GREAT BASIN GOLD ANALYSIS
Great Basin Gold is a mining company engaged in the development and exploration of Gold properties. The company is currently in late stage development at two projects in the world’s two most well known gold producing regions, with a substantial resource base of 13 million ounces in the measured and indicated category. The Hollister project is located on the Carlin Trend in Nevada, USA and the Burnstone project, is located on the Witwatersrand Basin in South Africa. Great Basin Gold plans to become a mid-tier gold producer through a well-defined strategy of developing their near term production projects into high margin mining units while increasing reserves and resources base through focused exploration programs.
For the past four years Great Basin has focused on two advanced stage gold projects, the Hollister Property on the Carlin Trend in Nevada, USA, where underground exploration and development has been underway on a portion of the property called the Hollister Development Block (“HDB”) and also at the Burnstone Project in the Witwatersrand goldfield in South Africa. Feasibility studies have been completed on both projects, and they are in the underground access and pre-production phase. The company announced that the Burnstone Metallurgical Plant project achieved a major milestone with the first gold pour completed on October 31, 2010. Ferdi Dippenaar, President and CEO, commented: "Good progress continues to be made with the commissioning of the Burnstone Metallurgical Plant. The first gold pour is always a significant milestone and attention has now shifted to the commissioning of the CIL process and the remaining infrastructure. Operationally, the metallurgical plant commissioning has gone well with no major incidents causing significant delays."
On November 9, 2010, Vancouver, BC the company announced that trial mining in the Blanket Zone above the Main Clementine vein #18 at its
Hollister project in Nevada has encountered bonanza grades of gold and silver. The Company cautions investors and readers that we are making this announcement out of an abundance of concern over interpretation of this information and, as the information may be known locally in the region of the mine site, the Company felt obligated to make it public. Channel sampling carried out in conjunction with trial mining in the Blanket Zone has encountered the bonanza grades over a strike distance of 170 feet (57 meters). Channel samples taken every 10 feet (3 meters) gave values ranging from a low of 1.5 oz/ton (52.0 g/t) Au and 3.2 oz/ton (111.9 g/t) Ag to a high of 2,560.4 oz/ton (88,845.9 g/t) Au and 1,829.8 oz/ton (63,494.1 g/t) Ag over channel widths from 0.3 to 2 feet wide. The current stope is continuously mineralized along its 180-foot (60-meter) length. Diluted over 3.5 feet (the width of the stope development), the average sample values were 66.4 oz/ton (2,404 g/t) Au and 78.5 oz/ton (2,723.9 g/t) Ag. Muck piles have also been sampled; grabs are taken over the pile to collect as representative a sample as possible (between 10-15 lb. Are collected every 10 feet). The fully diluted value of the muck samples taken from the stope to date averages 22.3 oz/t (773.8 g/t) Au and 23.4 oz/ton (811.9 g/t) Ag.
CONCLUSION
The Company is currently focused on bringing two mines in the world’s two richest gold producing regions into production. The Hollister gold project is located on the Carlin Trend in Nevada, USA and the Burnstone gold mine is located in the Witwatersrand Basin goldfield of South Africa that is now in operation. With 13 million oz in reserve at the minimum this company will be at the top of the list of premier precious metal mining companies in the world and stock price is expected to be well over a $100 per share within 3 years considering the precious metal boom has only really just begun.
