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

Great Basin Gold Ltd.

June 23, 2008 09:49 ET

A New Vein System Discovered on Great Basin Gold's Hollister Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 23, 2008) - Great Basin Gold Ltd. (TSX:GBG)(AMEX:GBN)(JSE:GBG) ("Great Basin" or the "Company") announced today that surface exploration drilling has discovered a previously unrecognized vein system in the Hatter Graben area, located approximately two kilometers from the current decline infrastructure at its Hollister Development Project in Nevada, USA.

Drilling in the Hatter Graben is targeting shallow east-west trending resistivity anomalies. Eight holes have been completed on the newly discovered Hatter Graben vein system. Final assay results have been received for three of the holes and are pending on the remaining five holes (see attached table of assays).

The first hole, H8-264, drilled into this target intercepted a high-grade banded quartz vein with visible gold and a stockwork zone from 2059.0 ft - 2067.7 ft (627.6 m - 630.2 m). This vein has a composited grade of 5.5 ft (1.68 m) @ 0.54 oz/t (18.55 g/t) gold. Additionally, an upper breccia zone was encountered at 1570 ft - 1825 ft (478.5 m - 556.3 m) down the hole with an estimated true thickness of 180 ft. This zone contains gold bearing quartz stockwork/breccias, quartz veining, and sulfidically healed breccias with several high-grade intercepts.

Hole H8-265 targeted veins and breccias intersected in H8-264 but 150 ft (45.75 m) lower in elevation. Similar high-grade intercepts were encountered that correlate with H8-264. This hole was drilled 700 ft (213 m) deeper than H8-264 and encountered a second discrete high-grade vein containing visible gold and grading 1.6 ft (0.5 m) @ 1.36 oz/t (46.4 g/t) gold at 2583.0 - 2585.5 ft (787.3 m - 788.1 m) down the hole. Additionally, a 100 ft (30 m) zone of highly anomalous gold intercepts was encountered in the overlying volcanic rocks from 1019.0 ft (310.6 m) to 1121.7 ft (341.9 m).

Anomalous mineralization encountered in hole H7-233 represents disseminated gold mineralization in the volcanic rocks overlying Hollister's deeper sedimentary host rocks. This may represent a deeper vein structure channeling mineralizing fluids into the overlying volcanic strata at this location. This mineralized zone will be drilled deeper to test for the presence of bonanza veins in the sedimentary host rocks.

Drill results show the Hatter Graben veins exist in a robust and wide east-west trending structural zone and contain several sub paralleling bonanza-grade veins similar to the Gwenivere and Clementine vein systems that the Company is currently developing from underground. Three holes are currently being drilled to offset the vein system down-dip and step out along strike 400 ft (122 m) to the west and 1500 ft (457 m) to the east.

President and CEO of Great Basin, Ferdi Dippenaar, commented: "The discovery of the new vein system has exceeded our expectations as this could have a significant impact on the size of the Hollister Property resource. Our decision to embark on an extended exploration program is delivering the planned results. We have three rigs currently drilling on this discovery, focused on confirming the strike and extent of the vein system. Infill drilling is also planned to determine if this system is an extension of the Gwenivere and Clementine vein systems. With the additional drilling on the North/South structures, bounding the Gwenivere and Clementine vein systems also underway. We expect to have a holistic geological view of the Hollister Development Project area and immediate vicinity by the end of the year."

Johan Oelofse, Pr.Eng., FSAIMM, Chief Operating Officer of Great Basin Gold Ltd., and a qualified person, has reviewed and approved this news release.

Ferdi Dippenaar, President and CEO



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Significant Intercepts
----------------------------------------------------
Dri- Est.
Vein Vein Inter- Sample lled True Analytical Results
System/ section (ft) Interval (ft) Thick- Wid- -------------------------
Drill ------------- ------------- ness th Au Au Ag Ag
Hole ID From To From To (ft) (ft) (opt) (g/T) (opt) (g/T)
--------------------------------------------------------------------------
Hatter 1570.0 1571.0 1.0 0.7 0.179 6.12 1 34
Graben/ 1580.2 1581.0 0.8 0.6 0.088 3.03 1.9 66
H8-264 1581.0 1585.6 4.6 3.3 0.013 0.44 less less
than than
0.1 5
1585.6 1586.3 0.7 0.5 1.98 67.8 8.2 282
1595.6 1596.4 0.8 0.6 2.22 76 6.5 223
1610.0 1613.0 3.0 2.1 0.236 8.1 1.3 45.7
1610.0 1610.9 0.9 0.6 0.391 13.4 2.3 78
1610.9 1612.0 1.1 0.8 0.012 0.41 less less
than than
0.1 5
1612.0 1613.0 1.0 0.7 0.343 11.8 1.7 59
1645.7 1647.8 2.1 1.5 0.594 20.4 4.2 145
1686.0 1686.6 0.6 0.4 0.017 0.57 less less
than than
0.1 5
1709.5 1710.5 1.0 0.7 0.333 11.4 3 102
1741.9 1742.4 0.5 0.4 0.006 0.21 less less
than than
0.1 5
1748.6 1749.3 0.7 0.5 0.128 4.38 0.7 23
1780.5 1784.2 3.7 2.6 0.214 7.34 1.7 78.1
1780.5 1781.3 0.8 0.6 0.12 4.1 0.6 21
1781.3 1783.5 2.2 1.6 0.032 1.09 0.2 7
1783.5 1784.2 0.7 0.5 0.895 30.7 7.6 261
2059.7 2067.5 7.8 5.5 0.54 18.55 3.9 115.8
2059.7 2061.0 1.3 0.9 0.073 2.51 10.7 366
2061.0 2062.4 1.4 1.0 0.095 3.25 2.1 71
2062.4 2063.8 1.4 1.0 1.47 50.5 5.4 184
2063.8 2066.8 3.0 2.1 0.008 0.28 less less
than than
0.1 5
2066.8 2067.5 0.7 0.5 2.72 93.3 8.2 282
--------------------------------------------------------------------------
Hatter 1019.0 1020.0 1.0 0.6 0.313 10.72 0.005 0.2
Graben/ 1020.0 1021.7 1.7 1.0 0.043 1.47 0.00 0.1
H8-265 1021.7 1028.5 6.8 4.4 0.116 3.96 0.00 0.1
1077.7 1082.0 4.3 2.8 0.104 3.575 0.00 less
than
0.1
1102.1 1109.0 6.9 4.4 0.116 3.96 0.00 0.1
1109.0 1110.7 1.7 0.8 0.014 0.048 0.00 0.1
1110.7 1121.7 11.0 7.1 0.155 5.33 0.00 0.1
1139.0 1144.3 5.3 3.4 0.128 4.402 0.01 0.4
1459.0 1464.0 5.0 3.2 0.112 3.85 0.15 5.0
1472.6 1475.5 2.9 1.9 0.54 18.5 3.59 123.0
1484.2 1486.4 2.2 1.4 0.657 22.52 3.68 126.0
1537.8 1539.0 1.2 0.8 0.111 3.8 0.30 10.2
1563.9 1565.0 1.1 0.7 0.101 3.457 0.12 4.0
1663.5 1666.8 3.3 2.1 1.28 44.0 6.2 211.0
1687.0 1689.0 2.0 1.3 1.125 38.5 7.0 241.0
1769.4 1770.4 1.0 0.6 0.352 12.05 3.3 113.0
1771.5 1772.6 1.1 0.7 0.105 3.6 1.5 50.0
1907.1 1907.9 0.8 0.5 0.155 5.31 less less
than than
0.1 5
1948.2 1954.0 5.8 3.7 0.118 4.03 less less
than than
0.1 5
2094.0 2095.0 1.0 0.6 0.155 5.32 1.3 46.0
2160.2 2162.5 2.3 1.5 1.11 38.0 7.5 259.0
2224.5 2225.4 0.9 0.6 0.291 9.97 1.7 57.0
2334.5 2336.4 1.9 1.2 0.333 11.4 0.2 8.0
2583.0 2585.5 2.5 1.6 1.355 46.4 5.5 188.0
--------------------------------------------------------------------------
Hatter 1400.5 1402.5 2.0 1.4 0.111 3.8 0.335 11.5
Graben 1755.8 1757.4 1.6 1.1 0.136 4.67 0.09 3.1
South/ 1815.0 1826.0 11.0 7.8 0.154 5.28 0.70 24.1
H7-233 1815.0 1816.0 1.0 0.7 0.216 7.39 5.48 188
1816.0 1826.0 10.0 7.1 0.148 5.07 0.22 7.7
1888.3 1889.2 0.9 0.6 0.113 3.86 1.18 40.6
2041.3 2042.6 1.3 0.9 0.132 4.51 0.60 20.6
--------------------------------------------------------------------------


Samples collected from the Hollister Development Project are stored in a secure facility until picked up by Inspectorate America Corporation (Inspectorate) of Sparks, Nevada. Vein samples are analyzed by either metallic screen or standard fire assay procedures. For metallic screen analyses, vein sample preparation consists of drying and jaw-crushing the entire sample to 90% passing 10-mesh, taking a 500 g sub-sample using a rotary splitter, and then pulverizing the 500 g sub-sample to 90% passing 150-mesh using a large capacity ring and puck pulverizer. Gold and silver determinations are by metallic screen analysis, with two 1 assay-ton (30 g) fire assays completed on the fine fraction; the coarse fraction is fire assayed in its entirety. For standard fire assay, vein sample preparation consists of drying and jaw-crushing the entire sample to 90% passing 10-mesh, taking a 300 g sub-sample using a Jones splitter, and then pulverizing the 300 g sub-sample to 90% passing 150-mesh using a large capacity ring and puck pulverizer. A 30 g charge is fire assayed. All metal determinations are by gravimetric finish. Vein samples analyzed by standard fire assay will be re-assayed using metallic screen procedures. Laboratory Quality Assurance/Quality Control (QA/QC) is monitored using coarse reject blanks and assay standards, duplicate fire assays, and Inspectorate's internal standards and blanks. Coarse blanks (barren rhyolite or landscape marble) and assay standards are inserted into the sample sequence as blind samples prior to submitting the samples to the laboratory. Inspectorate also inserts assay standards and blanks into the sample stream. QA/QC results are within acceptable limits.

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 Gold 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, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, geopolitical uncertainty, changes in government policies regarding mining and natural resource exploration and exploitation, 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 40-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)11 301 1800
    or
    Great Basin Gold Ltd. - North America
    Melanee Henderson
    Investor Services
    1-800-667-2114
    or
    Breakstone Group - USA
    Barbara Cano
    Investor Services
    (646) 452-2334
    Website: www.grtbasin.com