| Tue 13 Oct 2009, 14:30 | | GBG - Great Basin Gold Provides Burnstone Mineral Resource Update And Project |
|
GBG
GBG
GBG - Great Basin Gold Provides Burnstone Mineral Resource Update And Project
Progress
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 Provides Burnstone Mineral Resource Update and Project Progress
VANCOUVER, Oct. 13 /CNW/ - Great Basin Gold Ltd. ("Great Basin Gold" or
the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) today announced updated
mineral resource estimates and general project progress for its Burnstone
Project in the Mpumalanga Province, South Africa.
An updated mineral resource estimate has been completed inclusive of all
surface drilling up to July 2009 as tabulated below. At a cut-off of 400
cmg/t, the total Measured and Indicated resources have increased by 6% from
approximately 10.9 million ounces to 11.6 million ounces Au and the Inferred
resources have increased from approximately 2.4 million ounces Au to 4.6
million ounces Au.
-------------------------------------------------------------------------
Burnstone Mineral Resources
Overall Property - October 2009
-------------------------------------------------------------------------
RESOURCE Cut-off Tonnes Au Grade Contained Au
CATEGORY cmg/t millions g/t Ounces
-------------------------------------------------------------------------
Measured 300 62.9 5.29 10,697,000
-------------------------------------------------------
350 52.9 5.63 9,568,000
-------------------------------------------------------
400 43.9 6.08 8,569,500
-------------------------------------------------------------------------
Indicated 300 22.0 6.16 4,361,300
-------------------------------------------------------
350 15.2 7.26 3,554,700
-------------------------------------------------------
400 10.3 9.21 3,038,600
-------------------------------------------------------------------------
TOTAL MEASURED & 300 84.9 5.51 15,058,300
INDICATED -------------------------------------------------------
350 68.1 5.99 13,122,700
-------------------------------------------------------
400 54.1 6.67 11,608,100
-------------------------------------------------------------------------
Inferred 300 53.2 6.78 11,582,500
-------------------------------------------------------
350 35.5 7.69 8,771,600
-------------------------------------------------------
400 11.8 12.14 4,588,700
-------------------------------------------------------------------------
Notes to table:
1. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
2. Metallurgical recoveries are not applied to resource values.
The number of boreholes utilized in the resource estimate totals 296 and,
inclusive of all deflections, provides 1115 Kimberley Reef intersections. The
resource model has benefited from a full database verification and validation
exercise, which has led to information from 18 additional historical and 33
additional new drill holes being incorporated. Geozones of the area of
interest were updated as part of the basis for the estimation. These zones are
delineated by a combination of variable geological parameters such as channel
width, gold grade and gold accumulation (cmg/t), footwall lithology, and
sedimentary facies. The resource estimate covers a combination of mineral
rights, namely those within the mining right area, granted in October 2008,
and/or prospecting rights controlled by Great Basin Gold outside the mining
right area.
For continuity, the mineral resource classification method applied in
this update is consistent with that applied in previous Burnstone mineral
resource statements. A sensitivity analysis of the estimation kriging
variances and the minimum number of informing samples has also been undertaken
and assessed. The results demonstrate no significant or material change to the
estimated total Measured and Indicated resources.
The mineral resource in the Measured and Indicated categories represented
within the mining right area has increased by some 6% to 11.5 million ounces.
The tabulation below shows a "like for like" comparison with the January 2008
estimate.
-------------------------------------------------------------------------
Burnstone Mineral Resources - Comparison of 2008 & 2009 Estimates
Mining Right Area
-------------------------------------------------------------------------
2008 Mineral Resource 2009 Mineral Resource
Estimate Estimate
-------------------------------------------------------------------------
Au Contained Au Contained
RESOURCE Cut-off Tonnes Grade Au Tonnes Grade Au
CATEGORY cmg/t millions g/t Ounces millions g/t Ounces
-------------------------------------------------------------------------
Measured 350 39.0 7.56 9,474,000 52.9 5.63 9,568,000
-------------------------------------------------------------
400 33.8 7.80 8,484,000 43.9 6.08 8,569,500
-------------------------------------------------------------------------
Indicated 350 15.7 4.95 2,503,000 15.2 7.09 3,452,300
-------------------------------------------------------------
400 15.1 4.89 2,372,000 10.2 8.97 2,936,200
-------------------------------------------------------------------------
TOTAL 350 54.7 6.81 11,977,000 68.0 5.95 13,020,300
MEASURED & -------------------------------------------------------------
INDICATED 400 48.9 6.90 10,856,000 54.1 6.62 11,505,700
-------------------------------------------------------------------------
Inferred 350 18.6 4.42 2,642,000 10.9 7.13 2,507,600
-------------------------------------------------------------
400 17.0 4.37 2,394,000 2.9 10.84 1,008,200
-------------------------------------------------------------------------
Notes to table:
1. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
2. Metallurgical recoveries are not applied to resource values.
At a 400 cmg/t cut-off, the Company has an additional 102,400 ounces in
the measured and indicated category and 3.58 million ounces in inferred
resource in the areas adjacent to the mining right area, thereby increasing
the total area (overall property) Measured and Indicated resources to 11.6
million ounces Au and the Inferred resources to 4.6 million ounces Au. These
rights are held under prospecting permits. Exploration activities in these
areas will continue.
The Company is currently well advanced in the development program
designed to take the Burnstone Project to commercial production. The Kimberley
Reef has been accessed underground from the Main decline and has also been
intersected in the vertical shaft. Burnstone is now continuing with reef
development and is planning to commence trial stoping in October 2009. This
phase of the project development will be underpinned by an ongoing diamond
drill evaluation program consisting of a combination of strategically placed
surface drilling, closer spaced underground delineation and cover drilling.
Currently there are 6 diamond drill rigs in operation underground, and a
surface contractor has recently been appointed.
As at September 30, a total of 420 metres of reef development was
completed with approximately 22,000 ore tons accumulated on the surface
stockpile. The vertical shaft has progressed to 407 metres below surface, with
85 metres remaining to shaft bottom. Station development is currently underway
on 40 Level, which will service as the haulage and tipping level.
Work on the construction of the foundation for the Metallurgical Plant
has been completed and contractors have moved to site to start plant erection.
President and CEO Ferdi Dippenaar commented: "Development of this
exciting project continues in line with plan and is on track for commissioning
by end of June 2010. Another exciting aspect is the commencement of trial
mining to determine optimal mining methods which gets underway during October
2009. The current mining plan has assumed the mining of only 4.1 million
ounces of the 12.5 million ounces of the resource. The positive results from
the ongoing surface and now underground exploration programs continue to add
resource ounces which could positively impact on the future development and
production profile in the Burnstone region."
The Burnstone goldfield is defined by an 18 kilometre long, northwesterly
trending mineralized corridor hosting the Kimberley Reef, one of four main
gold-bearing units in the Witwatersrand Basin. At Burnstone, the central
portion of the gold corridor has been uplifted by two northwesterly trending
sub-parallel faults and as a result, a significant portion of the deposit
areas along the trend occur at relatively shallow depths of 200-750 metres.
The mineral resource estimation was done using geostatistical methods by
Deon van der Heever, Pr.Sci.Nat., an independent Qualified Person as defined
by Canadian Securities Regulations in National Instrument 43-101. The primary
analytical facility for the Burnstone Project from 2003-2005 has been SGS
Lakefield Research Africa (Pty) Limited and subsequently (2006-2009), ALS
Chemex has been the primary laboratory. Both facilities are located in
Johannesburg, South Africa.
Johan Oelofse, PrEng, FSAIMM, Chief Operating Officer for Great Basin
Gold, and 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
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.
Information Concerning Estimates of Measured, Indicated and Inferred
Resources
This news release also uses the terms "measured resources", "indicated
resources" and "inferred resources". The Company advises investors that
although these terms are recognized and required by Canadian regulations
(under National Instrument 43-101 Standards of Disclosure for Mineral
Projects), the U.S. Securities and Exchange Commission does not recognize
them. Investors are cautioned not to assume that any part or all of the
mineral deposits in these categories will ever be converted into reserves. In
addition, "inferred resources" have a great amount of uncertainty as to their
existence, and economic and legal feasibility. It cannot be assumed that all
or any part of an Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral Resources may
not form the basis of feasibility or pre-feasibility studies, or economic
studies except for Preliminary Assessment as defined under 43-101. Investors
are cautioned not to assume that part or all of an inferred resource exists,
or is economically or legally mineable.
/For further information: 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,
(646) 452-2334/
Privacy & Terms of Use Contact Us
(C) 2007. CNW Group
Date: 13/10/2009 14:30:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
