Great Basin doubles Nevada gold estimate

Vancouver — After 16,750 metres of underground drilling, Great Basin Gold (GBG-T, GBN-X) has announced their Hollister Development Block gold project in Nevada holds twice as much gold and silver as previously thought.

Great Basin’s new resource estimate shows their property, a small central portion of the 85-sq.-km Hollister property (previously called Ivanhoe) in the northern portion of the Carlin trend in Nevada, contains in excess of 2 million oz. gold equivalent.

The measured and indicated resources are now pegged at 819,000 tonnes grading 35.32 grams gold per tonne and 195.77 grams silver per tonne. Inferred resources stand at 930,000 oz. gold equivalent, from 731,000 tonnes of 37.13 grams gold and 134.93 grams silver.

Surface exploration up to 2002 outlined a high-grade gold-silver resource in the Clementine and Gwenivere vein systems. At that time the inferred resources were estimated at roughly 1 million oz. gold equivalent.

Great Basin and its Hollister site partner at the time, Hecla Mining (HL-N) then built a decline and drilled 16,750 metres from underground in the year prior to February 2007. Drill holes were spaced 30 metres apart to fill in gaps from a surface-drilling program.

Great Basin announced drill results in early May, and the new resource estimate a few weeks later.

Great Basin bought Newmont Minings (NMC-T, NEM-N) 75% interest in the Hollister property for US$6 million in 1997. In 1999 the company purchased Touchstone Resources, which held the remaining 25% of the property. From 1997 to 2001 Great Basin explored the site, uncovering gold in the Clementine, Gwenivere, and south Gwenivere vein systems.

In mid-2002 Great Basin entered into earn-in and joint operations agreements with Hecla, which had an option to earn a 50% working interest by spending US$21.8 million on advanced exploration and site development.

In February 2007 Great Basin purchased Hecla’s earned-in interest in the Hollister site with US$45 million in cash and US$15 million in shares. The agreement closed in late April, returning 100% ownership of the property to Great Basin.