GBG - Great Basin Gold updates Hollister and Burnstone mineral reserves and

Release Date: 02/02/2011 17:11
Code(s): GBG
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GBG - Great Basin Gold updates Hollister and Burnstone mineral reserves and life of mine estimates and announces new term loan financing GREAT BASIN GOLD LIMITED (Incorporated in Canada and registered as an External Company in South Africa) (Registration No. 2006/021304/10) Share Code: GBG ISIN Number: CA3901241057 ("Great Basin" or "the Company") GREAT BASIN GOLD UPDATES HOLLISTER AND BURNSTONE MINERAL RESERVES AND LIFE OF MINE ESTIMATES AND ANNOUNCES NEW TERM LOAN FINANCING Highlights - Hollister updated Mineral Reserve and 2011E production guidance of approximately 110,000 recovered gold equivalent ounces (Au (eqv) oz) - Hollister forecast Life of Mine ("LOM") average production of 110,000 Au (eqv) oz over 8 years at steady state with a cash cost, inclusive of royalties of approximately US$527 per Au (eqv) oz recovered over the LOM. - Burnstone updated Mineral Reserve increased by 55% and 2011E production guidance of 110,000 to 140,000 recovered gold oz (Au oz) - Burnstone forecast LOM average production of 254,000 Au oz over 25 years at steady state with a cash cost, inclusive of royalties, of US$450 per Au oz recovered over the LOM - Final credit approval for Term Loan financing of US$60 million of which US$52 million will be used to retire senior secured notes February 2, 2011, Vancouver, BC - Great Basin Gold Ltd. ("Great Basin Gold" or the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announces increases for both its Hollister Project and Burnstone Mine Mineral Reserve and life-of mine ("LOM") estimates. The Company has also received credit committee approval for a US$60 million Term Loan financing from Credit Suisse AG, the proceeds of which will be used to repay the high cost Senior Secured Notes issued during the 2008 credit crisis. Hollister Project, Carlin Trend, Nevada Ongoing technical work at Hollister has resulted in a 13% increase, on a directly comparable basis, in the Mineral Reserves from those published in January 2009. (Capitalized terms not otherwise defined herein have the meanings set out in Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects) The Hollister project is still in the trial mining stage, however, based on production techniques tested to date, the Company hasestimated applicable call factors for mining of approximately 85% and metallurgical recoveries of approximately 92% for Au and 85% for Ag. Since the 2009 Mineral Reserve estimate, a total of 165,772 tons have been extracted at an average grade of 1.06 Au(eqv) oz/ton(36.4 g/t),delivering 176,387 Au(eqv)contained ounces. At a cut-off grade of 0.25 oz/ton (8.57 g/t) Au, the combined Proven and Probable Mineral Reserves contain an estimated net 907,000 Au(eqv) ounces, grading 0.79 oz/ton (27.02 g/t) Au and 4.75 oz/ton (163 g/t) silver (Ag) after application of the noted call factors for mining and metallurgical recoveries. Results of Hollister`s January 2011 Mineral Reserve Estimate are shown below: Reserve Cut- Tons Au
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