| Wed 23 Nov 2011, 16:00 | | WGR- Witwatersrand Consolidated Gold Resources Limited - Wits Gold |
|
WGR
WGR
WGR- Witwatersrand Consolidated Gold Resources Limited - Wits Gold
completes diamond drilling and fast tracks Prefeasibility Study at the DBM
Project
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 completes diamond drilling and fast tracks Prefeasibility Study
at the DBM Project
Wits Gold is pleased to announce that it has successfully completed a
prefeasibility diamond drilling programme of 7 boreholes at the shallow De
Bron - Merriespruit (DBM) Project near Virginia in the southern Free State
goldfield. SGS Laboratories South Africa (Pty) Limited, an ISO accredited
laboratory, carried out the split-core testing.
Drilling was completed on schedule and on budget at the end of September
2011 and proved highly successful in all respects, achieving all the aims
of the Company, namely:
- to more accurately locate the De Bron Fault, which forms the
western limit of the DBM orebody
- to position the subcrop of the reefs below the Karoo Unconformity
, which forms the eastern limit of the orebody
- to infill drill a gap area in the northwestern portion of the DBM
Project area
- to consolidate and increase the areas where gold grades are
greater than 7g/t
Commenting on these latest drilling results, Wits Gold Executive: Mineral
Reserves and Resources, Dirk Muntingh said, "We are very pleased with the
information obtained from the latest drilling programme. These positive
results are likely to increase the average gold grade and size of the
shallow Indicated Resource at DBM, which is the primary aim of the
Company". An update of the Resource Estimate by Snowden Mining Industry
Consultants (Snowden) is currently underway and is expected to be completed
during December 2011.
The recent phase of drilling was designed specifically to convert most of
the high-grade (> 7g/t) Inferred Resources into the Indicated category by
more accurately defining the positions of the reef subcrop and the De Bron
Fault, as well infill drilling a gap area. Previously, substantial high-
grade resources along the De Bron Fault and along the reef subcrops against
the Karoo Unconformity were categorised as Inferred only, due to the lack
of information, which has now been provided by this drilling programme.
Two boreholes, DWN30 and DWN31 were drilled to locate the position of the
De Bron Fault, while four boreholes WF4, DWN32, DWN33 and DWN34 were
drilled to more accurately position the reef subcrops. One hole, MU11, was
drilled as an infill hole in the northwest of the project area, where a
wide gap between existing boreholes was present. DWN30 did not intersect
the De Bron Fault and drilled through the normal up-thrown block succession
into reef, proving that the fault is located at least 250 metres further
west than previously anticipated. DWN31 intersected the De Bron Fault 565
metres above the Beatrix Reef. Projecting a measured westerly dip of 72o to
reef elevation provided an accurate location for the fault-reef
intersection, which also shows the De Bron Fault to be further west than
previously anticipated. These two boreholes, therefore, conclusively define
an increased extent of the mineralised area. Both boreholes intersected
high-grade reef, with the Leader Reef in DWN30 returning an average gold
grade of 14.28g/t over 65.86cm for 941cm.g/t, while the
Beatrix/Kalkoenkrans Reef in DWN31 yielded an average grade of 9.92g/t over
107.47cm for 1066cm.g/t.
The infill hole, MU11, returned an average gold grade of 10.52g/t over
108.69cm for 1143cm.g/t within a carbon-rich facies of the Leader Reef.
Boreholes WF 4 and DWN 32 intersected the Beatrix/Kalkoenkrans Reef and
Leader Reef packages just within their respective subcrops, while DWN34 was
drilled between the Beatrix/Kalkoenkrans Reef subcrop and the Leader Reef
subcrop which served to more accurately position these features. DWN 32
returned an average of 11.06g/t gold over 107.47cm for 1192cm.g/t for the
Beatrix/Kalkoenkrans Reef. DWN33 did not intersect reef due to faulting.
The complete set of average assay results is shown in Table 1 at the end of
this news release.
The latest geological information provided by the above mentioned drilling
has been used to update the Company`s 3-dimensional geological model at
DBM. Turgis Mining Consultants will use the new Resource figures to
complete the Prefeasibility Study currently in progress at the DBM Project.
The associated rock engineering and metallurgical studies as well as the
Environmental Impact Assessments are currently underway. The Prefeasibility
Study is scheduled for completion in the second quarter of next year.
Exploration activities by Wits Gold at the DBM Project have been conducted
under the supervision of Mr. Dirk Muntingh, the Company`s Competent Person
and Executive: Mineral Reserves and Resources. Mr. Muntingh (M.Sc Geology)
is a registered Pr.Sci.Nat with SACNASP and has over 19 years of experience
in gold exploration. Mr. Muntingh has reviewed and approved this news
release. Information concerning the geology, mineral occurrences, nature of
mineralisation, rock types, quality assurance and quality control measures
applied, geological controls, sampling data, analytical testing procedures,
names of analytical laboratories used and the key assumptions, parameters
and methods used in connection with exploration results disclosed herein
are communicated in the National Instrument 43-101 report entitled
"Witwatersrand Consolidated Gold Resources Limited: Mineral Properties in
the DBM Project, South Africa", prepared by George Gilchrist of Snowden
dated April 2011 which is available on SEDAR at www.sedar.com and the
Company`s website.
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
23 November 2011
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Table 1: Wits Gold prefeasibility drilling results at the DBM Project
BHID Reef Depth (m) Corr Width Au (g/t)
DWN 30 Beatrix 1477.12 60.16 1.72
DWN 30 Kalkoenkrans 1478.83 108.20 3.10
DWN 30 B Reef 1492.95 87.17 0.08
DWN 30 Leader Reef 1517.89 65.86 14.28
BHID Reef Au (cm.g/t) U3O8 U3O8
(kg/t) (cm.kg/t)
DWN 30 Beatrix Reef 103.67 0.037 2.24
DWN 30 Kalkoenkrans 335.09 0.044 4.78
DWN 30 B Reef 7.40 0.21 1.59
DWN 30 Leader Reef 940.33 0.822 54.16
BHID Reef Depth (m) Width (cm) Au (g/t)
DWN 31 Beatrix Reef 1246.56 107.47 9.93
DWN 31 Kalkoenkrans 1247.59 102.59. 2.76
DWN 31 B Reef 1253.82 94.64 2.68
DWN 31 Leader Reef 1264.46 104.4 3.17
BHID Reef Au (cm.g/t) U3O8 U3O8
(kg/t) (cm.kg/t)
DWN 31 Beatrix Reef 1066.75 0.056 6.04
DWN 31 Kalkoenkrans 282.91 0.045 4.61
DWN 31 B Reef 253.31 0.01 3.06
DWN 31 Leader Reef 327.8 0.170 17.5
BHID Borehole D11 Depth (m) Width (cm) Au (g/t)
DWN 32 Beatrix Reef 635.24 101.52 4.76
DWN 32 Kalkoenkrans 638.53 107.82 11.05
DWN 32 Leader Reef 650.07 86.00 6.06
BHID Reef Au (cm.g/t) U3O8 U3O8
(kg/t) (cm.kg/t)
DWN 32 Beatrix Reef 483.73 0.107 10.81
DWN 32 Kalkoenkrans 1191.62 0.141 15.25
DWN 32 Leader Reef 521.38 0.211 18.16
DWN 33 No reef intersections due to faulting
BHID Reef Depth (m) Width (cm) Au (g/t)
DWN 34 B Reef 609.67 105.11 2.28
DWN 34 Leader Reef 625.74 85.61 2.17
BHID Reef Au (cm.g/t) U3O8 U3O8
(kg/t) (cm.kg/t)
DWN 34 B Reef 239.90 0.074 7.77
DWN 34 Leader Reef 185.92 0.350 30.01
BHID Reef Depth (m) Width (cm) Au (g/t)
MU11 Beatrix Reef 811.25 99.65 2.44
MU11 Kalkoenkrans 826.81 104.44 0.12
MU11 Leader Reef 854.78 106.07 9.69
BHID Reef Au (cm.g/t) U3O8 U3O8
(kg/t) (cm.kg/t)
MU11 Beatrix Reef 243.11 0.071 7.07
MU11 Kalkoenkrans 12.82 0.14 1.74
MU11 Leader Reef 1027.68 0.448 47.51
BHID Reef Depth (m) Width (cm) Au (g/t)
WF4 Beatrix 492.46 94.45 3.25
WF4 Kalkoenkrans 492.46 56.53 3.07
WF4 B Reef 503.73 109.43 1.58
WF4 Leader Reef 530.32 104.86 0.66
BHID Reef Au (cm.g/t) U3O8 U3O8
(kg/t) (cm.kg/t)
WF4 Beatrix 307.21 0.056 5.30
WF4 Kalkoenkrans 173.59 0.037 2.11
WF4 B Reef 172.67 0.01 1.66
WF4 Leader Reef 68.84 0.039 4.11
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 STATEMENTS
Certain statements in this news release may constitute forward-looking
information within the meaning of securities laws. 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", "likely",
"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. Without limitation, statements about the timing of the updated
Resource Estimate and Prefeasibility Study at the DBM project, and other
related statements are forward-looking information.
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: 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; labor 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; the ability to maximize 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 document or to reflect the occurrence of unanticipated
events except where required by applicable laws.
Date: 23/11/2011 16:00:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
