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GBG
GBG
GBG - Great Basin Gold Limited - Ongoing exploration increases resources at
Great Basin Gold`s Burnstone Project
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")
Ongoing exploration increases resources at Great Basin Gold`s Burnstone
Project
Great Basin announces an update on the gold resources at its Burnstone Gold
Project in the Witwatersrand Basin in South Africa
An initial program designed to upgrade and expand the mineral resources in
Area 1 and Area 2 is nearing completion. Results from 8 of 15 drill holes
have been incorporated into the resource model and new estimates of the
mineral resources are tabulated below. The grades as well as the tonnes have
increased in all categories. As a result, at the cut-off grade of 400 cmg/t
gold (the equivalent of 4 g /t over 1 meter) highlighted below, 582,000
ounces of gold have been added to the total measured and indicated resources
(an increase of 8%) and 219,000 ounces have been added to the inferred
resources (an increase of 54%).
Burnstone Gold Project
Mineral Resources - January
2007
Category Cut-off Grade Contained
(cmg/t) Tonnes (g/t) Gold
(ounces)
Measured 350 26,221,000 8.99 7,583,000
400 21,045,000 9.69 6,555,000
Indicated 350 9,262,000 4.53 1,348,000
400 8,246,000 4.28 1,135,000
Measured & Indicated 350 35,483,000 7.83 8,930,000
400 29,291,000 8.17 7,690,000
Inferred 350 1,442,000 12.94 600,000
400 836,000 15.18 408,000
It is anticipated that the remainder of the drilling program will be
completed during the current quarter, and the results will be incorporated in
the mining plan being prepared by Turgis Engineering.
Great Basin Gold completed a positive feasibility study on Area 1 of the
Burnstone Project in May 2006. The Company is currently 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 12
months` time.
President and CEO Ferdi Dippenaar said: "The objective of the 2006 drilling
program was to expand and upgrade the mineral resources of the deposit. With
an overall increase of 800,000 ounces, this objective was successfully
achieved. The updated resource model has been forwarded to Turgis to update,
expand and optimize the mine plan from the 2006 feasibility study. If the
results from the remaining drilling are in line with expectations, a project
to optimize the 2006 Feasibility Study will formally get underway. As a
consequence, we believe that the production profile from Burnstone Mine could
increase by between 10% to 15%."
The Burnstone goldfield is defined by an 18 kilometre long, northwesterly
trending mineralized corridor developed within 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 250-750
meters. Drilling by Great Basin Gold has also revealed that several of the
gold-bearing areas, like Areas 1 and 2 mentioned above, are continuous, but
are referenced to describe different areas of focus for the ongoing drilling
program.
The estimates were done by Deon van den Heever, Pr.Sci.Nat., of Geologix
Mineral Resource Consultants (Pty) Ltd., 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 was
SGS Lakefield Research Africa (Pty) Limited and in 2006-2007, ALS Chemex was
the primary laboratory. Both facilities are located in Johannesburg, South
Africa.
For more information on Great Basin and its projects, please visit the
Company`s website at www.greatbasingold.com or call Investor Services at 604-
684-6365 or within North America at 1-800-667-2114.
Ferdi Dippenaar
President and CEO
30 January 2007
Sponsor: JPMorgan Equities Limited
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 20-F filing
with the United States Securities and Exchange Commission and its home
jurisdiction filings that are available at www.sedar.com.
Information Concerning Estimates of Measured and Indicated Resources
This news release also uses the terms "measured resources" and "indicated
resources". Continental Minerals Corporation 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.
Date: 31/01/2007 08:10:44 Produced by the JSE SENS Department.
