Tuesday, September 7, 2010

Great Basin Gold (AMEX:GBG): Time to Buy?

Market timing isn't a good strategy of investors in the best of times, and in volatile times it's even more risky. In the case of Great Basin Gold (AMEX:GBG) though, it could be the perfect time, as they're ready to get both of their mines up and running, and that is usually the most profitable entry point for acquiring shares in a gold miner.

The two mines owned by Great Basin Gold include the Hollister mine in Nevada and the Burnstone mine in South Africa.

When the two mines are at full production, the Hollister mine will produce about 120,000 ounces of gold equivalents a year, while the Burnstone mine will at full production produce about 250,000 ounces of gold a year for Burnstone Mine.

The Burnstone mine is close to coming online, as they've finally connected to the Eskom electrical grid in the early part of August, and production should begin this quarter.

One thing to keep in mind about the South African Burnstone project is there are more risks there than with its Hollister mine from a geopolitical standpoint, and so that has to be watched.

But for now, it looks like a good point of entry for investors who don't mind some risk in the gold sector.

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