2nd Drill Rig to Be Mobilized; Drilling Advances at the AfriOre /Wits Basin Joint Venture on the FSC Project, South Africa
MINNEAPOLIS--(BUSINESS WIRE)--March 31, 2004--Wits Basin Precious Minerals Inc. (WITM - news) ("Wits Basin") is pleased to announce further progress in the drilling of the first drill hole in the FSC gold project in South Africa as reported by the Operator, AfriOre Limited (AFO - news) ("AfriOre").
"The drill hole is at a depth of 2,505 metres, and will continue drilling in order to intersect the remaining critical stratigraphic markers anticipated on this target. This hole is the first of three in an estimated 6,300 metres initial range-finding drill program, which aims to establish the optimum drilling site to intersect gold bearing reefs in a postulated major extension to the Witwatersrand Basin. The intention is to identify those parts of the basin where mineralized reefs could be preserved at depths of between 1,000 and 1,500 metres below surface.
The drilling has highlighted a number of additional priority targets, two of which have been selected for drilling. Accordingly, it is intended to drill the next two drill holes simultaneously and the drilling contractors, CM Skanska, have been requested to prepare a second rig for deployment to the project area. The drilling of these two holes will commence once the Section 6 prospecting permits have been issued by the Department of Minerals and Energy."
The joint venture partners continue to acquire rights to additional properties and currently hold rights to 140,323 hectares within the FSC project area, which currently covers an approximate 130km long strike length.
AfriOre is the Operator of the exploration program and Wits Basin has the right to earn a 50% interest in the FSC Project, through a total funding of US$3.5 million. To date, Wits Basin has contributed US$1.8 million with an additional payment of $300,000 due April 30, 2004.
FSC Project, SOUTH AFRICA
For the past number of years, AfriOre has worked closely with leading industry and academic consultants, all experts in Witwatersrand gold and have refined their model for locating a possible analogous Witwatersrand sedimentary superbasin.
The historic Witwatersrand Basin is host to the world's largest past and present reserves of gold. It has produced over 1.5 billion ounces of gold during the past 117 years and has an estimated one billion ounces of gold in resources and reserves remaining. During the first 100 years up to 1986, 122 mines have produced 1.2 billion ounces from 3.9 billion tonnes of ore at an average grade of 10g/t(0.29 oz/t).
The FSC exploration program aims to discover a new goldfield, similar in size to those being mined in the known Witwatersrand Basin. There, each of the seven individual goldfields has produced between 40 million ounces and 300 million ounces of gold since their discovery.
The area has excellent infrastructure and access (towns, roads, rail, water and power), limited environmental issues, no known indigenous land claims, and provision has been made to convert the rights under the new mineral act of South Africa.
About Wits Basin Precious Minerals Inc.
We are a precious minerals exploration company. We currently have interest in three projects: the FSC Project in South Africa (in which we are a passive investor), the Holdsworth Property near Wawa, Ontario, Canada and the four properties of Brazmin located in South America. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol "WITM." Wits Basin is headquartered in Minneapolis, MN with offices in Toronto, ON.
Risk Factors
Except for historical information contained herein, this news release also includes forward-looking statements. All statements regarding potential mineralization and reserves, exploration results and future objectives of ours, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. We are under no obligation to, and expressly disclaim any such obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
The exploration for and development of mineral deposits involves significant financial risks, which even experience and knowledge may not eliminate, regardless of the amount of careful evaluation applied to a process. While the discovery of a mineral deposit may result in substantial rewards, few properties are ultimately developed into producing mines. Moreover, we cannot make any estimates regarding probable reserves and mineral resources in connection with any of our projects. Therefore, no assurance can be given that any size of reserves or grades of reserves will be realized. If a discovery is made, the mineral deposit discovered, assuming recoverable, may differ from the reserves and mineral resources already discovered and recovered by others in the same region of the planned areas of exploration.
The cost of exploration and exploitation can be extensive and there is no assurance that we will have the resources necessary or the financing available to pursue projects we currently hold interests in or to acquire interests in other mineral exploration projects that may become available. The risks are numerous and detailed information regarding these risks may be found in filings made by us with the Securities and Exchange Commission, including our most recent annual report on Form 10-K, quarterly reports on Form 10-Q and reports on Form 8-K.
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