| Wed 13 Aug 2008, 15:20 | | GBG - Great Basin Gold Limited - Great Basin Gold commences trial mining |
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GBG
GBG
GBG - Great Basin Gold Limited - Great Basin Gold commences trial mining
on Gwenivere and Clementine high grade veins at Hollister Project in Nevada
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 COMMENCES TRIAL MINING
ON GWENIVERE AND CLEMENTINE HIGH GRADE VEINS AT HOLLISTER PROJECT IN NEVADA
August 13, 2008, Vancouver, BC - Great Basin Gold Ltd. (TSX: GBG; AMEX: GBN;
JSE: GBG) (hereafter "Great Basin" or the "Company") announces the results for
the quarter ending June 30 2008.
One of the highlights of the period was the commencement of trial stoping on
the Gweniviere and Clementine veins at the Hollister Development Project. A
total of 16,128 tons has been mined, year-to-date, and 8,643 dry tons at a head
grade of 0.975 oz/t (33.4 g/t) of gold and 9.6 oz/t (329.1 g/t) of silver have
been milled from which a net of 8,714 gold equivalent ounces were recovered. A
total of US$7.8 million was recognized as revenue from trial mining activities
at the Hollister Development Project.
The stockpile at Hollister has been increased to 7,485 tons at an estimated head
grade of 1.0 oz/t (34.3 g/t) of gold and 10 oz/t (340.3 g/t) of silver at August
8 2008.
Underground cash costs associated with the tons milled totals US$443/oz, which
was in line with expectations. Higher than expected toll metallurgical
processing costs of US$192/oz was incurred on the milled tons and, as a result,
the Company is currently reviewing alternative options for future treatment of
its ore.
To allow for flexibility underground, waste development is ahead of schedule
with 5,714 feet being completed compared to the planned 3,150 feet. This has
resulted in an acceleration of pre-development expenses, which are currently
being expensed as the full commercial Plan of Operations has not yet been
approved.
During the quarter, the Company also announced a 60% increase in measured and
indicated mineral resources at Hollister to 1.6 million ounces following
positive results from underground and in-fill drilling (see News Release dated
June 18, 2008).
Following positive surface exploration results indicating the discovery of a new
vein system in the Hatter Graben area, it is anticipated that the US$14.4
million exploration programs at Hollister will be extended into 2009. Eight
surface holes have been drilled in the Hatter Graben area; final assays have
been received for three holes and results for five holes are pending.
At the Burnstone Development Project in South Africa, good progress was made
with the construction of surface and underground infrastructure. At August 7
2008, 1,786 meters of decline development had been completed, with 414 meters
remaining to the cross-cut to the gold-bearing reef. Exploration drilling on the
initial mining block has indicated that the mineralized zone is 31 meters lower
than anticipated, calling for approximately 180 meters of additional decline
development. This could result in a potential three-month delay with access to
the mining blocks now planned for the December 2008 quarter. This additional
development is included in the 414 meters to the cross-cut. The additional
development has some benefit in that a second mining block becomes accessible
earlier, and it is expected that the 26,000-tonne bulk sample as well as the
planned production build-up to 45,000 oz in 2009 will be achieved.
The sinking of the vertical shaft at Burnstone commenced during April and, to
August 8 2008, had reached a depth of 80 meters below surface. The final depth
of the shaft is planned at 501 meters.
The Company commenced a second phase program of approximately 28,000 meters
of Air Core, RC and Diamond drilling at its exploration properties in Tanzania.
Encouraging results have been achieved. It is expected that the results will be
available in the December 2008 quarter, once assays are received. Exploration
programs are also underway on properties in Mozambique (Tsetsera), Alaska
(Ganes Creek) and Russia (Iturup, Kurils Islands).
Ferdi Dippenaar, CEO and President commented "We are pleased with the progress
made with the trial mining at our Hollister Project. The Plan of Operations was
submitted in April 2008, and the process is underway with comments having being
received from the Bureau of Land Management. The situation at Burnstone Project
in South Africa is similar.The application for a mining license was submitted in
September 2007, and we expect to have the process completed by October of this
year. Great Basin Gold is fully funded to complete its two development projects
and exploration commitments with the signing of term sheets for $124 million in
project finance using the Burnstone Project as collateral. This
bodes well in what seems to be an extremely difficult market for gold producers
who are in need of financing."
Johan Oelofse, PrEng, FSAIMM, Chief Operating Officer for Great Basin and a
qualified person, has reviewed the technical information in this news release
on behalf of the Company.
Great Basin will host a telephone conference call webcast at 10:00 am US EDT/
4:00 PM SAST on the same day to discuss the results. The conference call can
be accessed using dial- in number: 866.510.0710 (US), +1 617-597-5378
(international) Passcode: 79618799.
A replay will be available starting Wednesday, August 13, 2008 at 1 PM and
ending at 11:59 PM ET on August 20, 2008. Dial-in Number: 888-286-8010 (US),
+1 617-801-6888 (international). Passcode: 45474397.
A live webcast of the conference call will be available at www.grtbasin.com. A
webcast replay will be available through the end of the day on August 20, 2008.
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
Michael Curlook in North America 1 888 633 9332
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.
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 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, 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.
Cautionary Note to investors regarding Estimates of Measured and Indicated
Resources
This press release uses the term "measured and indicated resources". The Company
advises investors that while that term is recognized and required by Canadian
regulators, the U.S. Securities and Exchange Commission does not recognize the
term. Investors are cautioned not to assume that any part or all of the mineral
deposits in this category will ever be converted into a reserve.
Date: 13/08/2008 15:20:14 Produced by the JSE SENS Department.
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