| Tue 11 Aug 2009, 8:06 | | GBG - Great Basin Gold Successfully Completes Refurbishment of Esmeralda Mill |
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GBG
GBG
GBG - Great Basin Gold Successfully Completes Refurbishment of Esmeralda Mill
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")
GREAT BASIN GOLD SUCCESSFULLY COMPLETES REFURBISHMENT OF ESMERALDA MILL
August 10, 2009, Vancouver, BC - Great Basin Gold Ltd, ("Great Basin" or the
"Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announces that it has completed
the refurbishment of the Esmeralda Mill. The Esmeralda Mill will process
material extracted from the Hollister Gold Project at which trial mining is
currently underway.
The commissioning process at Esmeralda commenced in mid July. The commissioning
will proceed in two phases. Following the completion of a concrete ore pad, low
grade material from Hollister was shipped to Esmeralda. This material will be
used for the first-phase cold commissioning of the mill with higher grade
material to follow in the second phase. A Gekko float and gravity circuit will
be installed and commissioned by the end of October 2009 to allow for maximum
throughput of 350 tons per day and an estimated 91% recovery of the high metal
content material from Hollister.
Until the Gekko float and gravity section has been commissioned, the rate of
milling will be determined by the grade of material. The mill will achieve the
designed rate of 350 tons per day on material with a contained grade 0.5 oz/ton
Au and 3 oz/ton Ag or less, using a standard concentrator. In the interim,
higher grade material will be restricted to allow for extended leach time to get
optimal recovery as well as the elution of the higher metal values from the
loaded carbon.
Construction of a new refinery at Esmeralda will coincide with a design
completion that incorporates the new state-of the-art emission controls
consistent with the Nevada Department of Environmental Protection Mercury
Control Program. Commissioning of the refinery will commence upon receipt of the
air quality Permit to Construct. In the interim, concentrate will be refined off
site.
Capital expenditure on the refurbishment has increased as a result of an
additional upgrade cost (US$1.8 million) that would allow for the plant to be
expanded to a 700 tons per day operation in future as well as the cost (US$1.2
million) of certain additional environmental requirements which affect the final
design and construction of the mill and associated infrastructure. The total
cost of refurbishment (excluding refurbishment and commissioning of the smelter
and additional investment to upsize the mill) is forecast to be US$11 million.
Ferdi Dippenaar, CEO commented; "We are pleased with the manner in which the
refurbishment and upgrade of the facility was completed. No problems have thus
far been encountered with the commissioning of the facility. The addition of the
flotation and gravity section will allow higher throughput and recoveries of the
high grade material being extracted at Hollister. Projected milling costs of
approximately US$110/ton, transportation included, are significantly lower than
the treatment costs currently incurred. Since acquiring the Esmeralda mill and
property, the Company has evaluated the option of increasing the capacity of the
mill to 700 tons per day. A decision to increase the capacity of the mill will
be determined by the conclusions from the desk top study due for completion in
August. This study includes a review of the Esmeralda deposit, a past producer,
to determine the potential to re-open the mine."
Johan Oelofse, Pr.Eng, FSAIMM, Great Basin`s Chief Operating Officer, a
Qualified Person as defined by Canadian Securities Regulations in National
Instrument 43-101, has reviewed and approved the information in this news
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
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.
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: 11/08/2009 08:06:01 Produced by the JSE SENS Department.
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