| Thu 21 Dec 2006, 8:50 | | GBG - Great Basin Invests in Aim-Listed Kryso Reso |
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GBG
GBG
GBG - Great Basin Invests in Aim-Listed Kryso Resources, gains entry into
prospective Terrane in central Asia
Great Basin Gold Limited
(Incorporated in Canada and registered as an External Company in South Africa)
(External Company Registration No. 2006/021304/10)
Share Code: GBG
ISIN Number: CA3901241057
("Great Basin" or "the company")
GREAT BASIN INVESTS IN AIM-LISTED KRYSO RESOURCES,
GAINS ENTRY INTO PROSPECTIVE TERRANE IN CENTRAL ASIA
Great Basin Gold Ltd("Great Basin or the "Company announces that it has signed
an agreement to acquire an initial 15% equity interest in Kryso Resources plc
("Kryso"), an AIM listed company with properties in Tajikistan. Pursuant to
the agreement, GBG will purchase 10,000,000 Kryso ordinary (or common) shares at
10 pence (CDN$0.21) per share for the initial 15% interest, and Kryso will issue
5,000,000 warrants to Great Basin exercisable at a price of 15 pence (CDN$0.31)
each into a common share of Kryso over two years. Based on Kryso`s current fully
diluted shares outstanding and if the warrants are exercised in full, Great
Basin would have a 21% interest in Kryso. The common shares issued have a 12-
month holding period. The exercise of the warrants will require the prior
approval by the Kryso shareholders, which Kryso has agreed to use its best
efforts to obtain at the next shareholders` meeting. As well, Great Basin has
secured an up to five year pre-emptive right to maintain its percentage equity
position in respect of future Kryso share allotments, which right needs to be
exercised to be retained. Great Basin would also have the right to appoint one
director to Kryso`s Board of Directors and a technical advisor to the management
team.
Kryso`s primary asset is the Pakrut gold project in Tajikistan, which has an
exploration license and mineral resources established under the Russian
classification system. Kryso currently has three company-owned diamond drill
rigs working the deposit, mainly from an underground adit. Preliminary work
indicates that the resources are potentially extractable using a combination of
open pit mining and underground mining.
Soviet-era ("SE") geologists estimated a mineral resource for the Pakrut project
(tabulated below) based on surface trenching, 4,800 meters of drilling in 23
drill holes and underground sampling from 3,030 meters of crosscuts and drifts
completed to April 1980.
Pakrut Project Historical Resource Estimate
Classification Tonnes Grade Contained
(g/t) Ounces
C2 (close to "Indicated") 5,070,000 3.84 626,000
P1 (close to "Inferred") 3,500,000 3.6 407,000
A specific gravity value of 2.67 g/cm3 was used as derived from 48 laboratory
determinations, a 1 g/t gold cut off was utilised, polygonal blocks were
created and measured with a planimeter, and a minimum thickness of 1 meter was
required to be part of the resource or the product of the grade in grams per
tonne and the thickness in meters had to be greater than 1. Grade
distributions were calculated using the Kogan Inverse Distance (1974)
methodology. Drill spacing varies from 25-50 meters for underground holes to
100 meters for surface holes. Trench spacing varies from less then 25 meters
to 50 meters. Channel samples taken in underground workings were spaced
approximately every 25 meters.
Although considered relevant, the reader is cautioned that the SE resource
estimates are historical in nature, does not comply with the guidelines of 43-
101 and should not be relied upon. Further, the estimate has not been
verified by the Company`s qualified person.
Preliminary and unverified results from metallurgical sampling completed from
1975 to 1977 indicated robust recoveries utilizing a standard -0.5 mm grind
(500 microns). In 1975, six samples weighing from 15 to 20 kg were sent to
the Technological Laboratory of Tajikgeology in Dushanbe for gravity
separation, cyanidation and floatation testing. In 1976, a further 600 tonnes
of material was sent to the same laboratory for verification and continued
testing. In 1977, two bulk samples were sent to the Ingichinsckoy Pilot-
Methodical Laboratory at Samarkandgeology in Uzbekistan. These samples were
68 tonnes and 3.1 tonnes, respectively. Overall, gold recoveries ranged from
44.37% to 98% using a gravity table, floatation recovered 19.89% to 91.8% of
the gold, and cyanidation alone recovered up to 86% of contained gold. A
combination of gravity and cyanidation gave the best gold recoveries of up to
99.28%. Although this testing shows promising recoveries, additional work
will need to be completed in order to verify these early reports. A
feasibility study is planned for completion in the third quarter of 2007.
Currently, there is a drill program underway, designed to test, verify and
increase the confidence in the mineral resource and a new resource estimate is
planned utilising JORC classification standards. The program is expected to be
completed in February 2007.
Kryso has completed 55 diamond drill holes at Pakrut during the current
program; assays for 25 of the holes have been reported to the AIM exchange and
are listed below (12 April, 2006 Drilling Report; 25 September, 2006 Drilling
Report):
Drill Hole # Length of From (m) To (m) Width Grade
Hole (m) (m) (g/t)
PHDD-1 52.8 0.00 52.80 52.80 1.99
Incl. 6.80 18.00 11.20 4.81
PKDD-2 108.5 27.40 103.50 76.10 0.90
Incl. 48.00 63.00 15.00 1.53
69.00 85.00 16.00 1.35
PKDD-3 137.50 23.50 39.10 15.60 1.67
Incl. 31.00 39.10 8.10 2.83
86.50 104.50 18.00 1.25
Incl. 92.10 98.50 6.40 1.76
PKDD-4 80.50 29.50 34.00 4.50 2.55
Incl. 29.50 32.50 3.00 3.60
62.50 71.00 8.50 3.24
Incl. 64.00 68.50 4.50 5.83
PKDD-5 100.00 28.00 40.00 12.00 1.27
Incl. 37.00 40.00 3.00 3.62
PKDD-6 85.00 43.00 46.00 3.00 1.02
54.00 61.80 7.80 6.46
Incl. 59.00 61.80 2.80 15.42
PKDD-7 85.00 61.00 62.00 1.00 3.76
77.00 79.00 2.00 1.96
PKDD-8 89.00 12.00 13.00 1.00 5.63
36.00 37.00 1.00 2.20
PKDD-9 69.00 52.50 69.00 16.50 0.96
Incl. 56.50 60.00 3.50 1.14
63.00 69.00 6.00 1.57
PKDD-10 82.00 34.00 38.00 4.00 1.99
PKDD-11 71.50 45.00 65.00 20.00 2.65
Incl. 45.00 55.00 10.00 4.40
Incl. 50.50 55.00 4.50 7.12
PKDD-12 62.50 18.00 21.00 3.00 5.81
Incl. 18.00 20.00 2.00 8.38
PKDD-13 100.00 15.00 16.00 1.00 4.46
23.00 26.00 3.00 0.95
38.00 47.00 9.00 3.78
Incl. 43.00 46.00 3.00 10.03
PKDD-14 161.50 53.50 57.00 3.50 1.18
95.00 99.00 4.00 1.03
104.00 107.00 3.00 0.74
116.00 118.00 2.00 9.74
126.00 128.00 2.00 3.14
Drill Hole # Length of From (m) To (m) Width Grade
Hole (m) (m) (g/t)
PKDD-15 101.50 33.00 34.00 1.00 3.50
40.00 67.00 27.00 1.84
Incl. 43.00 57.00 14.00 2.70
PKDD-16 121.00 47.00 58.00 11.00 1.45
Incl. 51.00 54.00 3.00 2.97
65.00 75.00 10.00 2.44
Incl. 67.00 75.00 8.00 2.87
101.50 107.50 6.00 1.07
PKDD-17 167.50 65.00 78.00 13.00 2.05
Incl. 69.00 73.50 4.50 4.06
89.00 99.00 10.00 1.56
114.00 119.00 5.00 7.02
122.00 130.00 8.00 1.08
149.50 167.50 18.00 0.85
PKDD-18 267.00 72.00 74.00 2.00 1.24
94.00 97.00 3.00 22.01
110.00 125.00 15.00 0.86
138.00 145.00 7.00 1.25
PKDD-19 164.50 56.00 110.00 54.00 2.06
82.00 99.00 17.00 4.68
117.00 120.00 3.00 0.57
PKDD-20 148.00 32.00 35.00 3.00 0.97
40.00 42.00 2.00 3.25
51.00 54.00 3.00 0.58
57.00 69.00 12.00 2.64
Incl. 63.00 69.00 6.00 4.30
83.00 105.00 22.00 1.30
Incl. 85.00 99.00 14.00 1.61
PKDD-21 173.50 73.00 79.00 6.00 3.43
Incl. 73.00 76.00 3.00 6.02
85.00 126.00 41.00 2.43
Incl. 86.00 112.00 26.00 3.23
139.00 143.00 4.00 1.24
PKDD-22 205.00 66.00 69.00 3.00 7.65
78.00 111.00 33.00 3.69
PKDD-23 97.00 25.00 34.00 9.00 0.82
38.00 78.00 40.00 8.56
Incl. 57.00 73.00 16.00 16.94
82.00 88.00 6.00 0.71
PKDD-24 185.5 No significant
intersections
PKDD-25 138.1 53.00 63.50 10.50 1.30
68.00 71.00 3.00 1.25
114.00 127.00 13.00 1.33
Incl. 115.00 117.60 2.60 4.49
Ivor Jones from Snowden Mining Industry Consultants Pty Ltd visited the Pakrut
Project in May 2006 to inspect the exploration project. A site visit report,
submitted to Vassilios Carellas of Kryso, outlined the following sampling
procedures performed by Kryso geologists. Drill core is cut utilising a
diamond-
impregnated matrix masonry saw and sampled in up to 1 meter intervals. Samples
are sent to Kryso`s laboratory in Dushanbe where they are placed in to an oven
for 30 minutes to dry. The dried samples are crushed in a two-stage process
with the crushers being cleaned by white quartz, brushed with a paint brush, and
then cleaned with compressed air. The whole sample is then pulverised in
batches (approximately 4 minutes per subsample) before being recombined for
splitting using a rotary splitter. A 750 gram sample is then taken and
pulverised for a further 4 minutes. A 250 gram and a 500 gram split are taken
and bagged, the 250 gram sample is sent to the Kryso Assay Laboratory for a
modified Aqua Regia-propane/butane burner analysis and the 500 gram sample is
collected for independent assaying at SGS Lakefield in Johannesburg, South
Africa for fire assay. Kryso diligently inserts Certified Reference Material
pulps into the main sample stream to track laboratory performance.
Kryso has also recently received an exploration license for the Hukas nickel -
copper prospect situated in central-eastern Tajikistan. The Hukas prospect was
identified during the SE; surface outcrops and mineralisation intersected by
core drilling indicated nickel, copper, cobalt and platinum group metals are
present. A drill program is scheduled to commence in the second half of 2007.
President and CEO Ferdi Dippenaar said:
"The investment in Kryso is an excellent opportunity for Great Basin to gain
entry into Central Asia, providing a platform for further expansion in this
highly prospective region and the potential to increase the Company`s mineral
resources and subsequent production. The Kryso management have operated in
Tajikistan for a number of years with local partners, and this will assist us in
more readily adapting to the operating environment."
Great Basin is a mining exploration and development company with advanced stage
gold assets on the Carlin Trend in Nevada, USA, and the Witwatersrand Goldfield
in South Africa. At the Burnstone Gold Project in South Africa, the Company is
advancing the first of a two-stage development program, designed to take the
Burnstone Project to production in two years. The current program, involving
construction of a decline and taking a bulk sample, will be completed in
approximately 14 months` time.
At the Hollister Property on the Carlin Trend in Nevada, USA, work is advancing
on the Hollister Development Block Project. An underground exploration and
development program is underway, designed to provide the necessary data for
completion of a feasibility study for the project in the second quarter of 2007.
Gernot Wober, P.Geo., a qualified person and Exploration Manager of Great Basin
Gold Ltd., is monitoring the Pakrut drilling program on behalf of Great Basin
and has reviewed this news release. He has not been to the Pakrut Project Site
and has not had the opportunity to review the drill core and data first hand.
All information disseminated in this release is based on reports supplied to
Great Basin by Kryso.
For further information on Kryso and its projects see www.kryso.com.
For additional details on Great Basin and its gold properties, please visit the
Company`s website at www.greatbasingold.com or contact Investor Services at
(604) 684-6365 or within North America at 1-800-667-2114.
Ferdi Dippenaar
President and CEO
Sponsor
JPMorgan
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, 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, effect of and changes to government policies regarding
mining and natural resource exploration and exploitation, availability of
capital and financing, geopolitical uncertainty and political and economic
instability, 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 20-F filing with the United
States Securities and Exchange Commission and its home jurisdiction filings that
are available at www.sedar.com.
20 December 2006
Date: 21/12/2006 08:50:27 Produced by the JSE SENS Department.
