Great Basin drills at Burnstone

Hunter-Dickinson-led Great Basin Gold (GBG-T) has tabled the results of a 25-hole, 19,000-metre drill program focused on Area 2 of the 400-sq.-km Burnstone property, 100 km southeast of Johannesburg, South Africa.

Selected intercepts include: 54 cm of 9.9 grams gold in hole 50; 86 cm of 4.2 grams gold in hole 51; 1.2 metres of 3 grams gold in hole 56; and 54 cm of 7.4 grams gold in hole 67.

The remaining holes returned grades varying from 0.2 to 7 grams gold over similar widths; 12 of the holes contain visible gold. Great Basin has launched a second, 7,000-metre phase of drilling on Area 2 in anticipation of a new resource estimate, which will be incorporated into the mine plan.

Area 2 has an inferred resource of 24.3 million tonnes running 14.7 grams gold. The estimate is based on only nine drill holes.

Meanwhile, some 3 km to the northwest, Great Basin has begun engineering studies, including cost estimates, for the development of the Area 1 deposit. A 6,000-metre drilling campaign is planned. The company will begin a feasibility study later this year.

Earlier this summer, Great Basin boosted measured resources at Area 1 to 4.7 million tonnes grading 18.5 grams gold. Indicated resources total 2.8 million tonnes of 20.8 grams, or 1.9 million contained ounces. Both figures are based on 57 core holes and a cutoff grade of 350 gram-cm per tonne (T.N.M., June 30-July 6/03).

A 2002 scoping study envisages an underground operation capable of producing 2,500 tonnes per day, from which would be extracted 130,000 oz. gold annually over 24 years. Initial capital costs are pegged at US$50.6 million; cash costs, at US$175 per oz. Also planned is a 5,000-metre drill campaign on Area 3, about 4 km southeast of Area 2. The area has already yielded some of the best intersections on the property so far, including two historic holes that returned 27 grams gold over 61 cm and 36 grams across 27.5 cm.

More recently, drilling by Great Basin encountered 82 grams over 16 cm. Complete results are pending from three recently completed holes totalling some 2,100 metres.

Great Basin believes Areas 1, 2 and 3 represent a portion of a large channel system cutting across the Burnstone property for at least 15 km. A fourth area has been identified, about 2 km south of Area 1. There, the target is believed to be a series of stacked conglomerates. Limited historic drilling returned 314-1,480 cm-gram values. Further drilling is planned.

Gold at Burnstone is hosted by the Kimberley reef, a 30-to-100-cm-wide conglomerate (averaging 40 cm at Burnstone).

Great Basin can acquire up to 100% of South African-based Southgold Exploration, which in turn has the right to acquire 100% of the Burnstone property.

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