| Mon 8 Jun 2009, 14:30 | | GBG - Great Basin - Eskom`s power supply to Great Basin Gold`s Burnstone project |
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GBG
GBG
GBG - Great Basin - Eskom`s power supply to Great Basin Gold`s Burnstone project
finalized
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")
ESKOM`S POWER SUPPLY TO GREAT BASIN GOLD`S BURNSTONE PROJECT FINALIZED
June 8, 2009, Vancouver, BC - Great Basin Gold Ltd, ("Great Basin Gold" or the
"Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) today announced that ESKOM,
South Africa`s National Electricity Utility has undertaken to supply power to
its Burnstone Mine project. The two companies acknowledged the strategic
importance of the project to the development of the Dipalaseng Municipality in
Mpumalanga. Great Basin Gold is developing a shallow, long-life mine at a cost
of South African Rand ("ZAR") 2 billion (US$247 million) over the 19 year life
of mine for the project. The Company has accepted a ZAR119 million (US$14.6
million) official Budget Quotation for a new supply of power to the Burnstone
Mine. This quotation outlines the project for the supply of power to Burnstone
which is planned to be completed in time for the commissioning of the
metallurgical process plant that is currently under construction.
The ESKOM 2008 announcement, outlining a backlog in keeping up with the national
power demand, and its subsequent drastic power conservation scheme came at the
time when the Burnstone project had entered mid - stage construction. ESKOM
pledged support to the project after Great Basin Gold engaged with the utility
on the matter as part of its risk mitigation strategy. ESKOM committed to
Burnstone`s phased power demand requirements, subject to the terms of the Budget
Quotation, which involve the refurbishment of an existing line, and construction
of a new section of a power line to Burnstone. This process is jointly managed
by the two companies to coincide with project completion.
ESKOM`s support to Burnstone is of strategic importance to allow the project to
be developed to its planned production levels. In combination with the approval
of the Burnstone Mining Right and environmental management program in October
2008, the project now has the key elements in place for project development.
Ferdi Dippenaar commented, "We are pleased by ESKOM`s support and welcome their
positive attitude towards a project that will see the first new gold mine in
South Africa in many years. Securing sufficient permanent power supply to the
Burnstone Mine has been an ongoing concern to the Company and its investors. In
addition to the supply to the mine, ESKOM has planned to upgrade the regional
infrastructure which will bring economic development and wealth to a community
with high levels of poverty and unemployment. We look forward to working with
them to improve the living conditions of the communities in that region."
Johan Oelofse, PrEng, FSAIMM, Chief Operating Officer for Great Basin Gold and a
qualified person, has reviewed this release.
Ferdi Dippenaar
President and CEO
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
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: 08/06/2009 14:30:02 Produced by the JSE SENS Department.
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