Company announcements
Wits Gold reports drilling results; fast tracks Prefeasibility Study at DBM Project
23 November 2011
Wits Gold (or the “Company”) is pleased to announce encouraging assay results following the completion of drilling at its shallow De Bron – Merriespruit (DBM) Project in the southern Free State goldfield. Drilling was completed on schedule and on budget at the end of September 2011. The average gold and uranium values along with detailed geological interpretations are reported in the Company’s JSE Limited SENS announcement released today. The announcement has also been filed on www.sedar.com and is available on the Wits Gold website.
Key results from the drilling programme include:
- the high-grade intersection of the Leader Reef in borehole DWN30 averaging 14.28g/t over 65.87cm for 941cm.g/t and the Beatrix/Kalkoenkrans Reef in borehole DWN 31 averaging 9.92g/t over 107cm for 1 066cm.g/t;
- an enhanced understanding of the geology and gold distribution within the shallow DBM orebody, where the reefs commence at 480 metres below surface;
- confirmation that the DBM orebody extends over a larger area than previously estimated; and
- the higher average grades intersected are expected to result in an upgrade of the current DBM Resource Estimate.
Commenting on these latest drilling results, Wits Gold Executive Mineral Reserves and Resources, Dirk Muntingh said, “We are very pleased with the information obtained from the latest drilling programme. These positive results are likely to increase the average gold grade and size of the shallow Indicated Resource at DBM, which was the primary aim of this drilling programme. Our knowledge of the DBM orebody continues to grow and as the Prefeasibility Study shifts into full swing, we remain excited by the opportunities available to us with this orebody.”
An update of the Resource Estimate by Snowden Mining Industry Consultants (Snowden) is currently underway and is expected to be completed during December 2011.
The recent phase of drilling was designed specifically to convert most of the high-grade (> 7g/t) Inferred Resources into the Indicated category by more accurately defining the positions of the reef subcrop and the De Bron Fault, which form the eastern and western limits of the DBM orebody respectively. Infill drilling was undertaken in the northwestern part of the project area. Previously, substantial high-grade resources along the De Bron Fault and along the reef subcrops against the Karoo Unconformity were categorised as Inferred only, due to the lack of information, which has now been provided by this drilling programme.
Two boreholes, DWN30 and DWN31, were drilled to locate the position of the De Bron Fault, while four boreholes, WF4, DWN32, DWN33 and DWN34, were drilled to more accurately position the reef subcrops. One hole, MU11, was drilled as an infill hole in the northwest of the project area, where a wide spacing between existing boreholes was present.
DWN30 did not intersect the De Bron Fault and drilled through the normal up-thrown block succession into reef, proving that the fault must be located at least 250 metres further west than previously anticipated. DWN31 intersected the De Bron Fault 565 metres above the Beatrix Reef, which also served to confirm that the De Bron Fault is further west than previously anticipated, therefore conclusively defining an increased extent of the mineralised area. Both boreholes intersected high-grade reef, with the Leader Reef in DWN30 returning an average gold grade of 14.28g/t over 65.86cm for 941cm.g/t, while the Beatrix/Kalkoenkrans Reef in DWN31 yielded an average grade of 9.92g/t over 107.47cm for 1 066cm.g/t.
The infill hole, MU11, returned an average gold grade of 10.52g/t over 108.69cm for
1 143cm.g/t within a carbon-rich facies of the Leader Reef. Boreholes WF4 and DWN32 intersected the Beatrix/Kalkoenkrans Reef and Leader Reef packages just within their respective subcrops, while DWN34 was drilled between the Beatrix/Kalkoenkrans Reef subcrop and the Leader Reef subcrop, which served to more accurately position these features. DWN 32 returned an average of 11.06g/t gold over 107.47cm for 1 192cm.g/t for the Beatrix/Kalkoenkrans Reef. DWN33 did not intersect reef due to faulting. The complete set of average results from each borehole is available on the Company’s website in the latest SENS announcement.
The latest geological information provided by these boreholes has been used to update the Company’s 3-dimensional geological model at DBM. Turgis Mining Consultants will use the geological model and new Resource figures from Snowden to complete the Prefeasibility Study currently in progress at the DBM Project. The associated rock engineering and metallurgical studies, as well as the relevant Environmental Impact Assessments, are currently underway. The Prefeasibility Study is scheduled for completion in the second quarter of next year.
For further information please contact:
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Mr. Philip Kotze Mr. Hethen Hira Johannesburg |
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About the Company
Wits Gold holds 14 new order Prospecting Rights over 1 195km2 in the southern Free State, Potchefstroom and Klerksdorp goldfields, with total resources of 156Moz Au and 268Mlbs U3O8. The Company is currently focused on fast-tracking two advanced projects, DBM and Bloemhoek, located next to each other in the southern Free State goldfield and adjacent to the Beatrix mine operated by Gold Fields, and Joel, operated by Harmony.
Forward Looking Information
Certain statements in this news release may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by use of terms such as “may”, “will”, “should”, “expect”, “believe”, “plan”, “scheduled”, “intend”, “estimate”, “forecast”, “predict”, “potential”, “continue”, “likely”, “anticipate” or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management’s future outlook and anticipated events or results, and may include statements or information regarding the future plans or prospects of the Company. Without limitation, statements about upgrades to the DBM Resource Estimate, the timing of the updated Resource Estimate and Prefeasibility Study at the DBM project, and other related statements are forward-looking information.
Forward-looking information involves known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward looking information. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa; decreases in the market price of gold; hazards associated with underground and surface gold mining; the ability to attract and retain qualified personnel; labor disruptions; changes in laws and government regulations, particularly environmental regulations and mineral rights legislation including risks relating to the acquisition of the necessary licences and permits; changes in exchange rates; currency devaluations and inflation and other macro-economic factors; risk of changes in capital and operating costs, financing, capitalization and liquidity risks, including the risk that the financing required to fund all currently planned exploration and related activities may not be available on satisfactory terms, or at all; the ability to maximize the value of any economic resources. These forward-looking statements speak only as of the date of this news release.
You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events except where required by applicable laws.