| Wed 22 Feb 2012, 15:00 | | WGR - Wits Gold - Mining Right Application accepted for Free State Projects |
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WGR
WGR
WGR - Wits Gold - Mining Right Application accepted for Free State Projects
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: MINING RIGHT APPLICATION ACCEPTED FOR FREE STATE PROJECTS
Witwatersrand Consolidated Gold Resources or "Wits Gold" (JSE&TSX: WGR; ADR:
WIWTY) is pleased to announce that the Department of Mineral Resources (DMR)
has accepted the Company`s application for a Mining Right for gold, silver
and uranium over its combined Prospecting Rights in the southern Free State
goldfield. The total area measures 14 965 hectares (149.65km2) and includes
the De Bron-Merriespruit (DBM), Bloemhoek, Robijn and Hakkies Project areas.
The granting of the Mining Right is expected over the next 12 months once the
Company complies with requirements in terms of the Minerals Act, such as
obligations in terms of feasibility studies, environmental compliance as well
as Social and Labour Plan commitments.
The Company`s DBM Project area, where mining will start at 480 metres below
surface, will be the focal point for the first phase of mining activity. A
pre-feasibility study is currently being fast-tracked at the DBM Project for
completion by May 2012, which will also provide a more detailed timeline for
the new mine`s development.
On 10 January 2012 Wits Gold reported a revised Indicated gold and uranium
Mineral Resource* of 7.5Moz (41.8Mt at 5.5g/t Au) and 8.2Mlbs U3O8 (21.7Mt at
0.17kg/t U3O8) at the DBM Project, the bulk of which is situated at depths of
between 480 and 1 000 metres below surface. This Mineral Resource includes a
high-grade zone containing 3.6Moz gold at an average grade of 8.1g/t. This
shallow mineralisation in multiple reefs at the DBM Project may also allow
for safer and more efficient mechanised mining methods.
Commenting on the acceptance of the Mining Right application, Wits Gold CEO,
Mr Philip Kotze said, "This application demonstrates Wits Gold commitment to
growth and creating value for shareholders by taking our projects up the
value chain. Our teams have done excellent work in compiling the Mining
Right application in such a short time frame. Wits Gold has been making good
progress in delivering into its new three-tiered strategy with the recent
announcement of the Evander acquisition and now taking our flagship DBM
Project to the next stage. This project has the potential to create a
significant number of new job opportunities and enhance economic growth in
the southern Free State and we are looking forward to working with the DMR to
expedite the granting of the Mining Right for the benefit of all
stakeholders".
At the end of January 2012, the Company delivered into the first leg of its
new strategy when it announced the acquisition of Evander Gold Mines Limited
(Evander) from Harmony Gold Mining Company Limited (Harmony), in a 50-50 JV
with Pan African Resources. The transaction will become effective on 2 April
2012. In the quarter ended December 2011, Harmony reported that the Evander
operations produced 27 039 ounces of gold at a cash operating cost of
R214,379/kg (US$824/oz), and an operating profit of R183,7 million (US$22.7
million).
The Evander acquisition includes a pipeline of advanced development projects
in the form of Poplar, Rolspruit and Evander South, as well as surface
tailings resources. These Evander development projects, together with Wits
Gold`s own projects, will be advanced as part of the exploration leg of the
Company`s three-tier strategy in order to move these projects up the value
curve.
*The updated Mineral Resource estimates for the DBM Project were calculated
using an accumulation cut-off of 300cm.g/t Au. These numbers are reported in
accordance with the Canadian Institute of Mining Definition Standards and the
SAMREC Code. Exploration activities by Wits Gold 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. The updated
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 verified the news release announcing the
updated Mineral Resource Estimate in the Company`s SENS announcement dated 10
January 2012.
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.
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 the Joel mine operated by Harmony.
On 31 January 2012, the Company jointly announced, with Pan African
Resources, the acquisition of the Evander Gold Mine from Harmony. Evander is
located in the Mpumalanga Province of South Africa and is situated in a sub-
basin of the main Wits Basin. In the 3 months ended December 2011 Harmony, in
their "Operating and financial results for the second quarter FY12 and six
months ended 31 December 2011" published on 6 February 2012, reported to
shareholders that the Evander operations produced 27,039 ounces of gold at a
cash operating cost of $824/oz.
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, the anticipated period in which the grant
of a mining right may be expected, and the effective date of the Evander
transaction 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
22 February 2012
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 22/02/2012 15:00:02 Produced by the JSE SENS Department.
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