Wits Basin Announces Completion on First `Range-Finding' Drill Hole at FSC Gold Project
MINNEAPOLIS--(BUSINESS WIRE)--June 8, 2004--Wits Basin Precious Minerals Inc. (WITM - news) is pleased to announce the completion of the first drill hole in a "range-finding" program in the FSC Project in South Africa, as reported by the operator and joint venture partner, AfriOre Limited (AFO - news) ("AfriOre"). The drill hole, which was drilled in the southern structural block to a depth of 2,984 meters, intersected a well developed succession of lower Proterozoic rocks before it was terminated in a zone of shearing. Core from the drill hole has been logged in detail and numerous analyses have been undertaken on samples from selected lithologies intersected in the drill hole. This data is currently being collated and reinterpreted in association with other drilling and geophysical data.
Although the drill hole was not successful in intersecting Witwatersrand rocks to the depths drilled, it has provided valuable information which will refine target selection elsewhere in the southern structural block and in other areas within the 140,000 hectare landholding. Two additional regional targets have been highlighted as a result of the recent drilling and drill sites have been selected. Drilling will commence in these areas once the required operating permits have been obtained.
The aim of the exploration at the FSC Project, which is being conducted by AfriOre and funded in part by Wits Basin, is to discover a major extension of the Witwatersrand basin. The "range-finding" drilling program, which commenced after a comprehensive geophysical survey, aims to identify the optimum position to discover mineralized gold reefs in a Witwatersrand basin extension.
AfriOre and its subsidiaries 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$2.025 million with an additional payment of $75,000 due June 30, 2004, which will secure a 35% ownership in the Project.
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 where 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.
Wits Basin is a precious minerals exploration company. In addition to the FSC Project, Wits basin has exploration interests in five properties: the Holdsworth Property near Wawa, Ontario, Canada and the four properties located in South America held by its subsidiary, Brazmin Ltda. Wits Basin's common stock trades on the Over-the-Counter Bulletin Board under the symbol "WITM." Wits Basin is headquartered in Minneapolis, MN with an office in Toronto, ON.
Forward-Looking Statements and Risk Factors
Certain statements contained in this press release that are forward-looking in nature are based on the current beliefs and assumptions of our management. When used in this press release, the words "may," "could," "should," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict," and similar expressions and their variants may be used to identify forward-looking statements. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes.
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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