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WGR- Wits Gold announces updated shallow resources at the DBM project
Witwatersrand Consolidated Gold Resources Limited
(`Wits Gold` or `the Company`)
Incorporated in the Republic of South Africa
(Registration Number 2002/031365/06)
JSE Share Code: WGR ISIN: ZAE000079703
TSX Share Code: WGR CUSIP Number: S98297104
WITS GOLD ANNOUNCES UPDATED SHALLOW RESOURCES AT THE DBM PROJECT
- Indicated Resource for gold increases by 52% for the combined De Bron -
Merriespruit South (DBM) project in the southern Free State goldfield
- Shallow mineralisation in multiple reefs starting at 500 metres below
surface
- High grade zone of mineralisation (above a 6 g/t cut-off) between 500 and
1000 metres containing an Indicated Resource of 9.5 Mt at 7.9 g/t Au (2.4
Moz)
- Indicated Resource for by-product uranium delineated for the first time
- Further infill drilling in progress
- Independent preliminary economic assessment to be completed in April 2011
Witwatersrand Consolidated Gold Resources or "Wits Gold" (JSE&TSX: WGR/ ADR:
WIWTY) is pleased to announce the completion of a revised resource model for the
De Bron-Merriespruit South (DBM) project in the southern Free State goldfield,
South Africa. Using a cut-off grade of 3g/t Au, the Indicated Resource on the
Beatrix, Kalkoenkrans, B and Leader Reefs has increased by 52% to 34.5 Mt at 5.3
g/t Au (5.9 Moz), with Inferred Resources rising 165% to 25.0 Mt at 5.2 g/t Au
(4.2 Moz). These compare to the resource estimates reported in Wits Gold`s
National Instrument 43-101 compliant technical report dated May 2, 2010 and
entitled "Technical Report on the Scoping Study for the De Bron Project,
Southern Free State Goldfield, South Africa". These resources occur at depths of
between 500 and 1250 metres below surface. Included within this global resource
is an Indicated Resource of 9.5 Mt at 7.9 g/t Au (2.4 Moz) and an Inferred
Resource of 6.8 Mt at 7.9 g/t Au (1.7 Moz) using a cut-off grade of 6 g/t. The
resource model indicates that this higher grade zone occurs between 500 and 1000
metres below surface. A National Instrument 43-101 compliant technical report is
being finalised and will be filed on SEDAR at www.sedar.com within 45 days.
Wits Gold currently holds the rights to uranium only over the southern portion
of the DBM area. This contains an estimated Indicated Resource of 17.0 Mt at
0.162 kg/t (6.1 Mlbs U3O8) in addition to an Inferred Resource of 11.9 Mt at
0.141 kg/t (3.7 Mlbs U3O8). The rights to uranium over the remainder of the DBM
project are under application with the Department of Mineral Resources
The resource estimates for gold and uranium were undertaken during February 2011
by Snowden Mining Industry Consultants (`Snowden`) following the completion of
five new boreholes in the Merriespruit South area. Data from 71 boreholes
drilled in the DBM area were also used in the estimation. Wits Gold controls
100% of the DBM project following the conclusion of two agreements with a
subsidiary of Harmony Gold Mining Company Limited (`Harmony`) in September 2010.
The first agreement related to the buy back of Harmony`s 40% option agreement
over certain prospecting rights in the southern Free State goldfield held by
Wits Gold. This transaction resulted in the issuance of 4,376,194 Wits Gold
shares to Harmony. The second agreement concerned the acquisition of
Merriespruit South by Wits Gold for a consideration of R61 million ($8.5
million).
Commenting on the resource estimate Wits Gold CEO, Dr Marc Watchorn said, "This
substantial increase in shallow resources reported at the DBM project fully
justifies Wits Gold`s decision to purchase the Merriespruit South area. We are
really excited by the delineation of these shallow resources which are contained
in multiple reefs that are now the focus of the Company`s attention".
In this light Wits Gold will immediately proceed with a preliminary economic
assessment or scoping study over the DBM project. An infill drilling campaign
using two drill rigs has already commenced with the objective of improving the
definition of the current Inferred Resources.
Mineral Resource Statement
The updated Mineral Resource estimates for the DBM project using a cut-off grade
of 3 g/t Au are set out below. They are reported in accordance with the Canadian
Institute of Mining Definition Standards and the SAMREC Code. The Resource
Estimate was prepared by George Gilchrist, who is a full time employee of
Snowden and independent of Wits Gold. Mr Gilchrist is a Qualified Person as
defined by National Instrument 43-101. Mr Gilchrist is a registered Professional
Natural Scientist ("Pr.Sci.Nat.") with the South African Council for Natural
Scientific Professionals ("SACNASP") and has more than 5 years of experience in
gold exploration and mineral resource estimation. Mr Gilchrist has verified the
information contained in this news release. The independent technical report
will be filed on SEDAR at www.sedar.com
Indicated Gold Indicated Inferred Gold Inferred Uranium
Resources Uranium Resources Resources Resources
Mt Mt Grade Mt Mt Grade
Grade Moz (kg/t) Mlbs Grade Moz (kg/t) Mlbs
(g/t) (g/t)
5.3 5.9 17.0 0.16 6.1 25.0 5.2 4.2 11.9 0.14 3.7
34.5
Exploration activities by Wits Gold at the De Bron Mine project have been
conducted under the supervision of Mr Dirk Muntingh, the Company`s Competent
Person and Exploration Manager. Mr Muntingh (M.Sc Geology) is a registered
Pr.Sci.Nat with SACNASP and has 19 years of experience in gold exploration. Mr
Muntingh has reviewed and approved this news release.
Information concerning the geology, mineral occurrences, nature of
mineralisation, rock types, quality assurance and quality control measures
applied, geological controls sampling data, analytical or testing procedures,
the names of analytical laboratories used and the key assumptions, parameters
and methods used in connection with the updated Mineral Resource estimates are
communicated in Wits Gold`s filed NI 43-101 compliant Independent Technical
Report dated May 2, 2010, entitled "Technical Report on the Scoping Study for
the De Bron Project, Southern Free State Goldfield, South Africa", which can be
viewed at www.sedar.com.
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", "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 the timing of a
preliminary economic assessment or scoping study 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; labour
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,
capitalisation 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 maximise 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.
For further information please contact:
Marc Watchorn Hethen Hira
Chief Executive Officer Investor Relations
Tel: +27 11 832 1749 Tel: +27 11 832 1749
www.witsgold.com
Johannesburg
22 February 2010
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 22/02/2011 14:00:01 Supplied by www.sharenet.co.za
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