'Je ne regrette rien' David McKay Posted: Wed, 26 Jul 2006 [miningmx.com] -- FERDI Dippenaar has no regrets having left Harmony Gold last year, where he was marketing manager for around seven years. Sceptics would say that’s because he hasn’t started mining Burnstone yet, the gold mine owned by Great Basin Gold, of which Dippenaar is CEO.
The property, situated 80km south-east of Johannesburg, has been part of South African mining’s furniture since the Nineties. First discovered by Gencor, the project was ditched but picked up again by John Handley, a geologist and former stockbroker. Hunter Dickinson, the Canadian firm, took the project and folded it into Great Basin Gold, which also owns two properties in Nevada.
Dippenaar has great hopes. “About 193 holes have been drilled and the understanding of the orebody is probably the best in South Africa. Technically, there’s no real challenge mining Burnstone. You just have to stick to your mining parameters.”
Burnstone has had its problems under Great Basin Gold. Though initial production estimates put the mine at 300,000 oz/year the figure is closer to 214,000 oz/year at full tilt. The adjustment is a function of the full time attention Dippenaar is now giving the project.
Production will be in about two to three years’ time. The current status of Burnstone is that its first phase has been approved, which will involve sinking a 3km decline. Mining starts at 250m below surface but first bulk sampling of 27,000 t will have to be completed. Total expenditure is estimated at about R1bn, of which R800m is project related over five years.
“Burnstone has a 7.2 million oz resource, of which around 2.4 million oz is categorised as reserves. About R8m is being spent improving the knowledge of the orebody,” Dippenaar says.
There’s also the chance of a South African listing. “There’s been quite a lot of interest from the local guys in Burnstone, so we’re thinking of getting a secondary listing,” says Dippenaar. JP Morgan is assisting with the listing.
“Apart from opening up the European market it will also allow Tranter [Great Basin Gold’s South African empowerment partner] to participate in the equity if it wanted to,” says Dippenaar. ____________________ If Ferdi accurate, then production by 3Q 2009 (i.e. 3 years time)
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