| Tue 10 Jan 2012, 15:00 | | WGR - Witwatersrand Consolidated Gold Resources Limited - Wits Gold |
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WGR
WGR
WGR - Witwatersrand Consolidated Gold Resources Limited - Wits Gold
announces an increase in indicated gold and uranium at their shallow DBM
Project
Witwatersrand Consolidated Gold Resources Limited
(`Wits Gold` or the `Company`)
Incorporated in the Republic of South Africa
(Registration Number 2002/031365/06)
JSE Share Code: WGR ISIN: ZAE000079703
TSX Share Code: WGR CUSIP Number: S98297104
WITS GOLD ANNOUNCES AN INCREASE IN INDICATED GOLD AND URANIUM RESOURCES AT
THEIR SHALLOW DBM PROJECT
- Indicated Resource for gold increases by 27% for the De Bron -
Merriespruit (DBM) Project
- Shallow mineralisation in multiple reefs commencing at 480 metres
below surface
- High grade zone of mineralisation (above a 600cm.g/t cut-off) now
contain an Indicated Resource of 13.8Mt at 8.1g/t Au (3.6Moz
Au),an increase in ounces of 50% over that previously reported
- Uranium Indicated Resource (above a gold cut-off of 300cm.g/t)
increases by 35% to 21.7Mt at 0.17kg/t U3O8(8.2Mlbs U3O8)
- Independent pre-feasibility study on track for completion in May
2012
Witwatersrand Consolidated Gold Resources or "Wits Gold" (JSE&TSX: WGR;
ADR: WIWTY) is pleased to announce a revised Mineral Resource model for the
De Bron-Merriespruit (DBM) Project in the Southern Free State goldfield,
South Africa. This follows the completion of an 11-hole pre-feasibility
drilling programme, the results of which were released in a SENS
announcement dated 23 November 2011.
The previous Mineral Resource Estimate, released in February 2011, was used
by Turgis Consulting (Pty) Limited ("Turgis") to complete a preliminary
economic assessment or scoping study at the DBM Project. The results of
this positive scoping study, undertaken independently by Andrew Pooley (the
"Qualified Person") from Turgis with the participation of George Gilchrist
and Chris Jones from Snowden Mining Industry Consultants ("Snowden"), were
outlined in a SENS announcement released on 23 June 2011. The Independent
NI43-101 Technical Report dated 5 August 2011, entitled "Preliminary
Assessment of the De-Bron-Merriespruit Project (DBM Project), South Africa"
can be viewed at www.sedar.com and on the Wits Gold website.
The scoping study was undertaken on the Indicated Resource only and did not
include some 40% of the total DBM Mineral Resource that was classified as
an Inferred Resource. The Turgis scoping study recommended an appropriate
drilling programme be undertaken with the aim of converting the Inferred
Resource into the Indicated category for pre-feasibility study purposes.
The results from the latest drilling were used to revise the Mineral
Resource model at the DBM Project during December 2011 by Snowden. A NI43-
101 technical report is being finalised and will be filed on SEDAR at
www.sedar.com within 45 days.
Using an accumulation cut-off of 300cm.g/t Au, the Indicated Resource on
the Beatrix, Kalkoenkrans, B and Leader Reefs has increased by 27% to
41.8Mt at 5.5g/t Au (7.5Moz Au),with Inferred Resource commensurately
decreasing by 19% to 19.5Mt at 5.4g/t Au (3.4Moz Au). These compare to the
Resource Estimates disclosed in Wits Gold`s NI43-101 compliant technical
report dated April 6, 2011 and entitled "Witwatersrand Consolidated Gold
Resources Limited: Mineral Properties in the DBM Project, South Africa",
prepared by George Gilchrist of Snowden which is available on SEDAR at
www.sedar.com and the Wits Gold website.
Included within the updated global Mineral Resource is an Indicated
Resource of 13.8Mt at 8.1g/t Au (3.6Moz Au) and an Inferred Resource of
5.5Mt at 8.1g/t Au (1.4Moz Au) using an accumulation cut-off of 600cm.g/t.
The resource model indicates that the bulk of this higher grade zone occurs
between 480 and 1000 metres below surface.
Wits Gold currently holds the rights to uranium over the southern portion
of the DBM Project area only. This contains an estimated Indicated Resource
(reported above a gold accumulation cut-off of 300cm.g/t) of 21.7Mt at
0.17kg/t U3O8 (8.2Mlbs U3O8) in addition to an Inferred Resource of 12.5Mt
at 0.17 kg/t (4.6Mlbs U3O8). The total uranium content has increased by
some 31% from the previously reported figures, partly due to the granting
of uranium rights over the Floriana area in the east. The viability of
producing uranium as a by-product will be considered in the pre-feasibility
study. The rights to uranium over the Merriespruit portion of the DBM
Project are under application with the Department of Mineral Resources.
Commenting on the revised resource model Wits Gold CEO, Mr Philip Kotze
said, "This significant increase in the Indicated Resource reported at the
DBM Project proves the robustness of this shallow deposit. The coherent
higher grades at shallow depth imply higher initial returns, which mean
quicker capital payback. We are eagerly anticipating the outcome of the pre-
feasibility study, and remain confident that the DBM Project will
demonstrate exceptional returns for our investors".
Mineral Resource Statement
The updated Mineral Resource Estimate for the DBM project using an
accumulation cut-off of 300cm.g/t Au are set out below. They are reported
in accordance with the Canadian Institute of Mining Definition Standards
and the SAMREC Code. The Mineral Resource Estimate was prepared by George
Gilchrist, who is a full time employee of Snowden and independent of Wits
Gold. Mr Gilchrist is a Qualified Person as defined by National Instrument
43-101. Mr Gilchrist (B.Sc Geology) is a registered Professional Natural
Scientist ("Pr.Sci.Nat.") with the South African Council for Natural
Scientific Professionals ("SACNASP") and has more than 11 years of
experience in gold exploration and Mineral Resource estimation. Mr
Gilchrist has verified the information contained in this news release. The
independent technical report will be filed on SEDAR at www.sedar.com within
45 days.
Indicated Gold Indicated Inferred Gold Inferred Uranium
Resources Uranium Resources Resources Resources
Mt Mt Grade Mt Mt Grade
Grade Moz (kg/t) Mlbs Grade Moz (kg/t) Mlbs
(g/t) (g/t)
41.8 5.5 7.5 21.7 0.17 8.2 19.5 5.4 3.4 12.5 0.17 4.6
Exploration activities by Wits Gold at the DBM Project have been
conducted under the supervision of Mr Dirk Muntingh, the Company`s
Qualified Person and Exploration Manager. Mr Muntingh (M.Sc Geology)
is a registered Pr.Sci.Nat with SACNASP and has 20 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 or testing
procedures and the names of analytical laboratories used are communicated
in Wits Gold`s filed NI 43-101 Independent Technical Report dated April 6,
2011, entitled "Witwatersrand Consolidated Gold Resources Limited: Mineral
Properties in the DBM Project, South Africa", prepared by George Gilchrist
of Snowden Mining Industry Consultants which can be viewed at
www.sedar.com.
Forward Looking Information
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", "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 a pre-feasibility study 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; 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; 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 document or to reflect the occurrence of unanticipated
events except where required by applicable laws.
For further information please contact:
Philip Kotze Hethen Hira
Chief Executive Officer Executive: Investor Relations
Tel: +27 11 832 1749 Tel: +27 11 832 1749
www.witsgold.com
Johannesburg
10 January 2012
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 10/01/2012 15:00:01 Produced by the JSE SENS Department.
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