Great Basin Gold Ltd TSX:GBG announced increases for both its Hollister Project and Burnstone Mine Mineral Reserve and life-of mine estimates. Great Basin has also received credit committee approval for a $60 million term loan financing from Credit Suisse AG, the proceeds of which will be used to repay the high cost Senior Secured Notes issued during the 2008 credit crisis.
CEO Ferdi Dippenaar commented, “Our ongoing evaluations of the two ore bodies, which encompass delineation drilling and results from trial mining, continue to confirm the value of the Hollister and Burnstone properties, as evidenced in both increased reserves and increased confidence in our measurements. Production from trial mining at Hollister is expected to remain at the level of 110,000 recovered-AuEq oz/annum for the near future. We have conservatively estimated production at the Burnstone mine, which will experience its first full year of mining in 2011, and have focused the management team on prioritizing on-reef development to ensure that this plus 25-year life, world class project has a solid foundation to deliver successful production in the future.
“With the commitment of the Credit Suisse facility, Great Basin Gold now has the necessary funds to retire the US$52 million Senior Secured Notes, a debt facility put in place in November 2008. This both reduces our cost of capital and provides us better financial coordination with a single corporate lender.”
View Company Profile
Manager, Inverstor Relations
Read More about Great Basin Gold
by Ted Niles