File picture: Jacky Naegelen File picture: Jacky Naegelen
Great Basin Gold, the international miner which is focused on two main projects - the Hollister Mine in Nevada and the Burnstone Mine in South Africa - is expecting to produce between 110,000 and 140,000 ounces of gold from Burnstone in 2011.
Speaking at the Mining Indaba in Cape Town, Chief Operating Officer Johan Oelofse said the group would focus on ramping up production at Burnstone.
Because it focused on shallow mining - at Burnstone mining took place at 350 metres - the company did not have the added costs associated with deep level mining, so cash costs averaged $450/oz.
Burnstone, which poured its first gold at the end of October 2010, had mineral reserves of 20 million ounces.
Oelofse said by late January, the plant had moved into full production. The life of mine was currently 26 years.
Oelofse noted that the mine had had Eskom power supply since January 2010, with the first phase of power supply completed by August last year. A second line was in construction and should be completed by mid year.
Generators were still on site as back up, he added.
The group had a pipeline of projects which included grassroots projects in Tanzania and Mozambique. - I-Net Bridge