BURNSTONE GOLD PROJECT:
EXECUTION OF MINING RIGHT AND ENVIRONMENTAL MANAGEMENT PROGRAM
February 25, 2009, Vancouver, BC -
Great Basin
Gold Ltd, ("Great Basin Gold" or the "Company"), (TSX: GBG;
NYSE Amex: GBG; JSE: GBG) announces the execution of its mining right, and
the approval of its environmental management program by the Department of
Minerals and Energy ("DME") for the Burnstone Gold Project in South
Africa.
A mining right to allow the Company's wholly owned subsidiary, Southgold
Exploration (Pty) Ltd ("Southgold"), to mine gold, silver and aggregate
in the Burnstone mine area was initially granted on October 28, 2008.
This mining right was notarially executed in the name of Southgold on February
17, 2009 by the DME Regional Manager: Mpumalanga. The mining right is valid
for an initial period of 18 years from date of execution and gives Southgold
the right to mine for gold and silver in the mining area known as Area 1.
The Company will apply for an extension of the licensing period, and will
do so in terms of section 24 of the Mineral and Petroleum Resources Development
Act, 2002 ("MPRDA"), which makes provision for the renewal of the
mining license for periods not exceeding 30 years at a time.
Simultaneously with the execution of the mining right, the environmental
management program for Area 1 of the Burnstone Mine was approved by the
DME. In terms of section 23 (5) of the MPRDA, a mining right comes into
effect on the day the environmental management program is approved.
The mandatory legislative Environmental Impact Assessment ("EIA")
for Area 2 has commenced. It is envisaged that the EIA will be completed
by September 2009, after which the DME will be approached for approval to
access this mining region by way of a twin decline shaft. Currently approximately
7.5 million tonnes in Area 2 is in the mine plan, which will initially extract
approximately 50,000 tons of ore per month. Although Area 2 would be accessed
by a dedicated twin decline shaft, mining operations would share the surface
infrastructure currently established for Area 1, with the exclusion of ventilation
shafts. To date, 80 surface boreholes have been drilled on Area 2. In addition
to exploration drilling in Area 4, a further phase of surface drilling is
planned to begin during the second half of 2009 in Area 2, to evaluate the
area of the decline in more detail as well as confirm extensions of the
Kimberley Reef.
Ferdi Dippenaar, President and CEO, commented: "This is another important
milestone in the history of Great Basin Gold, as it clears the way for commercial
mining at the Burnstone project. We wish to extend our appreciation to the
DME for all the guidance and assistance over the past year which resulted
in the Company obtaining the mining right and thereby initiating the start
up one of the few new gold mines in South Africa in the past 30 years. We
look forward to delivering a commercial mining operation by June 2010."
Johan Oelofse, PrEng, FSAIMM, Chief Operating Officer for the Company and
a qualified person, has reviewed this news release on behalf of Great Basin
Gold.
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 +1
646 452-2334
Ferdi Dippenaar
President and CEO
No regulatory authority has approved or disapproved the information contained
in this news release.
Cautionary and Forward
Looking Statement Information
This release includes certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements of
historical facts, that address possible future commercial production, bank
loan arrangements, reserve potential, exploration drilling results, development,
feasibility or exploitation activities and events or developments that Great
Basin Gold expects to occur are forward-looking statements. Although the
Company believes the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ materially
from those in the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking statements include
market prices for precious metals, credit availability, development and
exploration successes, continuity of mineralization, uncertainties related
to the ability to obtain necessary permits, licenses and title and delays
due to third party opposition, geopolitical uncertainty, changes in government
policies regarding mining and natural resource exploration and exploitation,
and continued availability of capital and financing, and general economic,
market or business conditions. Investors are cautioned that any such statements
are not guarantees of future performance and those actual results or developments
may differ materially from those projected in the forward-looking statements.
For more information on the Company, Investors should review the Company's
annual Form 40-F filing with the United States Securities and Exchange Commission
and its Canadian jurisdiction filings that are available at www.sedar.com.