Wits Basin Reports Prospecting Permission Granted and Drilling Recommences at South African FSC Project
MINNEAPOLIS--(BUSINESS WIRE)--Oct. 25, 2004--
Wits Basin Precious Minerals Inc. (WITM - news) is pleased to announce that it has been advised by its FSC joint venture partner, AfriOre Limited (AF - news) ("AfriOre") that the South African Department of Minerals and Energy ("DME") has granted permission to prospect on the newly acquired area of the FSC Project. Drilling operations have resumed at Drillhole BH 48 in a high priority target area, which has been interpreted to be underlain by Witwatersrand type rocks. This target is one of the two priority targets identified after a review of data from the recently completed Drillhole BH 47 and other geophysical and drilling data within the FSC Project area. Application has also been made to the DME for a permit to drill the second priority target.
The results of BH 47, which we announced on June 30, 2004, confirmed the existence of the overlying cover rock stratigraphies, similar to those in the Witwatersrand Basin, thereby confirming the initial geological model. A compilation of this newly acquired data, together with all the existing data in the AfriOre data set, including existing drill information, seismic, magnetic and gravity data, has defined two high priority targets, which are extensions of the original target area drilled at BH 47.
The recent aeromagnetic interpretation has identified regional structures, which are considered to be similar to those in the Welkom Goldfield, situated to the north, within the main Witwatersrand Basin. The Welkom Goldfield has produced some 300 million ounces since it was first discovered in the 1950's. The entire Witwatersrand Basin has produced some 1.5 billion ounces since it was first discovered in the mid 1880's with some one billion ounces still estimated to be in reserve. The Witwatersrand Basin is and has been the most significant gold producing region on the planet.
Data from gravity and seismic surveys also indicates that the two priority target areas have basin configurations below the cover rock with strike lengths of 20 kilometers and 30 kilometers, respectively. Previous drilling by other companies within the priority areas, have intersected lower Witwatersrand type rocks which, in the main Witwatersrand Basin underlie the gold bearing reefs hosted by the upper Witwatersrand rocks. The two drill sites selected are considered to have the highest potential to intersect upper Witwatersrand type rocks in a range of between 1,400 and 1,700 meters. The planned drilling depth at BH 48 is 2,000 meters and is estimated to take some four months to complete.
As a result of this recent re-interpretation, rights to an additional 24,242 hectares have been optioned or applied for, bringing the total land package either under option, license or application to some 196,700 hectares (approximately 485,679 acres).
Vance White, CEO of Wits Basin said, "I'm pleased to get the program back on track and grateful for the cooperation between AfriOre management and the South African DME officials for all their collective efforts in securing the appropriate operating permits under the New Minerals Legislation for this multi-million dollar venture. With the re-interpretation of the recent drilling and data available, we believe that this is a better opportunity now than when we first became involved."
About Wits Basin Precious Minerals Inc.
Wits Basin is a minerals exploration company. In addition to the FSC Project, Wits Basin has exploration interests in the Holdsworth gold property near Wawa, the VMS base metals project in area of McFaulds Lake (both properties located in Ontario, Canada) and has entered into a letter of intent on the Bates-Hunter Gold Mine in Central City, Colorado. 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 and any estimates relating to possible reserves are subject to significant risks. 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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