Hollister Project - Introduction

[ ] Great Basin Gold Ltd. (GBG) owns the Hollister Mine and operates it through the wholly owned subsidiary Rodeo Creek Gold, Inc. The property is located in northern Nevada on the Carlin Trend gold belt within the historic Ivanhoe Mining District. The mine is located on the western edge of the Northern Nevada Rift, a major north-northwest trending structural zone that has localized middle Miocene volcanic rocks and numerous epithermal gold deposits. The precious metal deposits are low-sulfidation epithermal systems characterized by banded quartz veins with electrum and silver selenides. The Hollister Mine will employ the selective underground mining method of cut and fill. This will be combined with split shooting (resuing mining method) to optimize recovery and reduce dilution. The focus of mining will be on extraction of ?ounces? from the narrow-veins rather than trying to maximize tons. The initial drifts will be excavated along the strike of the vein and then capped with a substantial concrete sill pillar. Back stoping with hand held drills will be used to selectively mine the vein. The stopes will be backfilled with waste rock material. With every lift, an 18 inch concrete cap will be poured onto the backfill waste rock to prevent gold values from being lost into the fill. Targeted ore production rate will be over 400 tons per day. With current ore reserves, project life is estimated to be around eight years; however, Hollister geologists view the site as one of the most prospective systems for bonanza vein deposits in Nevada. Approximately $14