| Tue 10 Jun 2008, 15:38 | | GBG - Great Basin Gold`s Hollister Mine Initiates Production |
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GBG
GBG
GBG - Great Basin Gold`s Hollister Mine Initiates Production
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 MINE INITIATES PRODUCTION
June 10 2008, Vancouver, BC - Great Basin Gold Ltd. (TSX: GBG; AMEX: GBN; JSE:
GBG) ("Great Basin Gold" or the "Company") announces the milling results of
production at the Company`s Hollister Mine in Nevada, USA.
Processing of the ore was completed in May 2008 at Newmont`s Midas mill, located
20 miles from Hollister. Approximately 5,000 tons of ore with a gold head grade
of 1.2 ounces per ton and a silver head grade of 9.5 ounces per ton realized net
revenue of $3.9 million after toll treatment costs of $45 per dry ton and a
recoupment of capital amortization cost by Newmont. The Midas mill uses direct
cyanidation, counter-current decantation and a Merrill Crowe recovery system.
The results of the milling campaign were:
Processed Wet Tons 5,006
Processed Dry Tons 4,737
Contained Ounces - Gold 5,485
Contained Ounces - Silver 45,125
Head Grade ounces/ton - Gold 1.158
Head Grade ounces/ton - Silver 9.53
Recovered Ounces - Gold 4,644
Recovered Ounces - Silver 42,539
Recovery % - Gold 84.7
Recovery % -Silver 94.3
A second stockpile of approximately 5,000 tons of ore is being shipped to the
Midas mill and is expected to be processed in June 2008.
The construction of a regulatory-required Alimak raise to the surface in the
first quarter and commissioning of the escape-way in May 2008, allowed
underground production to commence with stoping on the Gwenivere and Clementine
veins. The Alimak raise was excavated from the 5200 level to the surface for a
length of 540 feet. The raise is being used as a secondary egress and
ventilation exhaust, allowing mine production to commence on schedule in May
2008.
Stoping progress on the Gwenivere vein includes cut and fill stoping as well as
shrinkage stoping. Clementine stopes are making use of cut and fill methods.
Reinforced concrete pillars are constructed prior to commencement of stoping.
The pillars will allow for the optimal recovery of high-grade ore. The planned
underground backfill system has been commissioned and a first fill has been
successfully completed on a Gwenivere vein cut and fill stope.
President and CEO Ferdi Dippenaar said: "The metallurgical results of the batch
processing of the underground tonnage at the Midas mill were much in line with
expectations. A better indication of recoveries is expected with the processing
of the second batch. The finalization of a long term toll treatment agreement
remains high on our list of priorities which we plan to conclude and good
progress is being made. As in the case of developing mines the head grades at
Hollister are expected to vary during the build-up phase, but current results
continue to confirm the prospective nature of this ore body. We are also pleased
with the completion of the first phase of the underground development program,
within budget, on schedule and without major safety incidents".
Johan Oelofse, Pr.Eng, FSAIMM, who is Chief Operating Officer of Great Basin
Gold and a qualified person, has reviewed and approved the contents of this
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 (0)11 301 1800
Melanee Henderson in North America 1 800 667-2114
Barbara Cano at Breakstone Group in the USA (646) 452-2334
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 40-F filing with the United States Securities and Exchange Commission and
its home jurisdiction filings that are available at www.sedar.com.
Date: 10/06/2008 15:38:49 Produced by the JSE SENS Department.
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