Vancouver – Great Basin Gold (GBG-T) has lined up a black economic empowerment (BEE) group for involvement on its Burnstone gold project in the northeastern portion of South Africa’s Witwatersrand Basin.
Tranter Investments, the BEE, will partner with Great Basin thus fulfilling the country’s new mineral tenure laws requiring participation by a BEE in projects through a minority ownership.
Under terms and conditions of the agreement, Tranter may acquire an interest in Great Basin’s subsidiary, which owns Burnstone, and the BEE must undertake to restructure its shareholder base to include a wider range of historically disadvantaged groups. Great Basin had a previous agreement with Tranter that expired in early-2003.
A number of drill rigs have been active on the Burnstone project, which is undergoing a feasibility study. Several deposits at Burnstone have a composite measured and indicated resource of 45.2 million tonnes grading 5 grams gold per tonne (over 7.2 million oz. contained).
A late-2004 pre-feasibility on the Area 1 deposit envisioned a 1.5-million tonne per year operation producing about 236,000 oz. of gold annually. The feasibility study is examining project economics of an increased production rate.
Great Basin has 92.1-million shares outstanding and posts a $97 million market capitalization. The company recently trades in the $1.05 per share range, at the bottom if its 52-week range of $1.05-2.12.
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