| Tue 24 Mar 2009, 14:31 | | GBG - Great Basin Reports Progress In Quarter Ending December 31 2008 |
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GBG
GBG
GBG - Great Basin Reports Progress In Quarter Ending December 31, 2008
GREAT BASIN GOLD LTD
(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")
GREAT BASIN REPORTS PROGRESS IN QUARTER ENDING DECEMBER 31, 2008
March 24, 2009, Vancouver, BC - Great Basin Gold Ltd, ("Great Basin" or the
"Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announces results for the
quarter ending December 31, 2008 (4th quarter of fiscal 2008). A further
highlight was the conclusion, subsequent to the end of the quarter, of a
CDN$130 million financing to complete its Burnstone Project in South Africa.
The Company incurred a loss of CDN 1 cent compared to the CDN 15 cents for
the 4th quarter. This was mainly influenced by a Future Income Tax credit of
CDN 10 cents per share. Revenue of CDN$16.9 million net of costs of CDN$3.2
million was realized from the sale of recovered ore from Hollister during the
quarter. For the financial year, CDN$29.1 million in revenue was generated
from Hollister, before toll milling costs of CDN$4.4 million.
Pre-development expenses for both projects decreased from CDN$17 million to
CDN$16 million quarter on quarter. In line with increased activity in the
construction and development of the two projects, total annual pre-
development costs of CDN$62.6 million were incurred, compared to CDN$30.1
million for 2007. As Southgold Exploration (Pty) Limited was granted a New
Order Mining Right on October 29, 2008, by the Department of Minerals and
Energy for its Burnstone Project area, pre-development costs of CDN7.0
million were capitalized as from November 2008.
Good progress continues to be made with the development of surface and
underground infrastructure at the Burnstone Project. At March 22, 2009; 2,181
meters of decline development had been completed. The access decline
continues beyond the reef elevation, with approximately 967 metres remaining
to the base of the vertical shaft position. Two cross-cuts to the reef are
currently being developed to access Blocks B3 and C with 53 metres and 85
metres respectively remaining before stope preparation for mining commences.
Sinking of the vertical shaft at Burnstone continues and as at March 22,
2009, the shaft had reached a depth of 192 meters below surface. Construction
of the permanent headgear as well as the installation of the main sinking
winder was completed in January 2009, which is allowing for a faster rate of
shaft sinking. The final depth of the shaft is planned at 501 meters.
Good progress was also reported from the Hollister Property in Nevada, USA.
Trial stoping continues on the Gwenivere and Clementine veins with a total of
24,546 tons being extracted during the quarter compared to 9,873 tons for the
3rd quarter. For the financial year, a total of 33,830 tons at a head grade
of 1.6 gold equivalent ounces per ton (Au eqv. oz/t) was milled resulting in
a net 38,465 gold equivalent ounces being recovered (Gold equivalent is
calculated at metal prices of US$828.96/oz for gold and US$12.22/oz for
silver).
As at December 31, 2008, a total of 16,331 tons at an estimated head grade of
1.4 oz/t of gold and 10 oz/t of silver had been stockpiled.
Underground cash costs, excluding milling and transport costs, totalled
US$272/oz during the quarter, which is a 24% decrease from the 3rd quarter.
No milling and transport costs were incurred in the 4th quarter. On an
annualised basis, these costs were US$302 Au eqv./oz and US$215 Au eqv./oz
for milling and transport. Metallurgical processing costs incurred on the
ore treated are based on 20% of actual metal recovery and equate to
approximately US$215 Au eqv./oz. The operation will benefit from economies
of scale as the tonnage build-up continues.
On an annualised basis, underground waste development was ahead of schedule
with 17,111 feet being completed compared to 14,300 feet planned. Although
this has resulted in an acceleration of pre-development expenses, it also
allowed for flexibility in the application of the various trial mining
methods
Positive surface exploration results continued with follow up drilling in the
newly discovered vein system in the Hatter Graben area of the Hollister
Property. Although assays are pending, confirmation drilling continues to
indicate the existence of an interesting and prospective deposit. Although
the Company has cut back on all exploration expenditures, it is anticipated
that exploration in this exciting area will continue.
President and CEO Ferdi Dippenaar commented; "The Company is in an
interesting phase in the development of its two quality gold projects.
Hollister continues to improve as management records successes in the
application of the various trial mining methods. We expect this to continue
in 2009. Following the financing in early March 2009, the Company now has
adequate funding to deliver its Burnstone Project in South Africa. With
development underway to exploit mineral reserves in two blocks in close
proximity to the decline, early stage production is expected in the 2nd
quarter of 2009, with the project planned to be in commercial production by
end of June 2010. This would include the completion of the access decline,
commissioning of the vertical shaft as well as the commissioning of the
metallurgical plant."
Johan Oelofse, Pr.Eng., FSAIMM, Chief Operating Officer of Great Basin and a
qualified person has reviewed this release on behalf of the Company.
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 9113
Barbara Cano at Breakstone Group in the USA (646) 452 2334
No regulatory authority has approved or disapproved the information contain
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, 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: 24/03/2009 14:31:01 Produced by the JSE SENS Department.
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