This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Great Basin Gold Suspends Operations At Its Burnstone Mine

Stocks in this article: GBG

VANCOUVER, Sept. 11, 2012 /PRNewswire/ - Great Basin Gold Ltd. ("Great Basin Gold" or the "Company"), (TSX: GBG; NYSE MKT: GBG; JSE: GBG) announces that it has suspended operations at the Company's Burnstone mine located in the Witwatersrand Basin of South Africa as at September 11, 2012. The suspension of all development and production activities follows a recommendation from the Company's strategic review special committee, the formation of which was announced on August 15, 2012. The recommendation is based on the Company's inability to continue funding the working capital required by Burnstone to achieve cash flow breakeven, which would have taken until May 2013 at current ramp-up rates. The Company is seeking financing for the immediate costs associated with the shut-down which are estimated in the range of $30 - $40 million dollars (inclusive of currently overdue accounts payable) together with ongoing monthly costs in the $1.2 million range for a care and maintenance program once it is developed and implemented. There is currently no certainty that such financing will be made available to the Company.

The Company also wishes to announce the resignation of Philip Kotze as a director of the Company on September 6, 2012. Mr. Kotze's contribution as a director was valuable and we thank him for it.

Lou van Vuuren, interim CEO, commented on the suspension: "While it is disappointing that operations at Burnstone had to be suspended, especially given the recently improved progress there, the Board had to take this step pending the completion of the strategic review process and potential financial restructuring. Burnstone remains a very valuable project with over 6 million ounces of gold in proven and probable reserves 1 and a forecast life of mine in excess of 25 years. The Board thanks the many dedicated and hard-working employees and contractors who contributed to bringing this project from discovery to early stage production. We believe that following the injection of sufficient new capital, this asset will demonstrate its long-term value to investors and employees."

Lou van Vuuren CEO (interim)

__________________________ 1 As per January 2011 Mineral Reserve Statement less depletion up to June 30, 2012.

Cautionary and Forward Looking Statement Information

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs