Replies to post #316 on Great Basin Gold Ltd. (fka GBGLF)

[amarksp]

thanks for posting this OF...

The issues are interesting. Something HL failed to mention which I recollect is that Exhibit E was prepared using HL's numbers. If my recollection is accurate, then seems HL conveniently left this out...

The BLM's delay and HL's claim for 6 months more appears to have nothing to do with the contract terms. The BLM delay and the extra 6 months on NEM/GBG/HL site access may well be irrelevant and this possibility was not even contemplated. The Earn In Agreement clearly states that it expires Aug 2006, period.

But the real bottom line, as I previously stated, is that HL voluntarily decided to delay Hollister because it had other mining projects with higher IRR returns than Hollister. HL desired to use its existing manpower and equipment on its other projects, IMO. This was the result of the price of silver going from $4.70 when the Earn In Agreement was signed to over $6.00 when Hollister approval given by BLM.

HL is still delaying. Only excavating 200 feet per month is a joke. The excavation should have begun in Sept/Oct 04 at the latest and not in Dec 04, no reason HL could not build the surface facilities while starting the decline, IMO. Surface facilities were to be finished within 2 months per EA/FONSI.

EA/FONSI states decline will take 12 months to excavate and that 40 people including 28 operating/excavation personnel will be employed. HL has just 19 employees total at Hollister per their annual report comments. Where are the 40 employees if HL so committed to this project.

HL is delaying, period. HL is devoting its manpower and equipment to its other mining projects with higher returns. All the issues HL is raising are just smoke and mirrors, i.e. NEM delay/reclamation, bonding, acid rock, fresh water, etc.

Now just because I say smoke and mirrors does not imply that GBN will be successful and prevail, HL has some good legal points and some nice smoke and mirrors.

But what I am saying is if the price of silver was still at $4.70, then HL would have started work at Hollister on May 7th 2004 and had 50 employees on site by June 7th!!

HL would not have waited on NEM/bonding/reclamation,fresh water etc. issues if silver was still at $4.70 and gold at $430, it would still have underemployed people and equipment it needed to get to work, just like in Aug 2002 when this Earn In Agreement was signed.

just my opinion...