Wits Basin Provides Update on Exploration Projects
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 14, 2005--Wits Basin Precious Minerals Inc. "Wits Basin" (WITM - news) is pleased to provide the following updates on certain of its exploration projects.
FSC Project - South Africa
The operator, AfriOre Limited, recently reported that at the Witwatersrand-type FSC gold project, drilling has resumed on drillhole BH 48, after the December recess and the drillhole is currently at a depth of 1868 meters. BH 48 has drilled through the younger Karoo rocks to a depth of 1644 meters and is currently drilling in Proterozoic cover rocks which, in the main Witwatersrand basin, immediately overlie the gold bearing upper part of the stratigraphy of the Witwatersrand rocks. Previous drilling by other companies, intersected unmineralized lower Witwatersrand rocks in the area of BH 48. The geophysical model for the area indicates an opening of a basin from the area of these Witwatersrand intersections towards BH 48, where there is an enhanced probability of intersecting gold mineralization, if the upper part of the Witwatersrand stratigraphy is preserved. Drilling will continue through to the end of January when the drilling progress will be re-assessed.
The Department of Minerals and Energy has advised AfriOre that it has been granted a Prospecting permit over an additional priority area of some 52,603 hectares (129,980 acres) within the FSC project area.
The aim of the exploration at the FSC Project, which is being conducted by AfriOre Limited (AFO - news) 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 an extension to the Witwatersrand Basin mineralized gold reefs.
McFaulds Project - Northern Ontario, Canada
Wits Basin recently farmed out a portion of its interest in 5 mining claims (1,295 ha) in the McFaulds Lake area of northern Ontario currently held under option by an affiliate, Hawk Precious Minerals Inc. to McDonald Mines Ltd. The Company has recently been advised by McDonald that it has completed its first drill hole of a three drill hole campaign on an airborne geophysical target. Assays are awaited on a number of samples that have been submitted for analysis. Wits Basin will retain a 31.5% working interest in the claims upon completion of the McDonald program.
The McFaulds Lake area in the James Bay Lowlands of northern Ontario is the site of a new VMS (volcanogenic massive sulphide) base metals play. The optioned claims are located to the south and west of the original Spider/KWG claim group where they have announced in their press releases of February 19 and 23, and May 11, 2004, the following drilling results: 13.8m of 5.5% copper including 4.63m of 10.4% copper; a second hole returned 15.0m of 4.06% copper including 3.31m of 9.98% copper and a third hole of 8.0m of 6.5% copper, 3.45% zinc, 0.42 g/t gold and 15.5 g/t silver; and in their release of November 8, 2004 an 18.8m massive sulphide intersection grading 8.02% copper.
Hunter Gold Mine - Central City, Colorado
Wits Basin received an extension from Hunter Gold (until January 31, 2005) in order to complete its due diligence process on acquiring the option for exploration rights of this Colorado gold project. Wits Basin anticipates that it will be able to complete its review of the information and, if satisfied with its review, close on this transaction on or before January 31, 2005.
Completion of Private Placement
On January 7, 2005, Wits Basin completed a private placement of units (the "Units") of its securities, each Unit consisting of one share of the its common stock and a warrant to purchase one-half share of common stock at an exercise price of $0.25 per share. Wits Basin received approximately $2.46 million after related expenses. Wits Basin filed Current Reports on Form 8-K on December 16, 2004 and January 10, 2005 relating to this offering.
About Wits Basin Precious Minerals Inc.
Wits Basin is a minerals exploration company currently holding interests in three gold and base metal exploration projects. The FSC Project (approximately 180,000 +ha) is located in South Africa adjacent to the major goldfields discovered at the Witwatersrand Basin. To date Wits Basin has earned a 35% equity interest in Kwagga Gold (Propriety) Limited ("Kwagga"), a subsidiary of AfriOre International (Barbados) Ltd. ("AfriOre") by investing $2.1M to date. Kwagga holds the exploration and mining rights to the FSC Project. AfriOre is the operator of the FSC Project. Wits Basin retains the right to increase its equity ownership in Kwagga to 50% with a future investment of $1.4M. Wits Basin also holds exploration rights to certain lands (304 ha) near Wawa, Ontario, Canada, referred to as the "Holdsworth Project." Wits Basin is currently reviewing its options with regard to further exploration and/or development of the Holdsworth Project.
Wits Basin 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.
tinyurl.com |
