"George Orwell" <nobody@[EMAIL PROTECTED]
> wrote in message
news:470781db6ab2eb6dd077f38586b78d30@[EMAIL PROTECTED]
>
> JUNIOR MINING
>
> PRODUCTION BEGINS IN APRIL
> As Hollister gold project ramps up, GBG says too early to sell
> Great Basin Gold CEO Ferdi Dippenaar says there is much further value to
> be unlocked at Hollister in the next year
> and the company owes this to shareholders.
> Author: Tessa Kruger
> Posted: Monday , 17 Mar 2008
> JOHANNESBURG - While there has been speculation that Great Basin Gold's
> (JSE: GBGOLD,TSX: GBG, AMEX:
> GBN) Hollister property in Nevada could be acquired by gold majors
> Newmont or Barrick, CEO Ferdi Dippenaar has
> indicated that it is too early to sell the property where much further
> value could be unlocked this year.
> Great Basin starts mining gold at Hollister in April this year and will
> produce 80,000 to 100,000 ounces at a cost of
> $400 per ounce as it builds up production. The company will reach full
> output of 150,000 ounces at a cash cost of
> $214/ounce next year.
> Dippenaar told Mineweb that a more realistic picture of the gold
> property's value will be determined this year through
> both exploration work and the use of stronger gold ($650/ounce) and
> silver prices ($12/ounce). A gold price of
> $550/ounce and silver price of $10/ounce were used in the feasibility
> study for the project. At the still conservative
> prices of $650/ounce and $12/ounce, the project should look
significantly
> better, he said.
> Current exploration work was aimed at increasing the 2 million gold
> equivalent resource ounces at Hollister and
> improving its quality. Exploration was being undertaken in the current
> reserve environment and included drilling in
> target areas, deeper drilling and exploration work just outside the
> Hollister block, but within mining distance.
> Great Basin was still in early stages of developing the Hollister block
> as it only took control of it less than a year ago.
> The company was currently investigating whether there were more gold
> veins running through the property than
> defined yet and has already achieved success in some areas, said
> Dippenaar.
> "Without having the assay results in hand, it does look very
interesting.
> We have come across a few very interesting
> intersections, but everything depends on the values."
> Dippenaar pointed out that much drill work had been done since a
resource
> of 2 million ounces was declared here in
> April 2007 and the value of the property has increased as a result. "The
> value of the block has increased in just one
> year and there is a possibility that its value could look completely
> different as the exploration programme is continued
> for the rest of the year."
> Dippenaar said the company owed it to shareholders to establish what the
> real value of the property was. "Whether
> it's (Hollister) viewed as integral growth of the company or growth for
> another player will be decided by the future. It is
> too early to talk about selling, as there is so much more value to be
> unlocked over the next year."
> Dippenaar said Great Basin also hopes to release updated reserves for
its
> Burnstone project in South Africa in April
> this year by considering a new gold price of $650/ounce and exchange
rate
> of R8 against the US dollar.
> "We hope this will have an impact on reserves at Burnstone where
> resources have increased dramatically to 11
> million ounces in the measured and indicated category (from 7.7m ounces
> in June 2007) and 2 million ounces in the
> inferred."
> Dippenaar said the company would establish through exploration work in
> area four over the next year if production
> ounces at Burnstone could be increased.
> Burnstone was now one step closer to the mining method of longwall
> stoping which involved a high level of
> mechanisation.
> Great Basin starts production later this year and the mine will
> ultimately produce an average of 254,000 ounces
> annually.
>
>
>
>
>
>
> Gold juniors offer better investment proposition
>
> Great Basin Gold could add 1m ounces to Burnstone output
>
GBN is a buy right now IMO and a perfect buyout candidate. But why I am
telling you this Rob? It is not like it is news to you. Hey... Believers
and Non-Believers is what makes a market.. I think the current move up in
GBN will drop a little so if it were new money would not rush right in..
but I would ac***ulate it on dips. Because it does do the dippy-do
regularly..
-DirtŠ
|
