GREAT BASIN GOLD LTD., a member of the Hunter Dickinson group of Vancouver, has optioned the Burnstone gold project from a private South African company, Southgold Exploration. Great Basin can earn up to 100% of Southgold, which has the right to acquire an 80% interest in the project. The Burnstone project covers 400 km2 of the Witwatersrand gold field in South Africa.
Great Basin can exercise its option and complete its purchase of Southgold by making cash, share and share purchase warrant payments totalling US$3.25 million in two stages. Great Basin has also agreed to spend US$1.5 million on infill drilling on the property. It hopes to move the project quickly through feasibility and development toward large-scale production. The Burnstone deposit has indicted and inferred resources totalling 34.67 million tonnes grading 15.54 g/t Au, or 17.13 million contained ounces of gold. It is situated only 100 km from Johannesburg.
Learn more about the Hunter Dickinson group of companies at www.hdgold.com