[miningmx.com] — GREAT BASIN GOLD LIMITEDGreat Basin Gold said on Wednesday in a Q4 2010 production update that its Burnstone Mine in South Africa had commenced with
production build-up.
Ferdi Dippenaar, President and CEO, said: “After nearly four and a half years, the Burnstone mine is up and running.”
The group incorporated in Canada and registered as an external company in South Africa reported on the progress of exploration, development and production activities at its Hollister trial mining operation in Nevada, USA and its Burnstone Mine in South Africa.
At its Burnstone Mine, Great Basin said that the capital expenditure programme “has generally been completed with the vertical and ventilation shafts commissioned. The mine has commenced with production build-up. Development continues with 5 747 metres of on-reef development completed to the end of
December 2010. The focus of current work is to increase the rate of stoping panel development and Long Hole Stoping; both are progressing well”.
It said that the metallurgical plant was successfully commissioned and commenced milling low-grade development ore by mid-October 2010; 65 534 tonnes of low-grade ore had been treated by end of December 2010. “The Company was not in the position to declare commercial production prior to the Christmas break in December.
“During the first 17 days of January 2011, 51 653 tonnes of production material was treated, which is in line with the planned build up for the metallurgical plant.
“A total of 2 186 ounces of gold has been recovered, including 9kg by gravity, 34kg loaded onto carbon and 25kg in residue,” it said.
Great Basin said that due to the lower grade of the development ore being processed by the mill, an average recovery of 86% was achieved but is expected to increase to 95% when higher-grade material is processed. “It is expected that commercial production will be reached by end January 2011.
“At January 17, 2011, there were 156 000 tonnes on the ore stockpile at Burnstone,” the group said.
It noted that exploration and evaluation drilling has continued at both the Burnstone and Hollister operations. “At Burnstone, drilling is currently being conducted from surface and underground to provide infill evaluation and structural
data on future mining blocks. Block evaluation is being advanced by detailed underground channel sampling of on-reef mine development exposures,” it said.
