ESKOM's Power Supply to Great Basin Gold's Burnstone Project Finalized



    VANCOUVER, June 8 /CNW/ - Great Basin Gold Ltd, ("Great Basin Gold" or
the "Company"), (TSX: GBG; NYSE Amex:   GBG; JSE: GBG) today announced that
ESKOM, South Africa's National Electricity Utility has undertaken to supply
power to its Burnstone Mine project. The two companies acknowledged the
strategic importance of the project to the development of the Dipalaseng
Municipality in Mpumalanga. Great Basin Gold is developing a shallow,
long-life mine at a cost of South African Rand ("ZAR") 2 billion (US$247
million) over the 19 year life of mine for the project(1). The Company has
accepted a ZAR119 million (US$14.6 million) official Budget Quotation for a
new supply of power to the Burnstone Mine. This quotation outlines the project
for the supply of power to Burnstone which is planned to be completed in time
for the commissioning of the metallurgical process plant that is currently
under construction.
    The ESKOM 2008 announcement, outlining a backlog in keeping up with the
national power demand, and its subsequent drastic power conservation scheme
came at the time when the Burnstone project had entered mid-stage
construction. ESKOM pledged support to the project after Great Basin Gold
engaged with the utility on the matter as part of its risk mitigation
strategy. ESKOM committed to Burnstone's phased power demand requirements,
subject to the terms of the Budget Quotation, which involve the refurbishment
of an existing line, and construction of a new section of a power line to
Burnstone. This process is jointly managed by the two companies to coincide
with project completion.
    ESKOM's support to Burnstone is of strategic importance to allow the
project to be developed to its planned production levels. In combination with
the approval of the Burnstone Mining Right and environmental management
program in October 2008, the project now has the key elements in place for
project development.
    Ferdi Dippenaar commented, "We are pleased by ESKOM's support and welcome
their positive attitude towards a project that will see the first new gold
mine in South Africa in many years. Securing sufficient permanent power supply
to the Burnstone Mine has been an ongoing concern to the Company and its
investors. In addition to the supply to the mine, ESKOM has planned to upgrade
the regional infrastructure which will bring economic development and wealth
to a community with high levels of poverty and unemployment. We look forward
to working with them to improve the living conditions of the communities in
that region."
    Johan Oelofse, PrEng, FSAIMM, Chief Operating Officer for Great Basin
Gold and a qualified person, has reviewed this release.

    
    Ferdi Dippenaar
    President and CEO

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

    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.

    (1) February 2009 Technical Report filed on www.sedar.com.




For further information:

For further information: For additional details on Great Basin Gold Ltd.
and its gold properties, please visit the Company's website at
www.grtbasin.com or contact Investor Services: Tsholo Serunye in South Africa,
+27 (0)11 301 1800; Michael Curlook in North America, 1-888-633-9332; Barbara
Cano at Breakstone Group in the USA, (646) 452-2334

Organization Profile

Great Basin Gold Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890