over 300
m strike length of quartz veins, 5 to 60 cm in width, within a phyllite
(strongly metamorphosed sediments). Rock samples taken during a field visit
returned gold assay values between 0.22 g/t and 26.8 g/t from grab samples,
and a chip sample across a 60 cm quartz vein returned 5.6 g/t Au. No other
work has been completed on the property.
Plans for moving forward with exploration activities include the
implementation of a gradient Induced Polarisation (IP) and a magnetic
susceptibility geophysical survey on the Tsetsera property. Mapping and
trenching is planned concurrently in addition to the geophysics to best
explore the property. Drilling of geophysical targets will follow.
President and CEO Ferdi Dippenaar said: "The Tsetsera property is being
viewed as Great Basin Gold`s first step into Mozambique and fits in well
with our strategy of becoming a regional player in Southern Africa. The
land position is located in northern Mozambique and there will be synergies
with Great Basin Gold`s interests through Rusaf in Tanzania. It is
possible in the long run to administer both regions from the same office in
Tanzania, thereby optimising both the management and infrastructure we have
in the region".
Gernot Wober, P.Geo, a qualified person and V.P. Exploration of Great Basin
Gold, is monitoring the program on behalf of Great Basin Gold and has
reviewed this news release.
Ferdi Dippenaar
President and CEO
For additional details on Great Basin and its gold properties, please visit
the Company`s website at www.grtbasin.com or contact Investor Services:
Tsholo Serunye in South Africa +27 11 884 1610
Melanee Henderson in North America +1 800 667-2114
Barbara Cano at Breakstone Group in the USA +1 646 452-2334
No regulatory authority has approved or disapproved the information
contained in this news release.
Cautionary and Forward Looking Statement Information
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
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,
effect of and changes to government policies regarding mining and natural
resource exploration and exploitation, availability of capital and
financing, geopolitical uncertainty and political and economic instability,
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.
Date: 01/08/2007 14:59:59 Produced by the JSE SENS Department.
