Great Basin Gold Successfully Completes Refurbishment of Esmeralda Mill



    VANCOUVER, Aug. 10 /CNW/ - Great Basin Gold Ltd, ("Great Basin" or the
"Company"), (TSX: GBG; NYSE Amex:   GBG; JSE: GBG) announces that it has
completed the refurbishment of the Esmeralda Mill. The Esmeralda Mill will
process material extracted from the Hollister Gold Project at which trial
mining is currently underway.
    The commissioning process at Esmeralda commenced in mid July. The
commissioning will proceed in two phases. Following the completion of a
concrete ore pad, low grade material from Hollister was shipped to Esmeralda.
This material will be used for the first-phase cold commissioning of the mill
with higher grade material to follow in the second phase. A Gekko float and
gravity circuit will be installed and commissioned by the end of October 2009
to allow for maximum throughput of 350 tons per day and an estimated 91%
recovery of the high metal content material from Hollister.
    Until the Gekko float and gravity section has been commissioned, the rate
of milling will be determined by the grade of material. The mill will achieve
the designed rate of 350 tons per day on material with a contained grade 0.5
oz/ton Au and 3 oz/ton Ag or less, using a standard concentrator. In the
interim, higher grade material will be restricted to allow for extended leach
time to get optimal recovery as well as the elution of the higher metal values
from the loaded carbon.
    Construction of a new refinery at Esmeralda will coincide with a design
completion that incorporates the new state-of the-art emission controls
consistent with the Nevada Department of Environmental Protection Mercury
Control Program. Commissioning of the refinery will commence upon receipt of
the air quality Permit to Construct. In the interim, concentrate will be
refined off site.
    Capital expenditure on the refurbishment has increased as a result of an
additional upgrade cost (US$1.8 million) that would allow for the plant to be
expanded to a 700 tons per day operation in future as well as the cost (US$1.2
million) of certain additional environmental requirements which affect the
final design and construction of the mill and associated infrastructure. The
total cost of refurbishment (excluding refurbishment and commissioning of the
smelter and additional investment to upsize the mill) is forecast to be US$11
million.
    Ferdi Dippenaar, CEO commented; "We are pleased with the manner in which
the refurbishment and upgrade of the facility was completed. No problems have
thus far been encountered with the commissioning of the facility. The addition
of the flotation and gravity section will allow higher throughput and
recoveries of the high grade material being extracted at Hollister. Projected
milling costs of approximately US$110/ton, transportation included, are
significantly lower than the treatment costs currently incurred. Since
acquiring the Esmeralda mill and property, the Company has evaluated the
option of increasing the capacity of the mill to 700 tons per day. A decision
to increase the capacity of the mill will be determined by the conclusions
from the desk top study due for completion in August. This study includes a
review of the Esmeralda deposit, a past producer, to determine the potential
to re-open the mine."
    Johan Oelofse, Pr.Eng, FSAIMM, Great Basin's Chief Operating Officer, a
Qualified Person as defined by Canadian Securities Regulations in National
Instrument 43-101, has reviewed and approved the information in this news
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.





For further information:

For further information: For additional details on Great Basin 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