JOHANNESBURG (miningweekly.com) – Great Basin Gold (GBG) continues to face challenges in the production build-up programme at its Burnstone mine in South Africa, it reported on Monday, as production from the mine fell 6 000 oz short of its revised guidance.

The mine, near Balfour, produced 23 361 oz of gold in the year ended December 31. Fourth-quarter output remained flat at 6 470 oz.

“Although we are looking forward to a continued improved year-on-year performance at Burnstone, we will continue to examine production guidance in the light of our experiences in 2011,” said CEO Ferdi Dippenaar.

However, the TSX- and JSE-listed company reported that it had increased confidence in its 24- to 30-month mine plan for Burnstone, following the completion of 19 051 m of infill drilling from surface and 7 966 m from underground on January 31. It said no significant faults were intersected during the drilling, which started in the first quarter of 2011.

With the improvement in the understanding of the mine’s orebody, owing to the infill drill results, and the progress made in improving the underground infrastructure, the company believed it would see a better 2012.

Infill drilling would continue over the medium to longer term.

Burnstone mine’s ore development increased by 4% from 2 786 m in the third quarter, to 2 900 m in the fourth quarter of 2011, while the m² of stoping available increased by 42% quarter-on-quarter.

“With the improved information on geological structures being applied to planned development, waste development metres a quarter decreased by 48% from levels reported in first quarter of 2011 to 1 083 m in the fourth quarter,” GBG said in a statement.

Quarter-on-quarter, ore development rates and production from stoping were less than planned in December. This was attributed to the Christmas break, as well as unusually high seasonal rainfall leading to the underground flooding of a number of development ends through fissures.

The focus on a more low-profile ore development than high-profile ore development during the period resulted in combined development and stoping-contained mined grade improving by 23% from 1.22 g/t in the third quarter to 1.50 g/t in the fourth quarter.

GBG also reported that, in January, the Department of Water Affairs granted a water use licence authorising the completion of the 88 kV power line between the Grootvlei power station and the Burnstone mine. This would provide a permanent feed of 51 MVa power to the site.

Meanwhile, GBG said its Nevada operations produced 97 610 gold equivalent ounces from trial mining activities in the year, compared with 95 186 oz in 2010, and against a forecast of 100 000 oz. Fourth-quarter output was 20 727 oz, down from 26 045 oz in the third quarter.

“As previously indicated, the high-grade nature of the Hollister orebody can lead to quarterly grade fluctuations, and this occurred in this quarter,” the company explained.

GBG’s financial results for the year ended December 31 were expected to be released by the end of March.
 

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