Great Basin Gold (AMEX: GBG) is a mining company engaged in the development and exploration of gold properties. The company is currently in late-stage development at two projects – the Hollister project and the Burnstone project – in two of the world’s most well-known gold producing regions. The Hollister project is located on the Carlin Trend in Nevada while the Burnstone project is located on the Witwatersrand Basin in South Africa.
The company’s ambition of becoming a mid-tier gold producer is fast becoming a reality and should be achieved some time in the summer of 2010. Currently, the Hollister project is producing only 80,000 ounces of gold per year, but production is expected to be ramped up soon to 120,000 ounces of gold per year. Production was held back by milling issues but these have since been resolved through the refurbishment of the Esmeralada mill.
Production is expected to start very soon at Great Basin’s Burnstone project in South Africa’s underexploited South Rand goldfield. Unlike many other South African mines, the gold here is at very shallow depths which makes it cost-effective. It is expected that this project will be producing 80,000 ounces of gold per year which will allow the company to hit its target of 200,000 ounces of gold produced annually.
Between the two projects, Great Basin Gold has access to a total resource base of 19.1 million tons of gold. At capacity, the Hollister and Burnstone mines will be capable of producing 374,000 ounces of gold per year. This will generate considerable cash flow which will allow the company to fund further exploration efforts, particularly in Africa.