Idea Implementation Delivery
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Great Basin Gold – A Global Mining Company idea implementation delivery Great Basin Gold began with people who saw the potential value, and believed in an idea... ...With tenacity, expertise and dedication, GBG has crossed the threshold and is now implementing the production phase. The abstract has become real... ...and a powerful vision of delivery in the future is driving its development and growth. Responsible Delivery Contents Preliminary Notes 01 Our Culture 02 Corporate Profile 04 Corporate Structure 06 Overview and Performance Summary 08 Chairman’s Letter 09 Chief Executive Officer’s Review 11 Health and Safety 13 Review of Operations Burnstone 16 Hollister 32 Other Projects 51 Leadership Development and People 61 Environmental Management 64 Corporate Social Responsibility 69 Directors and Executives 77 Corporate Governance 86 Strategic Risks 97 Glossary 115 This Annual Report includes certain statements that may be deemed forward-looking statements and forward-looking information. This Annual Report is based on certain United States securities filings. Accordingly, we advise that these forward-looking statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this Annual Report, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects to take place in the future are forward-looking statements or information. Although the Company believes the expectations expressed in such forward-looking statements or information are based on reasonable assumptions, such statements or information are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements or information. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for gold and silver, exploitation and exploration successes, continued availability of capital and financing and general economic, market, business, or governmental conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements or information. Annual Report 2009 Idea, Implementation, Delivery Preliminary Notes INCORPORATION OF CONTINUOUS DISCLOSURE for the fiscal years ended December 31, 2009 and at www.sedar.com. All financial information in this Annual DOCUMENTS BY REFERENCE 2008, together with the auditors’ reports thereon, Report is prepared in accordance with Canadian GAAP. In this Annual Report, “the Company”, “we”, “us”, “GBG” interim consolidated financial statements, reconciliations or “Great Basin Gold” refers to Great Basin Gold Limited to United States (US) Generally Accepted Accounting The foregoing documents have been filed publicly by and all its subsidiaries together, unless the context otherwise Principles (GAAP), proxy circulars, news releases and Great Basin Gold, paper copies of which are available clearly requires. other continuous disclosure documents. These documents on request from the offices of Great Basin Gold or on the are available for review on the System for Electronic SEDAR website indicated above. See also our audited Consolidated Financial Statements Document Analysis and Retrieval (SEDAR) website located CURRENCY AND METRIC EQUIVALENTS METRIC UNITS MULTIPLY BY IMPERIAL UNITS All currency amounts in this Annual Report are stated in Canadian Dollars (CAD) unless otherwise indicated. hectares 2.471 = acres Conversion of metric units into imperial equivalents is meters (m) 3.281 = feet (ft) as follows: kilometers (km) 0.621 = miles (5,280ft) grams 0.032 = troy ounces (oz) tonnes 1.102 = short tons (2,000lbs) grams/tonne (g/t) 0.029 = troy ounces/ton (oz/ton) Currency conversions used herein are based on December 31, 2009, published by the Bank of Canada as follows: US$1 = CAD1.05 The following table sets forth: Years Ended December 31 (i) the rate of exchange for the CAD, expressed in US Dollars (US$), in effect at the end of the periods 2009 2008 2007 indicated; Rate at end of period 0.9515 0.8166 1.0120 (ii) the average of exchange rates in effect on the last day of each month during such periods; and Average rate for period 0.8760 0.9381 0.9304 (iii) the high and low exchange rates during such periods, High for period 0.9716 1.0289 1.0905 each based on the noon rate of exchange as reported by the Bank of Canada for conversion of CAD into US$. Low for period 0.7692 0.7711 0.8437 The following table sets forth: Years Ended December 31 (i) the rate of exchange for the South African Rand (ZAR) expressed in US$, in effect at the end of the periods 2009 2008 2007 indicated; Rate at end of period 0.1355 0.1071 0.1457 (ii) the average of exchange rates in effect on the last day of each month during such periods; and Average rate for period 0.1218 0.1229 0.1419 (iii) the high and low exchange rates during such periods, High for period 0.1378 0.1483 0.1551 as reported by the Bank of Canada. Low for period 0.0939 0.0886 0.1332 The following table sets forth: Years Ended December 31 (i) the rate of exchange for ZAR, expressed in CAD, in effect at the end of the periods indicated; 2009 2008 2007 (ii) the average of exchange rates in effect on the last day Rate at end of period 0.1418 0.1311 0.1440 of each month during such periods; and Average rate for period 0.1362 0.1299 0.1523 (iii) the high and low exchange rates during such periods, as reported by the Bank of Canada. High for period 0.1502 0.1514 0.1692 Low for period 0.1195 0.1108 0.1415 Idea Implementation Delivery 1 Great Basin Gold Annual Report 2009 Our Culture COMMITTED to “THINK, SAY, Do” • We uphold the principle of Responsible Delivery and therefore we are responsible to all our stakeholders. • We value honesty, integrity, respect and trust. • We engage, communicate, develop and deliver. • We focus on ideas, growth, development and creating value. • We strive to maintain an open, honest and diverse environment that encourages mutual respect. • We build high-performance teams focused on safe and responsible delivery. • Our approach is problem elimination based on high levels of employee engagement and commitment. • We get involved to make a difference. OUR PLEDGE • Our people are our greatest differentiator. • Safety remains paramount and central to all that we do; we relentlessly pursue zero harm. • We are guided by our core values of respect, trust, honesty and integrity for people, our local communities and the environment. • Our workplace allows stakeholders to say: “This is our mine, the best place to work, a place where diversity is nourished and where communities are engaged in true developmental partnership. We are truly world class.” • We share one vision, one dream and one reality, and ensure we deliver what we promise. Idea Implementation Delivery 3 Great Basin Gold Annual Report 2009 Responsible Delivery Corporate Profile “When we started our Company, we made a decision to ensure that we had a strong ability to manage projects. We established a corporate business intelligence office for planning, reporting and managing information and, on the frontline, we established exchange rooms for planning and reporting on a technical level. The idea is to have business information available to all. It is work in progress, but we believe it is something which makes Great Basin Gold different.” Louis Scheepers, Project Management Executive Annual Report 2009 Idea, Implementation, Delivery 4 Corporate Profile Idea Implementation Delivery IMPLEMENTING AND DELIVERING At the Hollister Property, an ore processing facility which the ON IDEAS underground exploration and Company has been refurbishing. The Great Basin Gold is an “emerging development program is underway Company has not prepared a technical producer” mining company engaged to conduct trial mining and to obtain report in respect of the Esmeralda in the acquisition, exploration and bulk samples to help confirm a Property as it is not considered material development of precious metal feasibility analysis done in 2007 and no significant exploration work is deposits. The Company currently has and updated in 2009. currently budgeted for it. two material projects, both of which are at the trial mining stage, namely: At the Burnstone Property, an initial The Company is also conducting early- feasibility study was completed in stage exploration on a number of other • the Hollister gold project, located on 2006, followed by an optimized prospects, primarily in Africa. the Carlin Trend in Nevada, United feasibility study completed in 2007 States of America (USA); and and updated in October 2009. The We currently do not have any • the Burnstone gold project, development of an access decline, commercial mining operations. acquired in 2002, located in the surface infrastructure, vertical and Revenues generated during 2009 Witwatersrand Basin goldfields in the ventilation shafts and a metallurgical are attributable to gold and ore sales Republic of South Africa (RSA). plant is now nearing completion. from the ore extracted during the trial mining activities conducted at the Updated technical reports were filed A second Nevada property, Hollister Property. for both the Hollister Property and Esmeralda, was acquired in the Burnstone Property in November December 2008 for US$2 million 2009, available on Great Basin’s and the assumption of the existing profile at www.sedar.com. environmental bond, primarily for its Above: Esmeralda Mill, Nevada 5 Great Basin Gold Annual Report 2009 Responsible Delivery Corporate Structure STRUCTURED TO DELIVER We were incorporated under the name Sentinel Resources Ltd on March 19, 1986, under the laws of the province of British Columbia, Canada. From that date through 1997, we underwent various mergers and acquisitions and became Great Basin Gold Limited with our final merger on December 31, 1997.