Monday, May 15, 2006 12:36:29 AM
Dippenaar sees 214 000 oz a year from new SA gold mine
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http://www.miningweekly.co.za/min/news/today/?show=85968
Toronto Stock Exchange-listed Great Basin Gold has announced that its South African gold project, Burnstone Gold is likely to have a life-of-mine of 14 years and produce about 214 000 oz a year when in full production.
President and CEO Ferdi Dippenaar, who was previously at South African miner Harmony Gold, indicated that the feasibility study was undertaken on the assumption of an exchange rate of R7:$1.
The feasibility study recommends flexible, mechanised materials handling and conventional narrow reef underground mining of the Burnstone deposit, using a combination of decline and vertical shaft for access.
Dippenaar said: "Management is pleased with the results of this first phase development of the Burnstone Gold project. The company intends to immediately move to the permitting stage, initiate pre-production activities.
“We are completing a financing to construct the surface facilities and the decline shaft component.
“As this project only includes a portion of the mineral resources outlined at Burnstone to date, we will continue to assess opportunities to extend the mine life."
Great Basin is a mining exploration and development company with advanced stage gold assets on the Carlin Trend in Nevada and the Witwatersrand Goldfield in South Africa.
It intends undertaking development in two phases. A 4,5-metre wide by 4,8-metre high decline will be developed, first, to enable early access to the ore body for some mining.
A confirmatory 26 000 t bulk sample will be extracted and processed. Secondly, a 7,5-metre diameter vertical shaft will be developed and commissioned.
For full production, employees and equipment will use the decline for access and the shaft will be used for hoisting ore and mine rock to surface. Full employment would entail some 2 000 people.
The project is located in the south rand area of the Witwatersrand Basin, 80 km southeast of Johannesburg.
“The proposed mine site is situated in an area of open, rolling country, traversed by major paved highways, railroads, power lines and pipelines that provide excellent infrastructure for development.
“Skilled labour, mining expertise, equipment, process facilities and development capital are all at hand to support efficient development of the project,” stated a press release.
The company's financial analysis assumes 100% ownership and no debt leverage.
Great Basin is completing its agreement with black economic-empowerment company Tranter Investments, which is to take part in the project in accordance with local regulations.
The results of the base case scenario, at a gold price of $450/oz, pre-tax and 100% equity development financing indicate a 14 year mine life, including four years of pre-production.
The mine should see annual production of 214 000 ounces of gold at full production and capital cost of $144,5 million, or R1,013-billion.
It anticipates operating costs at R256,41 a ton and cash cost of $254,42 an ounce, or R57 256 a kilogram.
The Burnstone processing plant has been designed with a nominal capacity of 125 000 t a month, and consists of conventional crushing, semi-autogenous grinding and ball milling, followed by gravity separation and carbon-in-leach treatment prior to gold refining.
Expected metallurgical recovery is 95%, with 2,2-million ounces recovered over the 14 year mine life. Measured and indicated mineral resources for the Burnstone Project, as outlined by drilling to date, are 29-million tons at a grade of 7,63 g/t, containing 7,1-million ounces of gold.
Of these, 19,8-million tons graded at 9,22 g/t are measured and 9,2-million tons at 4,20 g/t are indicated.
These mineral resources are inclusive of the mineral reserves used for the feasibility study.
The current mine plan, however, is based on a portion of the mineral resources previously known as Area 1. Progressive development of additional mineral resources is expected.
The company's prospectus and private financings announced on April 11, to raise up to $35-million by issuing shares at C$2.25 were delayed on account of finalising the feasibility study, however, both financings are scheduled to complete next week.
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http://www.miningweekly.co.za/min/news/today/?show=85968
Toronto Stock Exchange-listed Great Basin Gold has announced that its South African gold project, Burnstone Gold is likely to have a life-of-mine of 14 years and produce about 214 000 oz a year when in full production.
President and CEO Ferdi Dippenaar, who was previously at South African miner Harmony Gold, indicated that the feasibility study was undertaken on the assumption of an exchange rate of R7:$1.
The feasibility study recommends flexible, mechanised materials handling and conventional narrow reef underground mining of the Burnstone deposit, using a combination of decline and vertical shaft for access.
Dippenaar said: "Management is pleased with the results of this first phase development of the Burnstone Gold project. The company intends to immediately move to the permitting stage, initiate pre-production activities.
“We are completing a financing to construct the surface facilities and the decline shaft component.
“As this project only includes a portion of the mineral resources outlined at Burnstone to date, we will continue to assess opportunities to extend the mine life."
Great Basin is a mining exploration and development company with advanced stage gold assets on the Carlin Trend in Nevada and the Witwatersrand Goldfield in South Africa.
It intends undertaking development in two phases. A 4,5-metre wide by 4,8-metre high decline will be developed, first, to enable early access to the ore body for some mining.
A confirmatory 26 000 t bulk sample will be extracted and processed. Secondly, a 7,5-metre diameter vertical shaft will be developed and commissioned.
For full production, employees and equipment will use the decline for access and the shaft will be used for hoisting ore and mine rock to surface. Full employment would entail some 2 000 people.
The project is located in the south rand area of the Witwatersrand Basin, 80 km southeast of Johannesburg.
“The proposed mine site is situated in an area of open, rolling country, traversed by major paved highways, railroads, power lines and pipelines that provide excellent infrastructure for development.
“Skilled labour, mining expertise, equipment, process facilities and development capital are all at hand to support efficient development of the project,” stated a press release.
The company's financial analysis assumes 100% ownership and no debt leverage.
Great Basin is completing its agreement with black economic-empowerment company Tranter Investments, which is to take part in the project in accordance with local regulations.
The results of the base case scenario, at a gold price of $450/oz, pre-tax and 100% equity development financing indicate a 14 year mine life, including four years of pre-production.
The mine should see annual production of 214 000 ounces of gold at full production and capital cost of $144,5 million, or R1,013-billion.
It anticipates operating costs at R256,41 a ton and cash cost of $254,42 an ounce, or R57 256 a kilogram.
The Burnstone processing plant has been designed with a nominal capacity of 125 000 t a month, and consists of conventional crushing, semi-autogenous grinding and ball milling, followed by gravity separation and carbon-in-leach treatment prior to gold refining.
Expected metallurgical recovery is 95%, with 2,2-million ounces recovered over the 14 year mine life. Measured and indicated mineral resources for the Burnstone Project, as outlined by drilling to date, are 29-million tons at a grade of 7,63 g/t, containing 7,1-million ounces of gold.
Of these, 19,8-million tons graded at 9,22 g/t are measured and 9,2-million tons at 4,20 g/t are indicated.
These mineral resources are inclusive of the mineral reserves used for the feasibility study.
The current mine plan, however, is based on a portion of the mineral resources previously known as Area 1. Progressive development of additional mineral resources is expected.
The company's prospectus and private financings announced on April 11, to raise up to $35-million by issuing shares at C$2.25 were delayed on account of finalising the feasibility study, however, both financings are scheduled to complete next week.
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