Great Basin Gold (GBG: TSX, JSE; GBN: AMEX)  is a mining company engaged in the development and exploration of gold properties. The company is currently focused on its two emerging mines with a total resource base of 23.4M Au oz, and 7.3M Au oz reserves, in the world’s two richest gold regions. The Hollister gold mine is located on the Carlin Trend in Nevada, USA and the Burnstone gold mine, is located in the Witwatersrand Basin in South Africa.

Great Basin Gold is evolving into a mid-tier gold producer through a well-defined strategy of:
• Developing gold projects and assets into high margin mining units.
• Continuing to increase our reserve and resource base through exploration.
• Acquiring companies and assets suited to expanding our business.

Hollister: Production and Growth
With reserves of 0.9M Au oz grading of .8oz/ton, we anticipate production will be 110,000Au eq oz. per year for 8 years at a cash cost of US$527/oz. Production and exceptional exploration growth at Hollister complimented by the potential of the Esmeralda property, open up possibilities for this high-grade mine to become a significant producer.
 
Burnstone: A Company Builder
Burnstone is the first new mine to open in the Witwatersrand basin for more than 30 years. This low-cost, long life, shallow depth mine has a targeted average annual production is 254,000Au oz for 25 years at a LoM cash cost of US$450 per oz. The current resource is 12.1 M oz (M&I) with substantial upside potential for later phases of development that will position Great Basin Gold as a leading mid-tier gold producer.

Exploration Growth
The recent blanket zone discovery at Hollister is a clear indication of the significant potential that could be realized at our operations in Nevada, complimented by our other mine plan targets. The recent increases in our reserves to 6.4M oz Gold at Burnstone and .9M oz Gold eq at Hollister, underscores the potential for further increases of the currently outlined resources through continued exploration. In addition, GBG has prospective exploration properties in Tanzania and Mozambique that could potentially add further value.

Cash Flow Targeted
Great Basin Gold has two emerging mines with a healthy growth production profile; 220,000 oz in 2011, 330,000 oz in 2012 and 364,000 oz in 2013. With the Hollister and the Burnstone mines targeted capacity of 364,000Au eq oz. per year, significant cash flow will be generated to strengthen the balance sheet, further grow the company and reward shareholders.

Burnstone Mine Production

Burnstone is the first new mine to open in the Witwatersrand region for more than 30 years. It is a shallow, low-cost, low-risk, long life mine, fully financed and targeted for commissioning at the end of June 2010. Anticipated annual production is 254,000Au oz at a cash cost of US$319 per oz over a 19 year mine life. The current resource is 11.6 M oz (M&I) with substantial upside potential for later phases of development that will position Great Basin Gold as a leading mid-tier gold producer.

Exploration Growth

The recent increase in reserves of 4.1M oz at Burnstone and 1.2M oz at Hollister, exemplify the real potential for increases in reserves and of the currently outlined resources through additional on-site exploration. In addition, GBG has prospective exploration properties in Tanzania and Mozambique that could potentially add further value.

Financially Sound

Great Basin Gold has a favourable debt/equity ratio and is now financed to bring the Burnstone project into commission by mid-year 2010. With the Hollister and the Burnstone mines producing ap­proximately 375,000Au eq oz. per year at full design capacity, significant cash flow will be generated to further grow the company.

Dippenaar told Mineweb that a more realistic picture of the gold property's value will be determined this year through both exploration work and the use of stronger gold ($650/ounce) and silver prices ($12/ounce). A gold price of $550/ounce and silver price of $10/ounce were used in the feasibility study for the project. At the still conservative prices of $650/ounce and $12/ounce, the project should look significantly better, he said. Current exploration work was aimed at increasing the 2 million gold equivalent resource ounces at Hollister and improving its quality. Exploration was being undertaken in the current reserve environment and included drilling in target areas, deeper drilling and exploration work just outside the Hollister block, but within mining distance. Great Basin was still in early stages of developing the Hollister block as it only took control of it less than a year ago.

The company was currently investigating whether there were more gold veins running through the property than defined yet and has already achieved success in some areas, said Dippenaar. "Without having the assay results in hand, it does look very interesting. We have come across a few very interesting intersections, but everything depends on the values." Dippenaar pointed out that much drill work had been done since a resource of 2 million ounces was declared here in April 2007 and the value of the property has increased as a result. "The value of the block has increased in just one year and there is a possibility that its value could look completely different as the exploration programme is continued for the rest of the year." Dippenaar said the company owed it to shareholders to establish what the real value of the property was. "Whether it's (Hollister) viewed as integral growth of the company or growth for another player will be decided by the future. It is too early to talk about selling, as there is so much more value to be unlocked over the next year."

Dippenaar said Great Basin also hopes to release updated reserves for its Burnstone project in South Africa in April this year by considering a new gold price of $650/ounce and exchange rate of R8 against the US dollar. "We hope this will have an impact on reserves at Burnstone where resources have increased dramatically to 11 million ounces in the measured and indicated category (from 7.7m ounces in June 2007) and 2 million ounces in the inferred."

Dippenaar said the company would establish through exploration work in area four over the next year if production ounces at Burnstone could be increased. Burnstone was now one step closer to the mining method of longwall stoping which involved a high level of mechanisation. Great Basin starts production later this year and the mine will ultimately produce an average of 254,000 ounces annually."

HOLLISTER PROPERTY - NEVADA, USA

In 1997, Great Basin Gold acquired Newmont's 75% interest in the Hollister Gold Property (formerly known as the Ivanhoe Gold Property) in Nevada for US$6 million. Two years later, the company increased its interest to 100% through purchase of the stake held by Touchstone Resources. Great Basin Gold explored the property from 1997-2001, outlining gold resources in the Clementine, Gwenivere and South Gwenivere vein systems and also indicating excellent additional exploration potential. Great Basin Gold now owns 100% of the Hollister Mine Property.

In mid-2002, Great Basin Gold entered into earn-in and joint operating agreements with Hecla Mining Company to undertake the underground access and exploration program at its Hollister Property, to complete the development and to operate the mine. Hecla had the option to earn a 50% working interest in the Block, constituting some 5% of the property by funding a US$21.8 million advanced exploration and development program, leading to commercial production. In addition, Hecla would pay Great Basin Gold a revenue royalty that escalated with the gold price.

On 20 February 2007, the company entered into an agreement with Hecla whereby Great Basin Gold purchased their “earned in to date” interest in the Hollister Development Block. The purchase consideration of US$ 60 million was payable as US$ 45 million in cash and US$ 15 million in shares. The agreement was closed on the 19th of April 2007, thereby giving GBG 100% ownership of the project.