Great Basin Gold Ltd.
TSX : GBG
AMEX : GBN
JSE : GBGOLD

Great Basin Gold Ltd.

October 11, 2007 08:30 ET

Excellent Grades Returned From Great Basin Gold's Second Metallurgical Bulk Sample From Hollister Project in Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2007) - Great Basin Gold Ltd. ("Great Basin" or the "Company") (TSX:GBG)(AMEX:GBN)(JSE:GBGOLD) announces that it has treated its second bulk ore sample from the Hollister Project. The 3,100 ton bulk sample was collected from trial mining development along the high grade Clementine and Gwenivere veins in the underground workings at its Hollister property on the Carlin Trend in Nevada. The sample was sent to the Jerritt Canyon process facility for milling and gold recovery. The sample had a head grade of 0.708 oz (24.28 g/t) of gold per ton and 6.0 oz (205.72 g/t) of silver per ton, delivering 1,976 ounces of gold and 14,835 ounces of silver, or a total of 2,246 equivalent gold ounces(1). Under the terms of our toll treatment agreement with Jerritt Canyon, Great Basin Gold will be paid for the gold and silver metal recoveries.

Great Basin Gold is carrying out an underground exploration and development program, in line with the feasibility completed in July 2007. The feasibility study of the project which includes the exploitation of the Clementine and Gwenivere high grade gold-silver vein systems indicated a robust rate of return for a 400-ton per day operation utilizing toll milling. Mineral reserves for the project were based on gold and silver head grades of 1.03 oz/ton (35.32 g/t) and 5.71 oz/ton (195.78 g/t), respectively.

Great Basin Gold President and CEO Ferdi Dippenaar commented: "Management is pleased with the improved results of the second bulk sample for its Hollister Project. The tonnages mined were from start-up drifting and continued development activities. Improved mining methods better reflect the head grades for the vein systems, with grades improving by 69% from 0.418 oz/ton (14.33 g/t) for the first bulk sample to the 0.708 oz/ton (24.27 g/t) for the current bulk sample. Great Basin Gold planned to produce some 6,000 oz of gold equivalent during 2007, as part of the preparation to put the mine into production in 2008. To date, a total of 4,773 gold equivalent oz has been produced. We expect to make further improvements when full scale stoping activities commence."

This news release has been reviewed by Johan Oelofse, FSAIMM, the Chief Operating Officer for Great Basin Gold, and a qualified person as described by National Instrument 43-101.

Ferdi Dippenaar, President and CEO

(1) Gold equivalent is based on metal prices of US$550/oz for gold and US$10/oz for silver and recoveries of 90% for gold and 80% for silver.

Cautionary and Forward Looking Statement Information

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 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, effect of and changes to government policies regarding mining and natural resource exploration and exploitation, availability of capital and financing, geopolitical uncertainty and political and economic instability, 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 and Exchange Commission and its home jurisdiction filings that are available at www.sedar.com.

No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • Great Basin Gold Ltd. - South Africa
    Tsholo Serunye
    Investor Services
    27 (0) 11 884 1610
    or
    Great Basin Gold Ltd. - North America
    Melanee Henderson
    Investor Services
    1-800 667-2114
    Website: www.grtbasin.com
    or
    Breakstone Group - USA
    Barbara Cano
    Investor Services
    (646) 452-2334