Buffalo, NY 11/15/2009 3:05:00 AM
News / Business

Great Basin (TSX: GBG; NYSE Amex: GBG; JSE: GBG) Files Final Prospectus

Great Basin Gold Ltd. (TSX: GBG; NYSE Amex: GBG; JSE: GBG)stated  that it has filed a final prospectus in all Provinces of Canada relating to the offering of $110 million of convertible debentures ($126.5 million with over-allotment option) on Nov 12, 2009. The prospectus updates financial and operational information and incorporates an amended executive compensation form for the year ended December 31, 2008. Completion of the offering and commencement of trading of the Debentures are subject to meeting TSX listing requirements and completion of customary closing documents.  Great Basin anticipates low cost production from Hollister Project: Production at the Hollister property on the prolific and highly developed Carlin Trend in Nevada reached 80,000Au eq oz in 2008. With proven and probable reserves of 1.12 million ounces grading of 0.84oz/ton Au and Resources of 1.45 million ounces in the measured and indicated category, the mine will have an average annual production of 120,000Au eq oz. per year over a 10 year life of mine.

 

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The recent purchase and refurbishment of the Esmeralda Mill has resolved milling issues; opened up opportunities for expansion and enabled efficiencies in the entire mining operation. In June 2009, Hollister updated the mineral resources based on trial mining and drilling results and increased its overall contained gold equivalent ounces by 27% from 2.3 to 2.9 million ounces. Gold production at the Burnstone Mine,is located in the world’s most prolific goldfield, the Witwatersrand Basin in South Africa. The area contains a gold resource in excess of 16.2 million (M&I and Inferred) ounces of which 11,6 million are in the measured and indicated category at a 400 cmg/t cut-off. Burnstone is the first new mine to open in the Witwatersrand region for more than 30 years. It is a shallow, low cost, low risk mine with a 19 year mine life and is fully financed. Production and commissioning of the metallurgical plant is targeted for June 2010. Anticipated average annual production is 254,000 oz at a cash cost of US$319 per oz., with a substantial upside potential for later phases of development that will position Great Basin Gold as a leading mid-tier gold producer.

 

Exploration Growth are postive factors for Great Basin.. The sustainability of the Burnstone and Hollister operation are underpinned by solid brownfields (i.e. adjacent) opportunities to discover and delineate further ounces. At Hollister the newly discovered Hatter Graben zone provides a real growth in exploration opportunity. In addition, GBG has prospective greenfields exploration properties in Tanzania and Mozambique. Great Basin is a financially sound in that  it is adequately financed to commission its Burnstone project by mid-year 2010 (average annual production of 254,000oz per year over 19 year LOM). With the Hollister Mine producing an average annual of 120,000Au eq oz. per year for 10 years, and Burnstone coming on stream, significant cash flow should be realized to further grow and strengthen the company.

 

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