VANCOUVER, Oct. 13, 2011 /CNW/ - Great Basin Gold Ltd, ("Great
Basin" or the "Company"), announces an updated mineral resource
estimate for its Burnstone Gold Mine in the Mpumalanga Province,
South Africa. The updated mineral resource estimate, inclusive of
all drilling and underground evaluation up to June 30, 2011, is
tabulated below at a range of cutoffs. At a cutoff of 300 cmg/t,
the total Measured and Indicated Resources contain approximately
12.6 million ounces of gold, and the Inferred Resources contain
approximately 10.1 million ounces of gold. Burnstone Mineral
Resources as at June 30, 2011
________________________________________ | CLASS |CUT
OFF|TONNES|GOLD| GOLD | | | cmg/t | Mt |g/t | oz |
|_________|_______|______|____|__________| |Measured | 250 | 43.0
|5.20|7,187,100 | |_________|_______|______|____|__________|
|Measured | 300 | 38.8 |5.34|6,664,900 |
|_________|_______|______|____|__________| |Measured | 350 | 34.8
|5.52|6,166,600 | |_________|_______|______|____|__________| | | |
| | | |_________|_______|______|____|__________| |Indicated| 250 |
30.7 |6.39|6,315,700 | |_________|_______|______|____|__________|
|Indicated| 300 | 28.1 |6.59|5,947,780 |
|_________|_______|______|____|__________| |Indicated| 350 | 25.8
|6.83|5,654,100 | |_________|_______|______|____|__________| | | |
| | | |_________|_______|______|____|__________| | M + I | 250 |
73.7 |5.70|13,502,800| |_________|_______|______|____|__________| |
M + I | 300 | 66.9 |5.87|12,612,600|
|_________|_______|______|____|__________| | M + I | 350 | 60.5
|6.07|11,820,700| |_________|_______|______|____|__________|
________________________________________ | CLASS |CUT
OFF|TONNES|GOLD| GOLD | | | cmg/t | Mt |g/t | oz |
|________|_______|______|____|___________| |Inferred| 250 | 82.4
|4.11|10,889,300 | |________|_______|______|____|___________|
|Inferred| 300 | 72.8 |4.30|10,061,900 |
|________|_______|______|____|___________| |Inferred| 350 | 61.0
|4.60| 9,023,000| |________|_______|______|____|___________| Notes
to tables: 1. Mineral resources that are not mineral reserves do
not have demonstrated economic viability. 2. Metallurgical
recoveries are not applied to resource values. At a 300 cmg/t
cut-off, the current update reflects a slight increase in tonnage
(3%) and a slight drop in grade (-6%) when compared to the August
2010 estimate (see Great Basin News Release dated August 23, 2010).
The Burnstone Mine has progressed from a development project to the
gold production stage, and is now in a build-up phase with steady
state production expected by 2013. The above mineral resources,
which include the mine's mineral reserves, have been depleted by
production to June 30, 2011 and are stated as of that date. The
mineral resource classification method applied in this update is in
line with that utilized in the August 2010 estimate, with a minimum
of six informing samples used for estimates in the Measured
category, a minimum of three informing samples used for Indicated,
and two informing samples used for Inferred. The total number of
informing Kimberley Reef intersections utilized for the estimate is
2050, a substantial increase from the 610 intersections used in the
2010 estimate. For the 2011 estimate, these include 514 from
surface boreholes (339 in 2010), 42 from underground boreholes (35
in 2010), and 1494 from underground channel composite samples (362
in 2010). In addition, a total of 819 historic deflections from
surface boreholes have been used, where appropriate, for assay and
sedimentological confirmation. Geozones developed from deposit
modeling in the area of interest were updated as part of the basis
for the estimation, but remain very similar to those used in the
August 2010 resource update. These zones are delineated by a
combination of variable geological parameters such as channel
width, gold grade (g/t) and gold accumulation (cmg/t), footwall
lithology, and sedimentary facies. Variography, generated from the
current geostatistical analyses for the estimates, is in line with
previous observations. The continued underground exposure of
Kimberley Reef from mine development is providing a basis for
detailed evaluation data (channel samples) and structural mapping.
All told, the results continue to demonstrate higher confidence in
the estimated total Measured and Indicated resources. President and
CEO Ferdi Dippenaar commented: "Over the past few months, the
Burnstone Mine has seen a steady ramp up in production dependent on
the rate of reef development currently achieved. Accordingly, the
evaluation of the Kimberley Reef ore body, which previously mainly
relied upon surface drilling, now has increased information at hand
consisting of detailed underground channel sampling, underground
delineation and cover drilling as well as infill evaluation
drilling from surface. The concurrent sampling of approximately
11,400 meters of underground on-reef development has contributed to
an improved understanding of the ore body. This is valuable
information that will assist in achieving the planned increased
rate of mining for the remainder of 2011 and 2012." The Burnstone
goldfield is defined by an 18 kilometer long, northwesterly
trending mineralized corridor hosting the Kimberley Reef, one of
four main gold-bearing units in the Witwatersrand Basin. At
Burnstone, the central portion of the gold corridor has been
uplifted by two northwesterly trending sub-parallel faults and, as
a result, a significant portion of the deposit areas along the
trend occur at relatively shallow depths of 200-750 meters below
surface. The mineral resource estimation was done using
geostatistical methods by Freddie de Bruin, Pr.Sci.Nat. of Deswiks
Mining Consultants (Pty) Ltd., an Independent Qualified Person as
defined by Canadian Securities Regulations in National Instrument
43-101. The primary analytical facility for the Burnstone Project
from 2003-2005 has been SGS Lakefield Research Africa (Pty) Limited
and subsequently (2006-2011), ALS Chemex has been the primary
laboratory. Both facilities are located in Johannesburg, South
Africa. Phil Bentley, Pr.Sci.Nat. VP: Geology and Exploration for
Great Basin Gold Ltd., a Qualified Person as defined by Canadian
Securities Regulations in National Instrument 43-101, has reviewed
and approved the information within this news release. No
regulatory authority has approved or disapproved the information
contained in this news release. Information Concerning Estimates of
Measured, Indicated and Inferred Resources This news release uses
the terms "measured resources", "indicated resources" and "inferred
resources". The Company advises investors that although these terms
are recognized and required by Canadian regulations (under National
Instrument 43-101 Standards of Disclosure for Mineral Projects),
the U.S. Securities and Exchange Commission does not recognize
them. Investors are cautioned not to assume that any part or all of
the mineral deposits in these categories that are not already
included in reserves will ever be converted into reserves. In
addition, 'inferred resources' have a great amount of uncertainty
as to their existence, and economic and legal feasibility. It
cannot be assumed that all or any part of an Inferred Mineral
Resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of Inferred Mineral Resources may not form the
basis of feasibility or pre-feasibility studies, or economic
studies except for Preliminary Assessment as defined under
NI43-101. Investors are cautioned not to assume that part or all of
an inferred resource exists, or is economically or legally
mineable. Cautionary and Forward Looking Statement Information This
document contains "forward-looking statements" that were based on
Great Basin'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 whether mineral resources or
reserves 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 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 o mine expansions, environmental protection
and associated compliance costs arising from exploration, mine
development, mine operations and mine closures; o expected
effective future tax rates in jurisdictions in which our operations
are located; o the protection of the health and safety of mine
workers; and o 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. Great Basin Gold Ltd. CONTACT:
For additional details on Great Basin and its gold properties,
pleasevisit the Company's website at www.grtbasin.com or contact
InvestorServices:Tsholo Serunye in South Africa 27 (0) 11 301
1800Michael Curlook in North America 1 (888) 633 9332Barbara Cano
at Breakstone Group in the USA (646) 4522334
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