| Tue 1 Nov 2011, 15:10 | | WGR - Wits Gold - Wits Gold enters into agreements to acquire additional |
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WGR
WGR
WGR - Wits Gold - Wits Gold enters into agreements to acquire additional
Prospecting Rights
Witwatersrand Consolidated Gold Resources Limited
(Incorporated in the Republic of South Africa)
Registration Number 2002/031365/06
JSE Code: WGR
ISIN: ZAE000079703
TSX Code: WGR
CUSIP Number: S98297104
(`Wits Gold` or `the Company`)
Wits Gold enters into agreements to acquire additional Prospecting
Rights adjacent to its Bloemhoek and DBM Projects, southern Free State
goldfield
Wits Gold wishes to announce that it has signed agreements with Taung
Gold (Taung) and Randgold and Exploration Group (R&E Group) to acquire
prospecting rights in South Africa`s southern Free State goldfield.
The Taung Prospecting Right comprises the farms Richelieu 135 and Plecy
82, measuring 652 hectares, and is located immediately south of the
Company`s Bloemhoek Project area. It is anticipated that the properties
could contain the southern high-grade extension to the Kalkoenkrans Reef
channel modeled at Bloemhoek. An initial borehole is planned to confirm
the geological model, post which the Bloemhoek pre-feasibility study,
completed in October 2009, will be updated.
The agreement with R&E Group concerns their Prospecting Right over the
farms Tweepan 678 and Millo 639, measuring 355 hectares, located
immediately north of the Bloemhoek Project area and west of the De Bron
Merriespruit (DBM) Project area. Available historic data over these
properties will be added to Wits Gold`s geological model in order to
plan an appropriate drilling programme.
Commenting on the acquisitions, CEO, Philip Kotze, said, "The location
of these properties will serve to further consolidate our Prospecting
Rights in the southern Free State, following the acquisition of the
Merriespruit South area from Harmony last year. The Company`s geological
models indicate extensions to the reefs from the Bloemhoek and DBM
Projects are highly likely, and a drilling programme to confirm this is
currently being planned. These properties would not sustain standalone
mining operations, but access to these potential resources from planned
infrastructure at DBM and Bloemhoek would enhance the financial returns
for both projects."
The acquisition price of R3 million to Taung Gold and R1.5 million to
R&E Group will be payable once consent to transfer the Prospecting Right
to Wits Gold is obtained from the Minister of Mineral Resources in terms
of Section 11 of the Mineral and Petroleum Resources Development Act.
For further information please contact:
Mr. Philip Kotze Mr. Hethen Hira
Chief Executive Officer Executive :Investor Relations
philip@witsgold.com hethenh@witsgold.com
Tel: +27 11 832 1749
www.witsgold.com
Johannesburg
1 November 2011
About the Company
Wits Gold holds 14 new order Prospecting Rights over 1 195km2 in the
southern Free State, Potchefstroom and Klerksdorp goldfields. The
Company is currently focused on fast-tracking two advanced projects, DBM
and Bloemhoek, located next to each other in the southern Free State
goldfield and adjacent to the Beatrix mine operated by Gold Fields, and
Joel, operated by Harmony.
Forward Looking Information
Certain statements in this news release may constitute forward-looking
information within the meaning of securities laws. Such statements
include the payment of the acquisition price, consent being obtained
from the Minister of Mineral Resources in terms of Section 11 of the
Mineral and Petroleum Resources Development Act, the possibility of any
extension to the reefs from the Bloemhoek and DBM Projects into the
Taung Prospecting Right and the R&E Group Prospecting Right, and the
potential enhancement of the financial returns for the Bloemhoek and DBM
Projects. 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.
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: not
obtaining the necessary consent from the Minister of Mineral Resources
in terms of Section 11 of the Mineral and Petroleum Resources
Development Act; that the reefs from the Bloemhoek and DBM Projects do
not extend into the Taung Prospecting Right and the R&E Group
Prospecting Right, or that even if the reefs do extend into such
Prospecting Rights that they cannot be accessed from the planned
infrastructure at DBM and Bloemhoek, or that they cannot be economically
accessed in any event; 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; and
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 news release or to reflect the occurrence of
unanticipated events except where required by applicable laws.
Date: 01/11/2011 15:10:17 Produced by the JSE SENS Department.
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