| Wed 25 Feb 2009, 15:30 | | GBG - Great Basin Gold - Burnstone Gold Project: Execution Of Mining Right And |
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GBG
GBG
GBG - Great Basin Gold - Burnstone Gold Project: Execution Of Mining Right And
Environmental Management Program
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 Gold" or the "Company")
BURNSTONE GOLD PROJECT:
EXECUTION OF MINING RIGHT AND ENVIRONMENTAL MANAGEMENT PROGRAM
February 25, 2009, Vancouver, BC - Great Basin Gold Ltd, ("Great Basin Gold" or
the "Company"), (TSX: GBG; NYSE Alternext: GBG; JSE: GBG) announces the
execution of its mining right, and the approval of its environmental management
program by the Department of Minerals and Energy ("DME") for the Burnstone Gold
Project in South Africa.
A mining right to allow the Company`s wholly owned subsidiary, Southgold
Exploration (Pty) Ltd ("Southgold"), to mine gold, silver and aggregate in the
Burnstone mine area was initially granted on October 28, 2008.
This mining right was notarially executed in the name of Southgold on February
17, 2009 by the DME Regional Manager: Mpumalanga. The mining right is valid for
an initial period of 18 years from date of execution and gives Southgold the
right to mine for gold and silver in the mining area known as Area 1. The
Company will apply for an extension of the licensing period, and will do so in
terms of section 24 of the Mineral and Petroleum Resources Development Act, 2002
("MPRDA"), which makes provision for the renewal of the mining license for
periods not exceeding 30 years at a time.
Simultaneously with the execution of the mining right, the environmental
management program for Area 1 of the Burnstone Mine was approved by the DME. In
terms of section 23 (5) of the MPRDA, a mining right comes into effect on the
day the environmental management program is approved.
The mandatory legislative Environmental Impact Assessment ("EIA") for Area 2 has
commenced. It is envisaged that the EIA will be completed by September 2009,
after which the DME will be approached for approval to access this mining region
by way of a twin decline shaft. Currently approximately 7.5 million tonnes in
Area 2 is in the mine plan, which will initially extract approximately 50,000
tons of ore per month. Although Area 2 would be accessed by a dedicated twin
decline shaft, mining operations would share the surface infrastructure
currently established for Area 1, with the exclusion of ventilation shafts. To
date, 80 surface boreholes have been drilled on Area 2. In addition to
exploration drilling in Area 4, a further phase of surface drilling is planned
to begin during the second half of 2009 in Area 2, to evaluate the area of the
decline in more detail as well as confirm extensions of the Kimberley Reef.
Ferdi Dippenaar, President and CEO, commented: "This is another important
milestone in the history of Great Basin Gold, as it clears the way for
commercial mining at the Burnstone project. We wish to extend our appreciation
to the DME for all the guidance and assistance over the past year which resulted
in the Company obtaining the mining right and thereby initiating the start up
one of the few new gold mines in South Africa in the past 30 years. We look
forward to delivering a commercial mining operation by June 2010."
Johan Oelofse, PrEng, FSAIMM, Chief Operating Officer for the Company and a
qualified person, has reviewed this news release on behalf of Great Basin Gold.
For additional details on Great Basin Gold Ltd. 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 +1 646 452-2334
Ferdi Dippenaar
President and CEO
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, bank loan
arrangements, 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
for precious metals, credit availability, development 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 Canadian jurisdiction
filings that are available at www.sedar.com.
Date: 25/02/2009 15:30:01 Produced by the JSE SENS Department.
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