Great Basin narrows June quarter loss

[] — GREAT Basin Gold (GBG), the US and South African
miner, narrowed its first half loss to C$11.9m from C$23.7m previously.

The company’s loss for the quarter to end June narrowed to C$5.4m from C$13.6m last year.

Some 13 786 gold equivalent ounces were sold during the quarter generating proceeds of $16.7m, the compan said.

This represents an increase of 126% over the 6 109 gold equivalent ounces sold during the previous quarter.

A further 25 632 gold equivalent ounces were sold under an ore purchase agreement with Newmont, bringing the total sold for the quarter to 39 418.

Net revenue recognised from Newmont amounted to $23.2m. June net revenue amounted to C$21.9m after deducting toll milling charges of C$6.3m on the sale of 26 517 gold equivalent ounces.

Great Basin said its two flagship operations – Hollister and Burnstone – were on track.

Trial mining at Hollister would be focused on increasing ore tons from underground to 30 000 ore tons per quarter which will have a favourable impact on production unit costs.

Commercial production at the Burnstone project is expected to kick-start by the end of next month.