Wednesday, August 11, 2010

Great Basin Gold (Amex:GBG) Narrows Earnings Loss, Burnstone Mine Close to Generating Revenue

Great Basin Gold (TSE:GBG) (Amex:GBG) reported earnings today, and while still suffering a earnings loss, was able to improve to a C$5 million loss in the second quarter, compared with a C$14 million loss in the same quarter last year.

Revenue also increased, rising to C$38 million, up from C$22 million in the second quarter of 2009.

After a long period of time, the permanent grid power connection to its Burnstone mine in South Africa is now in place, and according to chief executive officer Ferdi Dippenaar, should allow the mine to start generating revenue for the company in the next couple of months.

“It is clear that the situation has already improved on site...gone are the days of power outages and the subsequent impact on production and infrastructure development,” said Dippenaar to analysts.

Production estimates at the Burnstone mine are for 254,000 ounces of gold to be produced annually as a low cash cost of $319 an ounce.

Great Basin is still in the middle of its regulatory process at its Hollister gold mine in Nevada for approval to launch commercial operations.

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