Great Basin (AMEX:GBG) Implements IT Network for Sarbanes-Oxley Compliance

Great Basin Gold (AMEX:GBG) has implemented a new IT network from Cisco (Nasdaq:CSCO) to aid them in meeting standards set by Sarbanes-Oxley.

Installing and fine-tuning the system to customize it for Great Basin Gold was Datacentrix, which provided the equipment and provided the initial network design.

Great Basin Sandton network administrator, Arnold de Bruin, said, "The network design phase took two weeks and the required Cisco networking equipment was imported from the distribution centre in Belgium. We are audited twice a year for Sarbanes-Oxley compliance and it is a complex process that needs to take place in a streamlined but highly secure environment.

"The end result is a solution that provides a full audit trail of the business in the form of logs that can be extracted from the Cisco system. It is impossible to alter or manipulate the transaction logs, offering GBG solid protection and ensuring compliance," added de Bruin.

With Great Basin about to have its second mining project commissioned later this year, the Burnstone gold mine, investors have been taking a close look with increased interest, as historically this has been a profitable time to buy miners, when they start production for the first time with a mine.

Estimated annual production is 250,000 ounces of gold, with a mine life of 19 years projected. GBG also has a major gold mine in Nevada named Hollister.

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.

Great Basin Gold (Amex:GBG) Narrows Earnings Loss, Burnstone Mine Close to Generating Revenue

Great Basin Gold (TSE:GBG) (Amex:GBG) reported earnings today, and while still suffering a earnings loss, was able to improve to a C$5 million loss in the second quarter, compared with a C$14 million loss in the same quarter last year.

Revenue also increased, rising to C$38 million, up from C$22 million in the second quarter of 2009.

After a long period of time, the permanent grid power connection to its Burnstone mine in South Africa is now in place, and according to chief executive officer Ferdi Dippenaar, should allow the mine to start generating revenue for the company in the next couple of months.

“It is clear that the situation has already improved on site...gone are the days of power outages and the subsequent impact on production and infrastructure development,” said Dippenaar to analysts.

Production estimates at the Burnstone mine are for 254,000 ounces of gold to be produced annually as a low cash cost of $319 an ounce.

Great Basin is still in the middle of its regulatory process at its Hollister gold mine in Nevada for approval to launch commercial operations.