GoodFellas Big Board Catalyst and Chart Plays

[Damnsammit]

GBG +15% and rising [more]

Operational Performance

Nevada

Preliminary production results for July and August 2012 indicate an improvement relative to the previous quarter with an average of 6,500 Au eqv oz sold per month, compared to an average of 5,000 Au eqv oz per month sold in Q2 2012. The 0.69 Au eqv oz/t average grade from trial mining for July and August 2012 also compares favorably to the 0.63 Au eqv oz/t trial mined in Q2 2012. Further improvement is expected as additional higher grade stopes from the tertiary material becomes available. The Esmeralda mill is performing as planned with recoveries of 92% Au and 48% Ag thus far for Q3 2012. Cash costs for Q3 2012 are expected to benefit from the lower milling costs now that doré has been capable of being poured on site since June 2012.

Burnstone

Ore development in July and August 2012 averaged 888 meters per month, a 50% improvement on the monthly average of 590 meters achieved in Q2 2012. The improvements to the temporary water reticulation system reported on earlier had a positive impact on ore development. The Company will be taking over the underground waste development following the termination of this contract with Grinaker Lta in August 2012, which is expected to yield an estimated cost saving of $1.2 million per month as well as improved efficiencies from development teams and trackless equipment. Five thousand and fifty (5,050) square meters was stoped during July and August 2012 with focus remaining on development until phase 1 of the permanent water reticulation system is completed by the end of September 2012. Shaft availability has improved with the completion of the spillage decline down to shaft bottom during August 2012. 180,000 tonnes at an average head grade of 1.2 g/t were processed by the plant for July and August 2012 with 4,280 ounces sold during the period. The head grade of material delivered to the plant remains impacted by the development/stoping ratio which is only expected to improve once stoping increases later on in 2012.

Strategic Review and Liquidity Challenges

The Special Committee of the Board continues to evaluate refinancing and asset sell-down alternatives and is endeavouring to work with all stakeholders to achieve an acceptable resolution of its near term liquidity challenges. A range of viable options remain possible however the Company is not yet in a position to provide any guidance as to if and when an announcement in this regard will be made.

Lou van Vuuren, interim CEO, commented: "Our ongoing delineation drilling and trial mining results continue to confirm the prospectivity of the Hollister property, and has also increased our confidence in the reported resources and reserves. With the completion in the June 2012 quarter of the Upper Zone spiral ramp as well as 4930 Level, which provides a new access level to the mine and the higher grade Clementine # 18 and 20 veins for trial mining, the focus will continue to be on better delineation of mineralization that is accessible from current underground infrastructure. As underground development continues, there will be further opportunities to drill-test for extensions to a number of high grade zones that have been identified from the evaluation of the Butte bounding-fault structure as well as Hatter Graben system. Operationally we are seeing an improvement with more expected as the Nevada operations return to planned production levels and Burnstone completing the remaining critical infrastructure. The Company continues to receive considerable interest in its projects from qualified financiers and industry players and with the information in this news release now having been disseminated we will be in a position to accelerate our strategic process."

The mineral reserve estimates were completed by Martin Cooper, MGSSA, and the mineral resource estimates by Freddie de Bruin and John Murgatroyd, Pr.Sci.Nat., all of Deswik Mining and Resource Consultants, under the supervision of Phil Bentley, Pr.Sci.Nat., Great Basin Gold's Vice President: Geology & Exploration and Dana Roets, FSAIMM, Great Basin Gold's Chief Operating Officer, both Qualified Persons as defined by Canadian National Instrument 43-101 (Disclosure Standards for Mineral Projects), who have reviewed and approved the technical information in this news release.

Big gap from the sell off in the .35-.45 range that should be filling soon IMO - Someone good with charts that wants to post? I've been accumulating for two weeks now. This is about to payoff big for me IMO!

Read more:
http://www.nasdaq.com/article/great-basin-gold-updates-hollister-mineral-resource-and-reserve-estimates-and-operating-results-for-hollister-and-burnstone-20120904-01520