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GBG - Great Basin Gold - Operational and exploration update
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 Gold" or "the Company")
GREAT BASIN GOLD PROVIDES OPERATIONAL AND EXPLORATION UPDATE
March 7, 2012, Vancouver, BC - Great Basin Gold Ltd. ("Great Basin Gold" or
the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) provides updates on
progress at operations and exploration and drilling results for its Hollister
Project and Burnstone Mine.
SUMMARY
Hollister operations and exploration results continue to deliver
Hollister 2012 Production Targets - 90,000 to 100,000 Au eqv oz at a cash cost
of US$700 - 750 per Au eqv oz (1)
Significant progress on Burnstone ramp up since the end of December 2011
Water issues resolved
Reef development ends up 19% to 38
Reef development rates achieving planned levels of 40 meters per reef
development end per month
Square meters available for stoping up 71% to 12,356 sq meters with an
additional 6,000 sq meters partially developed
Productivity underground improving through de-bottlenecking and infrastructure
development, and
Mine expected to be cash flow positive (after capital investment) by early Q3
2012
Burnstone 2012 Production Targets - 90,000 to 100,000 Au oz at a cash cost of
US$900 - US$1,000 per oz
Ferdi Dippenaar, Great Basin Gold President and CEO, commented: "With
improvements, both made and planned, to underground infrastructure at
Burnstone, the build-up is proceeding well to reach our milestone of 1,500 ore
development meters per month in Q2 2012 and our interim production milestone
of 10,000 oz per month in early Q3 2012. This will lay the foundation for the
project to achieve its potential optimal production rates of 220,000 - 250,000
Au oz per annum, and including Hollister, for the Company to achieve 320,000 -
350,000 Au eqv oz in total production per annum.
The exploration results for Burnstone, and even more so Hollister, underscore
the highly prospective nature of the two ore bodies. Although exploration
expenditure was cut back in 2011 to ensure that cash flow was directed at our
Burnstone Mine development, more exploration is planned at Hollister, and
later also at Esmeralda, as cash resources become available.
We understand the faulting and flooding at Burnstone and have plans in place
to deal with them, including temporary water handling, which should see a
significant improvement to performance in 2012."
(1) Gold equivalent ("Au egv") calculations use US$1,650/oz for Au and
US$30/oz for Ag.
1 Gold equivalent ("Au eqv") calculations use US$1,650/oz for Au and US$30/oz
for Ag
PROGRESS AT OPERATIONS
NEVADA OPERATIONS
The Nevada operations continue to deliver results from trial mining activities
in line with the previously announced production targets. Additional emphasis
on ore development is improving mining flexibility with the availability of
additional stopes allowing for improved grade blending of extracted ore and
more consistent performance on a monthly basis. The completion of the Upper-
Zone ramp now allows for easy access for delineation drilling, with
information obtained improving mine planning and scheduling. Pouring of dore
at the Esmeralda mill is still impacted by the underperformance of the acid
wash and carbon regeneration circuit. The improvements to the circuit, which
will allow for all recovered metal to be poured on site again, are expected to
be completed by April 2012. In the interim, an estimated 20,000 Au eqv oz
contained in carbon available at the end of February 2012 will be processed at
Rand Refinery during March 2012. The good operational performance from the
Nevada Operations is expected to continue in 2012, with production of 90,000
to 100,000 Au eqv oz at a cash cost of US$700 - 750 per Au eqv oz from trial
mining.
South African operations
The Burnstone Mine continues to make progress in early 2012 towards resolving
certain issues that have restrained the planned production build-up.
Underground flooding experienced in the latter part of 2011 and early 2012 had
an impact on the advancement of development. This issue has been resolved
following the upgrading of the temporary water handling system. Additional
pumps and back-up pump columns are providing additional capacity to not only
reticulate the water, but also to transport service water to all working ends,
which will improve rates of development and stoping. Reef development ends
have increased from 32 in December 2011 to 38 by the end of February 2012. As
the remaining 12 temporarily flooded ore development ends become available
during the quarter, the mine plans to meet its first development milestone of
1,500 ore development meters per month in Q2 2012, allowing the mine to reach
its first production milestone of 22,000 sq meters of stoping and a production
rate in excess of 10,000 oz per month in early Q3 2012. To achieve these
rates, the mine will need a minimum of 38 ore development ends and each
development end must advance on average by approximately 40 meters a month. By
the end of February 2012, ore development rates in excess of 38 meters per end
per month were being achieved.
In order to alleviate congestion and to prepare for the planned increase in
blasted ore tonnes as development rates increase, removing blasted material
from underground received preferential attention during February 2012.
Drilling of stopes, however, also continued during this period which should
allow for an increased rate of production build up from March 2012. Over
12,356 sq meters (up from 7,205 in December 2011) were available for stoping
at the end of February 2012, with just over 6,000 additional sq meters under
development. Results from the long hole stoping mining method remain positive
with stoping widths of approximately 80 cm being achieved on a consistent
basis. Improved dilution control on ore development is positively impacting on
the feed grade of material delivered to the mill.
The continuing development of stoping blocks will open up additional
development ends at increasing rates. This will allow ore development to
increase to an average of 2,500 meters per month from approximately 63
development ends by Q4 2012. This additional development is expected to
provide additional mining flexibility with an estimated eight months of
mineable reserves being available by the end of 2012, and further enhance the
production build up during 2013 and 2014 to steady state production. The
Company is also focusing on infrastructure improvements to enhance capacity
and productivity of ore handling underground, which includes a previously
completed automated ore loading system, an ore conveyer belt system from C
Block, a decline ramp down to the shaft bottom to allow for effective spillage
clean-up and the completion of the first of three permanent clear water and
settler dams by July 2012.
Following a review of the current production levels and progress of
underground development and infrastructure, the Company expects Burnstone to
produce between 90,000 to 100,000 Au oz at a cash cost of US$900 - US$1,000
per oz for the 2012 fiscal year. These cash cost targets represent a marked
improvement on the US$1,737 per oz achieved in 2011. As planned, the high
ratio of development to stoping ore will continue to impact on the head grade
delivered to the mill and cash costs for the balance of 2012.
All equipment required for the production build up is in place. All of our
mining teams are currently in place and are undergoing intensive refresher
team training to enable them to plan, assess and adjust to the constantly
increasing rate of production.
The expected production range also contemplates the previously mentioned
upgrade and completion of underground and shaft infrastructure. The Company
expects that achieving the planned production build-up will allow Burnstone to
turn cash flow positive after capital investment (using a gold price of
US$1,650/oz and a US$/ZAR exchange rate of 7.5) during Q3 2012.
EXPLORATION UPDATE
At Hollister, highlights include drilling results from the SE Gwenivere
target, Upper Level drilling, and Upper Level mine infrastructure plans, as
well as advances in the geothermal system mapping and planned drilling for
2012.
At Burnstone drilling strategies are improving the modeling of structures
that, in certain areas, displace the Kimberley Reef horizon. Channel sampling
continues to underpin positive grade and channel width trends in the mine
development.
HOLLISTER
Underground Drilling and Exploration
Underground exploration and stope delineation drilling has continued during
the latter half of 2011 and in January 2012. In total, 89 boreholes for 26,304
feet (7,971 meters) have been completed. These comprised 29 exploration and
cover boreholes testing Clementine and SE Gwenivere targets (totaling 13,114
feet or 3,974 meters), 28 Upper Level (formally Blanket Zone)
exploration/evaluation holes (totaling 6,908 feet or 2,093 meters), and 32
stope delineation holes (totaling 6,282 feet or 1,904 meters). After reduction
to one rig following Q2 2011, the operation has gradually built up to four
underground rigs operating: one for epithermal vein/stope delineation, two
small man portables for Upper Level evaluation fan drilling, and a larger LM-
90 rig commissioned specifically for the current drilling program under the
Hollister open-pit excavations. Summary statistics are shown in Table 1.
Table 1: Hollister summary drilling statistics over the period July 2011 -
January 2012
Intersections Ave Width Ave Au
No of No ft opt
DH
UG Exploration & 29 92 1.7 0.953
Cover
UG Upper Level 28 101 3.2 0.414
evaluation
UG Stope 32 134 1.2 0.639
delineation
Total 89 327
Table 1: (CONTINUED) Hollister summary drilling statistics over the period
July 2011 - January 2012
Ave Au Ave Ag Ave Ag Max Au Max Width
No g/t opt g/t opt ft
of
DH
UG Exploration 29 32.62 1.5 51.8 22.170 9.1
& Cover
UG Upper Level 28 14.175 1.3 45.3 7.119 17.5
evaluation
UG Stope 32 21.892 3.7 128.0 7.068 5.0
delineation
Total 89
Note: (Table 1) Average grades to date of all intersections are around 0.4 opt
Au (14.17 g/t Au) over 3.2 feet (1 meter) width.
UPPER LEVEL EXPLORATION
A ramp and an alimak raise accessing the Upper Level zones (previously Blanket
Zone) of mineralization around the Tertiary - Ordovician unconformity has been
completed to 5278 Level, from which I drifting has progressed towards high
grade (+1 opt Au) shells formed above the Clementine (16-20) and Gwenivere (8-
10) vein systems. This infrastructure has been vital in enabling the
initiation of short fan drilling by recently commissioned Bazooka and SJ 252
drilling rigs. Highlights from the Upper Level exploration and evaluation
drilling are shown in Table 2 (below). This phase of drilling is providing the
basis for targeting trial stoping areas, and it is expected that there will be
a commensurate increase in Indicated resources resulting from this work.
Table 2: Upper Level drill highlights
Upper Level Vein Drilled Est. True
evaluation Drill Hole Intersection Thickness Thickness
ID (ft) (ft) (ft)
Vein Vein ID From To
System
Upper JVA11-006 26.0 26.7 0.7 0.7
Levels
Upper JVA11-006 33.1 33.7 0.6 0.6
Levels
Upper VN19 SJBZ-004 377.0 379.5 2.5 2.5
Levels
Upper JVA11-006 81.2 83.0 1.8 1.8
Levels
Upper SJBZ-006 345.5 348.0 2.5 2.5
Levels
Upper VN19 SJBZ-004 370.2 370.8 0.6 0.6
Levels
Upper HDB11-560 552.2 555.1 4.3 4.3
Levels
Upper VN18 HDB11-556 446.5 449.0 2.5 2.0
Levels
Upper VN13 HSD11-407 555.0 557.5 2.5 2.5
Levels
Upper VN6 SJBZ-008 387.5 390.0 2.5 2.5
Levels
Upper VN17 BAZ-007 3.0 11.0 8.0 8.0
Levels
Upper VN16 BAZ-007 25.0 27.5 2.5 2.5
Levels
Upper VN99 BAZ-013 57.0 62.0 5.0 5.0
Levels
Upper VN15 HSD11-391 624.0 629.0 5.0 4.8
Levels
Upper VN19 SJBZ-004 372.3 373.8 1.5 1.5
Levels
Upper VN18 BAZ-015 24.7 26.3 1.6 1.6
Levels
Upper SJBZ-006 433.0 433.9 0.9 0.9
Levels
Upper VN19 BAZ-009 66.7 67.7 1.1 1.1
Levels
Upper VN99 HSD11-413 555.5 558.0 2.5 2.5
Levels
Upper VN17 HSD11-388 606.5 611.5 5.0 5.0
Levels
Upper VN17 BAZ-011 0.0 6.0 6.0 6.0
Levels
Upper VN14 BAZ-007 58.0 60.5 2.5 2.5
Levels
Upper VN99 SJBZ-004 7.0 9.5 2.5 2.5
Levels
Upper HDB11-560 429.5 432.0 2.5 2.5
Levels
Upper VN15/VN16 BAZ-011 15.5 33.0 17.5 17.5
Zone
Upper VN16 HSD11-388 586.3 601.5 15.2 15.2
Zone
Upper VN18/VN19 BAZ-010 51.0 65.0 14.0 14.0
Zone
Upper VN16/VN17 BAZ-012 0.0 12.5 12.5 12.5
Zone
Upper VN17 BAZ-008 2.5 12.5 10.0 10.0
Zone
Table 2: (CONTINUED) Upper Level drill highlights
Upper Level Analytical Results
evaluation Drill Hole
ID
Vein Vein ID Au Au Ag (opt) Ag (g/t)
System (opt) (g/t)
Upper JVA11-006 7.119 244.08 3.3 111
Levels
Upper JVA11-006 3.712 127.27 2.8 97
Levels
Upper VN19 SJBZ-004 2.939 100.77 2.9 101
Levels
Upper JVA11-006 2.336 80.09 4.8 163
Levels
Upper SJBZ-006 1.863 63.87 0.3 10
Levels
Upper VN19 SJBZ-004 1.822 62.47 5.2 178
Levels
Upper HDB11-560 1.513 51.88 5.0 172
Levels
Upper VN18 HDB11-556 1.507 51.67 0.5 17
Levels
Upper VN13 HSD11-407 1.093 37.47 0.2 7
Levels
Upper VN6 SJBZ-008 0.974 33.40 <0.1 <2
Levels
Upper VN17 BAZ-007 0.730 25.04 5.3 182
Levels
Upper VN16 BAZ-007 0.717 24.58 0.8 29
Levels
Upper VN99 BAZ-013 0.695 23.83 0.6 19.5
Levels
Upper VN15 HSD11-391 0.686 23.52 0.1 5
Levels
Upper VN19 SJBZ-004 0.685 23.50 1.4 50
Levels
Upper VN18 BAZ-015 0.593 20.33 1.8 60
Levels
Upper SJBZ-006 0.519 17.79 0.2 8
Levels
Upper VN19 BAZ-009 0.431 14.78 0.4 15
Levels
Upper VN99 HSD11-413 0.379 12.99 0.1 3
Levels
Upper VN17 HSD11-388 0.377 12.93 0.1 3
Levels
Upper VN17 BAZ-011 0.334 11.46 2.8 97
Levels
Upper VN14 BAZ-007 0.323 11.07 1 35
Levels
Upper VN99 SJBZ-004 0.314 10.77 <0.1 <2
Levels
Upper HDB11-560 0.309 10.59 0.1 4
Levels
Upper VN15/VN16 BAZ-011 0.161 5.54 1.1 39
Zone
Upper VN16 HSD11-388 0.204 6.99 0.4 12
Zone
Upper VN18/VN19 BAZ-010 0.117 4.01 0.4 14
Zone
Upper VN16/VN17 BAZ-012 0.178 6.10 0.7 23
Zone
Upper VN17 BAZ-008 0.175 5.99 4.8 165
Zone
OTHER UG EXPLORATION DRILLING
During the period under review, 29 boreholes (13,114 feet or 3,974 meters)
were completed, providing more infill coverage on the Clementine system, as
well as exploring and providing more definition on the SE Gwenivere target.
Highlight intersections
(>0.3 opt/10 g/t Au) are given below. The SE Gwenivere veins continue to give
exciting high grade intersections over narrow widths, which do add complexity
to the vein modeling.
Table 3: Highlight intersections (> 0.3 opt / 10 g/t Au) for underground
exploration and cover drilling
Veins Drill Hole Vein Drilled Est. True
ID Intersection Thickness Thickness
(ft) (ft) (ft)
Vein Vein ID From To
System
Clementine VN20/21 HDB11-542 379.2 379.8 0.6 0.6
Clementine VN18 HDB11-538 221.2 222 0.8 0.8
Clementine VN18 HDB11-543 260.3 261.1 0.8 0.8
Clementine VN20/21 HDB11-542 398.8 399.4 0.6 0.6
Clementine VN20 HDB11-524 391.7 392.5 0.8 0.7
Clementine VN20 HDB11-538 351.6 352.9 1.3 1.3
Clementine VN21 HDB11-542 431.3 432.2 0.9 0.9
Clementine VN18 HDB11-536 265.9 266.4 0.5 0.4
Clementine VN21 HDB11-540 487.4 491.4 2 1.7
Clementine VN20/21 HDB11-543 417.1 418.3 1.2 1.1
Clementine VN18 HDB11-533 315.7 316.2 0.5 0.4
Clementine VN20 HDB11-538 360.7 361.2 0.5 0.5
Clementine VN13 HDB11-563 428.0 433.0 5.0 4.6
Gwenivere VN11 HDB11-557 197.0 199.5 2.5 1.6
SE VN57 HDB11-503 349.1 349.5 0.4 0.4
Gwenivere
SE VN99 HDB11-503 121.1 121.8 0.7 0.7
Gwenivere
SE VN58 HDB11-550 260.1 260.6 0.5 0.5
Gwenivere
SE VN58 HDB11-547 241.1 242.5 1.4 1.4
Gwenivere
SE VN58 HDB11-552 247.5 248.0 0.5 0.5
Gwenivere
SE VN63 HDB11-548 120.5 123.0 2.5 2.3
Gwenivere
SE VN58 HDB11-551 291.0 292.0 1.0 0.9
Gwenivere
SE VN52 HDB11-511 249.3 250 0.7 0.5
Gwenivere
SE VN60 HDB11-547 189.4 190.0 0.6 0.6
Gwenivere
SE VN58 HDB11-546 247.7 248.2 0.5 0.5
Gwenivere
SE VN59 HDB11-494 37 37.5 0.5 0.4
Gwenivere
SE VN60 HDB11-503 200.7 201.6 0.9 0.9
Gwenivere
SE VN58 HDB11-552 249.6 250.1 0.5 0.5
Gwenivere
SE VN60 HDB11-545 240.5 241 0.5 0.5
Gwenivere
SE VN59 HDB11-551 255.2 255.8 0.6 0.6
Gwenivere
SE VN59 HDB11-552 236.5 237.6 1.1 1.1
Gwenivere
SE VN57 HDB11-547 263.3 266.8 3.5 3.5
Gwenivere
SE VN99 HDB11-503 85.5 88 2.5 2.5
Gwenivere
SE VN58 HDB11-502 304.3 306.5 2.2 2.2
Gwenivere
SE VN51 HDB11-511 286 287 1 0.8
Gwenivere
SE VN61 HDB11-547 146.5 148.0 2.5 2.5
Gwenivere
SE VN59 HDB11-550 241.2 241.7 0.5 0.5
Gwenivere
SE VN59 HDB11-492 23.0 33.0 10.0 8.5
Gwenivere
SE VN58 HDB11-502 298.5 301.8 3.3 3.3
Gwenivere
Table 3: (CONTINUED) Highlight intersections (> 0.3 opt / 10 g/t Au) for
underground exploration and cover drilling
Veins Drill Hole Analytical Results
ID
Vein Vein ID Au (opt) Au Ag Ag (g/t)
System (g/t) (opt)
Clementine VN20/21 HDB11-542 4.091 140.26 6.7 231
Clementine VN18 HDB11-538 3.503 120.1 19.6 672
Clementine VN18 HDB11-543 2.170 74.53 3.8 130
Clementine VN20/21 HDB11-542 1.478 50.67 0.4 14
Clementine VN20 HDB11-524 1.065 36.51 1.1 38
Clementine VN20 HDB11-538 0.899 30.81 1.0 33
Clementine VN21 HDB11-542 0.424 14.54 11.1 382
Clementine VN18 HDB11-536 0.417 14.31 0.4 14
Clementine VN21 HDB11-540 0.369 12.64 0.1 2
Clementine VN20/21 HDB11-543 0.337 11.58 1.8 63
Clementine VN18 HDB11-533 0.325 11.14 0.6 20
Clementine VN20 HDB11-538 0.312 10.69 0.7 25
Clementine VN13 HDB11-563 0.304 10.42 0.0 1
Gwenivere VN11 HDB11-557 0.305 10.46 0.4 15
SE VN57 HDB11-503 22.170 760.25 6.9 236
Gwenivere
SE VN99 HDB11-503 9.504 325.85 7.0 239
Gwenivere
SE VN58 HDB11-550 7.913 271.31 2.0 68
Gwenivere
SE VN58 HDB11-547 6.546 224.43 3.5 120
Gwenivere
SE VN58 HDB11-552 2.796 95.86 1.3 44
Gwenivere
SE VN63 HDB11-548 1.324 45.39 0.4 13
Gwenivere
SE VN58 HDB11-551 1.270 43.54 3.1 105
Gwenivere
SE VN52 HDB11-511 1.243 42.61 4.3 149
Gwenivere
SE VN60 HDB11-547 1.219 41.79 5.6 191
Gwenivere
SE VN58 HDB11-546 1.103 37.83 1.4 48
Gwenivere
SE VN59 HDB11-494 0.970 33.26 0.9 31
Gwenivere
SE VN60 HDB11-503 0.865 29.66 2.4 84
Gwenivere
SE VN58 HDB11-552 0.787 26.98 0.8 28
Gwenivere
SE VN60 HDB11-545 0.783 26.85 0.3 11
Gwenivere
SE VN59 HDB11-551 0.594 20.37 1.1 37
Gwenivere
SE VN59 HDB11-552 0.529 18.14 0.8 26
Gwenivere
SE VN57 HDB11-547 0.496 17.01 0.2 8
Gwenivere
SE VN99 HDB11-503 0.472 16.18 0.5 16
Gwenivere
SE VN58 HDB11-502 0.393 13.48 0.3 9
Gwenivere
SE VN51 HDB11-511 0.385 13.19 1.4 48
Gwenivere
SE VN61 HDB11-547 0.344 11.79 0.3 11
Gwenivere
SE VN59 HDB11-550 0.318 10.89 1.7 58
Gwenivere
SE VN59 HDB11-492 0.307 10.52 0.4 12
Gwenivere
SE VN58 HDB11-502 0.293 10.06 0.4 13
Gwenivere
STOPE DELINEATION
Stope delineation on the Gwenivere and Clementine vein systems continued, and
a total of 32 boreholes have realized a further 134 vein intersections.
Highlight intersections (>0.7 opt/25 g/t Au) are given below:
Table 4: Highlight intersections (> 0.7 opt / 25 g/t Au) for stope delineation
drilling
Veins Drill Hole Vein Drilled Est. True
ID Intersection Thickness Thickness
(ft) (ft) (ft)
Vein Vein ID From To
System
Clementine VN15 HSD11-418 7.0 12.0 5.0 5.0
Clementine VN16 HSD12-421 44.8 45.6 0.8 0.8
Clementine VN17 HSD12-422 50.3 51.0 0.7 0.7
Clementine VN18 HSD12-421 128.8 131.3 2.5 2.5
Gwenivere VN2 HSD11-386 31.4 31.9 0.5 0.5
Gwenivere VN8 HSD11-392 406.7 407.3 0.6 0.6
Gwenivere VN3 HSD11-407 78.4 78.9 0.5 0.5
Gwenivere VN3 HSD11-388 58.2 58.7 0.5 0.5
Gwenivere VN2 HSD11-392 35.7 36.2 0.5 0.5
Gwenivere VN3 HSD11-406 74.9 75.6 0.7 0.7
Gwenivere VN9 HSD11-413 492.4 493.2 0.8 0.8
Gwenivere VN6 HSD11-385 190.0 190.5 0.5 0.5
Gwenivere VN8 HSD11-406 326.6 327.4 0.8 0.8
Gwenivere VN10 HSD11-409 363.9 364.5 0.6 0.6
Gwenivere VN7 HSD11-402 392.5 395.0 2.5 2.4
Gwenivere VN3 HSD11-385 65.7 66.5 0.8 0.7
Gwenivere VN7/VN8 HSD11-383 115.5 116.2 0.7 0.8
Gwenivere VN2 HSD11-385 32.8 33.3 0.5 0.5
Gwenivere VN3 HSD11-386 62.4 63.2 0.8 0.8
Gwenivere VN10 HSD11-391 345.1 347.0 1.9 1.8
Gwenivere VN2 HSD11-399 34.5 35.2 0.7 0.7
Gwenivere VN2 HSD11-391 33.6 34.1 0.5 0.5
Gwenivere VN2 HSD11-405 32.1 32.6 0.5 0.5
Gwenivere VN2 HSD11-404 47.3 48.2 0.9 0.9
Gwenivere VN8 HSD11-388 265.3 265.8 0.5 0.5
Gwenivere VN6 HSD11-394 171.5 172.0 0.5 0.4
Gwenivere VN3 HSD11-404 62.7 64.1 1.4 1.4
Gwenivere VN3 HSD11-394 63.6 64.1 0.7 0.6
Table 4: (CONTINUED) Highlight intersections (> 0.7 opt / 25 g/t Au) for
stope delineation drilling
Veins Drill Hole Analytical Results
ID
Vein Vein ID Au (opt) Au Ag Ag (g/t)
System (g/t) (opt)
Clementine VN15 HSD11-418 9.460 294.03 0.0 0
Clementine VN16 HSD12-421 2.941 100.83 1.5 51
Clementine VN17 HSD12-422 1.495 51.27 0.2 8
Clementine VN18 HSD12-421 0.836 28.66 3.3 113
Gwenivere VN2 HSD11-386 7.068 242.35 4.9 170
Gwenivere VN8 HSD11-392 6.858 235.13 14.3 490
Gwenivere VN3 HSD11-407 5.520 189.26 23.0 788
Gwenivere VN3 HSD11-388 4.781 163.92 19.2 661
Gwenivere VN2 HSD11-392 3.947 135.32 4.6 157
Gwenivere VN3 HSD11-406 3.007 103.10 10.7 367
Gwenivere VN9 HSD11-413 2.193 75.19 6.8 232
Gwenivere VN6 HSD11-385 1.713 58.73 39.1 1340
Gwenivere VN8 HSD11-406 1.606 55.06 10.9 375
Gwenivere VN10 HSD11-409 1.575 54.00 12.6 433
Gwenivere VN7 HSD11-402 1.485 50.93 0.7 25
Gwenivere VN3 HSD11-385 1.458 49.99 4.0 136
Gwenivere VN7/VN8 HSD11-383 1.091 37.41 9.9 341
Gwenivere VN2 HSD11-385 1.003 34.39 6.6 226
Gwenivere VN3 HSD11-386 0.914 31.34 3.2 108
Gwenivere VN10 HSD11-391 0.900 30.86 0.3 11
Gwenivere VN2 HSD11-399 0.894 30.65 5.7 194
Gwenivere VN2 HSD11-391 0.868 29.76 4.4 149
Gwenivere VN2 HSD11-405 0.788 27.03 8.9 304
Gwenivere VN2 HSD11-404 0.776 26.61 4.0 137
Gwenivere VN8 HSD11-388 0.770 26.40 20.9 718
Gwenivere VN6 HSD11-394 0.758 25.99 0.4 15
Gwenivere VN3 HSD11-404 0.755 25.90 6.6 226
Gwenivere VN3 HSD11-394 0.741 25.41 0.6 19
SURFACE EXPLORATION
A phase of detailed surface mapping was completed during the summer field
season, and has now been integrated with the sub-regional and minesite scale
collation and interpretation of airborne magnetic, ground CSAMT (high
resolution resistivity) and gravity data. The detailed surface work is
providing significant support to the CSAMT interpretations (correlation of
high resistivity spikes with volcanic vents/geyserites and hydrothermal
breccias zones), as well as providing clear evidence for the western extension
of Gwenivere/Clementine system, supported by volcanic features at surface.
Currently 15 significant vent areas, have been identified which indicates an
ideal environment for mineral formation/deposition.
Drill programs planned for the 2012 field season have been refined to test
numerous features detailed by the geological synopsis. The Hatter Graben area
will be drilled to a resource classification should adequate funds be
available, and the Butte East and South Velvet targets which are supported by
the mapping and CSAMT interpretations. CSAMT high resolution resistivity data
has been integrated with the surface mapping, plus empirical borehole data,
and a number of new vein system targets are emerging from this work.
MINERAL RESOURCES
The 2011 Mineral resource update for Hollister has been delayed due to QAQC
issues with Ag analyses over the period from July 2010 to June 2011. Pulps
have been check assayed and certain changes have been made with respect to the
preparation and acid digestion procedures for the assays. It is anticipated
that the resource estimate will be completed before the end of Q1 2012 and
made available during Q2 2012. In the meantime, a very rigorous Indicator
Kriging model has been applied for testing and forecasting trial mining
tonnages and grades.
BURNSTONE
UNDERGROUND AND SURFACE EVALUATION
Infill drilling from surface is being undertaken to tighten up on the
evaluation and structural geometry of certain mining blocks. Each drill
station is providing four "umbrella" intersections around a vertical "mother
hole", and Kimberley Reef intersections approximately 100 meters apart. Since
the discovery of Graben faulting in the B2 area underground in January 2011,
45 surface boreholes have been completed. Table 5 shows summary surface
drilling statistics and Table 6 Kimberley Reef intersections from the infill
surface drilling program.
Table 5: Summary surface infill drilling statistics - Kimberley Reef
Grade Channel Cmg/t
Au g/t Width
cm
Mean 6.45 51 328
Minimum 0.00 0 0
Maximum 27.70 216 n/a
Count 45.0 45 45
Underground evaluation is principally conducted and effected by channel
sampling of exposed sidewalls of development drives and stope panels.
Horizontal or shallow dipping cover drilling is undertaken for development
control. The summary gold grade (g/t), channel width (cw) and gold content
(cmg/t) statistics for the various mining blocks up to the end of January 2012
are shown below in Table 6. To date, nearly 18,000 channel samples have been
taken.
Table 6: Summary Channel Sample results to end January 2012
Channel Planned Channel Planned Channel Planned
BLOCK Grade Grade Reef Reef Content Content
Au g/t Au g/t width width Cmg/t Cmg/t
CW cm CW cm
B2 8.05 11.87 58 54 464 641
B3 3.20 3.19 96 102 306 325
C3 15.45 12.56 38 30 581 377
C Upper 14.61 13.30 49 43 720 572
N = 7,829
Weighted 6.91 76 525
Av
These results are in-line with or better than mine development expectations.
The Life-of-Mine plan indicates an average channel width of 68 cm compared to
the 45 cm reported in the Feasibility Study.
STRUCTURAL BREAKS
The opening up of Kimberley Reef exposures with the underground mine
development has provided a major increase in evaluation data, namely through
channel sampling and mapping. The previous phases of surface drilling leading
up to the feasibility study and subsequent mine development, because of their
vertical orientation, missed intersecting numerous post - mineral (i.e. after
formation of the Kimberley Reef) faults. Certain undetected structures,
including Graben structure in the B2 mine block area with an 80 meter
movement, have seriously disrupted the mine development momentum. Preliminary
investigations into conducting a 3D seismic survey have been undertaken, which
will only be completed within a 15 to 18 month period.
In order to better develop the structural model of the mine, orientation
studies have been initiated testing Downhole Radar and a Magneto-Telluric
ground IP system. These geophysical methods may provide more timely and
ongoing cost effective "mapping tools" so as to further mitigate structural
discontinuities of the Kimberley Reef.
OTHER MATTERS
The Company has received notification from Gold Fields Limited ("Gold Fields")
that it intends to seek rescission of an agreement under which Gold Fields
cancelled a 2% net smelter royalty over a majority of Area 1 of the Burnstone
mine. Under that transaction Gold Fields cancelled the royalty for
consideration of ZAR 80 million ($11 million) and on the condition that Gold
Fields should receive certain Mining Charter score card credits from the South
African government. As Gold Fields has not received these credits, the
Company and Gold Fields are seeking a mutually acceptable outcome and
management does not expect this issue to have an impact on the Company`s near
term cashflow, development or production targets set in this release.
Technical information herein has been reviewed and approved by Phil Bentley,
Pr.Sci.Nat., Great Basin Gold`s Vice President: Geology & Exploration. Mr
Bentley is a Qualified Person as defined by Canadian Securities Regulations in
National Instrument 43-101.
Ferdi Dippenaar
President and CEO
For additional details on Great Basin Gold Ltd. and its gold properties,
please visit the Company`s website at www.grtbasin.com or contact Investor
Services:
Tsholo Serunye in South Africa
27 (0)11 301 1800
Michael Curlook in North America
1 888 633 9332
Barbara Cano at Breakstone Group in the USA
(646) 452-2334
Samples collected from the Hollister Project are delivered to Pinnacle Assay
Labs (Lovelock, Nevada) and / or Inspectorate America Corporation
(Inspectorate) in Sparks, Nevada. Vein samples are analyzed by standard fire
assay procedures. For standard fire assay, vein sample preparation consists
of drying and jaw-crushing the entire sample to 90% passing 10-mesh, taking a
300 g sub-sample using a Jones splitter, and then pulverizing the 300 g sub-
sample to 90% passing 150-mesh using a large capacity ring and puck
pulverizer. A 30 g charge is fire assayed. All metal determinations are by
gravimetric finish. Laboratory Quality Assurance/Quality Control (QA/QC) is
monitored using coarse reject blanks and assay standards, duplicate fire
assays, and Inspectorate`s internal standards and blanks. Coarse blanks
(barren rhyolite or landscape marble) and assay standards are inserted into
the sample sequence as blind samples prior to submitting the samples to the
laboratory. Inspectorate also inserts assay standards and blanks into the
sample stream. QA/QC results are within acceptable limits
Samples collected from the Burnstone Mine are delivered to ALS Chemex in
Johannesburg, South Africa. Borehole core and channel samples of Kimberley
Reef are analyzed by standard fire assay procedures. For standard fire assay,
vein sample preparation consists of drying and jaw-crushing the entire sample
to 70% passing 10-mesh (2mm), taking a 400 g sub-sample using a Jones
splitter, and then pulverizing the 400 g sub-sample to 90% passing 150-mesh
using a large capacity ring and puck pulverizer. Three 50 g charges are fire
assayed. All metal determinations are by gravimetric finish. Laboratory
Quality Assurance/Quality Control (QA/QC) is monitored using coarse reject
blanks and assay standards, duplicate fire assays, and ALS Chemex internal
standards and blanks. Coarse blanks (barren basalt or quartzite) and assay
standards are inserted into the sample sequence as blind samples prior to
submitting the samples to the laboratory. ALS Chemex also inserts assay
standards and blanks into the sample stream. QA/QC results are within
acceptable limits
This document contains "forward-looking statements" that were based on Great
Basin Gold`s expectations, estimates and projections as of the dates as of
which those statements were made. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as "outlook",
"anticipate", "project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may cause the
Company`s actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such forward-looking
statements. These include but are not limited to:
- uncertainties and costs related to the Company`s exploration and development
activities, such as those associated with determining the extent of mineral
resources or reserves which exist on a property;
- uncertainties related to feasibility studies that provide estimates of
expected or anticipated costs, expenditures and economic returns from a mining
project; uncertainties related to expected production rates, timing of
production and the cash and total costs of production and milling;
- uncertainties related to the ability to obtain necessary licenses, permits,
electricity, surface rights and title for development projects;
- operating and technical difficulties in connection with mining development
activities;
- uncertainties related to the accuracy of our mineral reserve and mineral
resource estimates and our estimates of future production and future cash and
total costs of production, and the geotechnical or hydrogeological nature of
ore deposits, and diminishing quantities or grades of mineral reserves;
- uncertainties related to unexpected political, judicial or regulatory
proceedings;
- changes in, and the effects of, the laws, regulations and government
policies affecting our mining operations, particularly laws, regulations and
policies relating to
- mine expansions, environmental protection and associated compliance costs
arising from exploration, mine development, mine operations and mine closures;
- expected effective future tax rates in jurisdictions in which our operations
are located;
- the protection of the health and safety of mine workers; and
- mineral rights ownership in countries where our mineral deposits are
located, including the effect of the Mineral and Petroleum Resources
Development Act (South Africa);
- changes in general economic conditions, the financial markets and in the
demand and market price for gold, silver and other minerals and commodities,
such as diesel fuel, coal, petroleum coke, steel, concrete, electricity and
other forms of energy, mining equipment, and fluctuations in exchange rates,
particularly with respect to the value of the U.S. dollar, Canadian dollar and
South African rand;
- unusual or unexpected formation, cave-ins, flooding, pressures, and precious
metals losses (and the risk of inadequate insurance or inability to obtain
insurance to cover these risks);
- changes in accounting policies and methods we use to report our financial
condition, including uncertainties associated with critical accounting
assumptions and estimates;
- environmental issues and liabilities associated with mining including
processing and stock piling ore;
- geopolitical uncertainty and political and economic instability in countries
which we operate; and
- labour strikes, work stoppages, or other interruptions to, or difficulties
in, the employment of labour in markets in which we operate mines, or
environmental hazards, industrial accidents or other events or occurrences,
including third party interference that interrupt the production of minerals
in our mines.
For further information on Great Basin Gold, investors should review the
Company`s annual Form 40-F filing with the United States Securities and
Exchange Commission www.sec.com and home jurisdiction filings that are
available at www.sedar.com.
7 March 2012
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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