Great Basin Gold Ltd. (fka GBGLF)

[amarksp]

Appears GBN Burnstone mine compares very favorably to GFI's planned new SA Mine projects
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http://www.miningweekly.co.za/min/news/today/?show=87105
"Two large below-current-infrastructure projects at Driefontein and Kloof gold mines would require a combined capital expenditure of R2,7-billion, Gold Fields executive vice-president South African operations Brendan Walker said at an analyst open day in Johannesburg yesterday.

Walker...reported that the Driefontein Five Shaft depth extension project would require a capital investment of R1,8-billion and the Kloof KEA depth extension project a capital investment of R847-million.

The feasibility studies for both were under review at a gold price of R100,000/kg and at break-even gold prices of R87,388/kg and R84,910/kg respectively, against a current actual gold price of some R140,000/kg.

The Driefontein project would have an internal rate of return of 12% and the Kloof project one of 14%.

The Driefontein project would provide an additional 8,2-million ounces of reserves and the Kloof project 1,8-million ounces.

The Driefontein project would extend an additional 531 m from 3 300 m - 50 level - to 3 831 m - 55 level.
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GBN Burnstone Capex = R1.0 Billion
GFI Driefontein Five Capex= R1.8 Billion
GFI Kloof KEA Capex= R847 Million

Burnstone IRR = 18.3% at $450 POG per ounce
$450POG = R101,270 per kilogram

GFI IRR = 12% & 14% @ R100,000 per kilogram vs. GBN Burnstone at 18.3% @ R101,270 per kilogram.
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If GFI comfortable investing in these 2 new projects, then GBN shareholders should be comfortable with Burnstone...
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new presentation:
http://www.greatbasingold.com/i/gbg/GBG_AMEX_Mar06.pdf

Slide 19 & 23 of interest on Hollister.
Per slide 23, appears GBN investigating doubling mine throughput.