Great Basin Gold Ltd.

Great Basin Gold Ltd.

May 01, 2007 08:01 ET

Good Grades Returned From Great Basin Gold's First Metallurgical Bulk Sample From Hollister Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 1, 2007) - Great Basin Gold Ltd. ("Great Basin" or the "Company") (TSX:GBG)(AMEX:GBN)(JSE:GBGOLD) announces that it has treated its first ore from its Hollister Development Block project by sending a 5,074-ton bulk sample for treatment. The bulk sample was collected from drifting 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 Newmont Mining Corporation's Mill 6 facility, pursuant to the terms of an "Agreement for Purchase and Sale of Ore". The sample had a recovery grade of 0.418 oz (13.4 g/t) of gold per ton and 4.18 oz (134.4 g/t) of silver per ton, containing 2,090 ounces of gold and 24,050 ounces of silver. As per the agreement Great Basin Gold will be paid for respective gold and silver recoveries of approximately 90% and 80%.

Great Basin Gold is carrying out an underground exploration and development program, with the objective of advancing the project through to feasibility and to production. A 2006 preliminary assessment of the project exploiting the Clementine and Gwenivere high grade gold-silver vein systems indicated a robust rate of return for a 520-ton per day operation utilizing toll milling. Before a 50% dilution and applicable recoveries, inferred resources for the project were based on gold and silver grades of 1.29 oz/ton and 7 oz/ton, respectively.

Great Basin Gold President and CEO Ferdi Dippenaar commented: "Management is pleased with the results of the first bulk sample for Hollister. The tonnages mined were from start-up drifting and development activities. Future mining methods will better reflect the diluted recovery grades for the vein systems. The recovered grade of nearly one half ounce of gold and more than 4 ounces of silver per ton is lower than that of the diluted inferred resource for the deposit; however, these kinds of recoveries and payment on lower grades bodes very well for the higher grades we anticipate for production. Drifting continues and we expect an additional 5,000 tons to be shipped in a few months time. In addition, a new resource estimate is underway based on the results from the underground drilling program that was recently completed. Once this has been done, all of the results will be incorporated in the assumptions for the feasibility study which is due for completion by the end of June 2007."

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

For additional details on Great Basin and its gold properties, please visit the Company's website at or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

Ferdi Dippenaar, President and CEO

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

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

Contact Information

  • Great Basin Gold Ltd.
    Shawn Wallace
    Investor Services
    (604) 684-6365 or Toll Free at 1-800-667-2114
    (604) 684-8092 (FAX)