Great Basin Gold (GBG) has suspended operations at its loss-making Burnstone mine located in the Witwatersrand basin south of Johannesburg.
The Vancouver-based gold miner made the announcement on Tuesday‚ and said that the suspension of all development and production activities‚ effective as of last night‚ followed recommendations made in August 12‚ by the company’s strategic review special committee.
“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 said.
Great Basin Gold added it had embarked on a process of raising 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‚” the company said.
For the moment Great Basin Gold was uncertain as to whether this financing would be made available to the company. - I-Net Bridge