Message #2 From:
NewsBot Date: December 12, 2005 07:09:00 AM
GBN News Great Basin Gold Ltd.: Bonanza Grades Intersected Underground at Hollister Development Block Project in Nevada
VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 12, 2005--Great Basin Gold Ltd. (TSX:GBG)(AMEX:GBN) announces that underground development has encountered the high-grade gold and silver vein systems at the Hollister Development Block (HDB) Project at the Ivanhoe Property, located on the Carlin Trend, about 75 km northwest of Elko. Excellent gold and silver values over substantial widths, including 8.2 feet grading 3.17 ounces per ton (oz/t) gold and 28.3 oz/t silver and 15.3 feet grading 0.49 oz/t gold and 7.9 oz/t silver, were reported from sampling of the Gwenivere vein system - one of three main high-grade gold-silver vein systems in the HDB Project area.
The Gwenivere vein system was intersected by the access decline about 2,720 feet from the portal. The decline is part of a two phase underground exploration and development program designed to take the HDB project through feasibility and potentially to commercial production. The program consists of about 5,600 feet of decline and underground development to access the two vein systems, including associated cross-cuts and diamond drill stations. Mining of approximately 5,000 tons of bulk sample from the different veins within the system is planned, along with an estimated 55,000 feet of diamond drilling from underground locations. The program is operated by an affiliate of Hecla Mining Company (together "Hecla") under an earn-in agreement. Definition drilling, which is required to elevate resources to reserves, is expected to begin in the first quarter of 2006, leading to the completion of a feasibility study later in the year.
Results are summarized below. These values are the weighted average of two channel samples collected at chest and knee height on either side of the 14-foot wide decline. Full results are included in the attached table of assay results.
The Clementine, Gwenivere and South Gwenivere vein systems were discovered by Great Basin through extensive drilling programs in the HDB Project area from 1998-2001. The nearest hole drilled from surface - IH-059 - intersected 5.4 feet grading 0.51 oz/t Au and 53.3 oz/t Ag.
Development of the HDB is the subject of an August 2002, four year Earn-in Agreement between Great Basin and its subsidiary and Hecla, whereby Hecla has the right to earn a 50% interest in the HDB and thereupon form a joint venture. To earn-in to a 50% joint venture interest, Hecla, must complete an agreed first stage program consisting of an initial phase of underground access development, detailed drilling for reserve definition, bulk sampling and completion of a feasibility study and thereafter, subject to completion of the first stage, Hecla must then either timely complete a second phase of development work or take the project to commercial production. Alternatively, subject to completing Stage one, Hecla may timely make a payment to the Hecla/Great Basin joint venture (50:50) of the difference between $21.8 million and the actual costs of stage one (excluding stage one cost overruns in excess of 10%) certain share purchase warrants would also be exchanged between Great Basin and Hecla. Hecla has filed a court application seeking an extension of time to complete its earn-in requirements.
Samples collected from the project are stored in a secured facility until delivered by Hecla personnel to American Assay Laboratories (AAL) in Sparks, Nevada. Sample preparation consists of drying and jaw-crushing the entire sample to 70% passing 10-mesh, taking a 300 g sub-sample using a Jones splitter, and then pulverizing the sub-sample to 120-mesh using a vertical spindle pulverizer. Gold and silver determinations are by 2 assay-ton (60 g) fire assays and gravimetric finish. Laboratory QA/QC is monitored using Hecla coarse reject blanks, Hecla assay standards, duplicate fire assays as well as AAL's internal standards and blanks. Two coarse reject "blanks" (quartz vein material assaying nil-0.1 Au oz/t), and the assay standards are inserted by Hecla into the sample sequence as blind samples prior to delivery of the samples to the laboratory. AAL inserts one assay standard and one assay blank into the sample stream. Two of Hecla's sample pulps, chosen at random by AAL, are assayed in duplicate. QA/QC results were within acceptable limits.
Dave Copeland, PEng., a qualified person and Director of Great Basin, is monitoring the program on behalf of the Company, and has reviewed this news release.
Great Basin is a mining exploration and development company with advanced stage gold assets on the Carlin Trend in Nevada, USA, and the Witwatersrand Goldfield in South Africa. In addition to the underground program at the Hollister Development Block Project, a feasibility study of the Company's Burnstone Gold Project in South Africa is nearing completion. For additional details on Great Basin and its gold properties, please visit the Company's website at www.greatbasingold.com.
Ferdi Dippenaar, President and CEO
Ronald W. Thiessen, Director
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, reserve potential, exploration drilling results, development, feasibility or exploitation activities and events or developments that Great Basin ("the Company") 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, exploitation and exploration successes, 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 20-F filing with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com.
