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WGR
WGR
Wits Gold - Increase in Gold resources due to additional Prospecting Rights
Witwatersrand Consolidated Gold Resources Limited
(formerly Basfour 2759 (Pty) Limited)
(Incorporated in the Republic of South Africa)
Registration Number 2002/031365/06
JSE Code WGR
ISIN ZAE000079703
(`Wits Gold" or `the Company")
INCREASE IN GOLD RESOURCES REPORTED BY WITS GOLD DUE TO ADDITIONAL PROSPECTING
RIGHTS IN THE POTCHEFSTROOM AND KLERKSDORP GOLDFIELDS
Wits Gold today announced that the Company has been granted two additional
prospecting rights for gold in the North West and Free State Provinces in terms
of Section 17 of the Minerals and Petroleum Resources Development Act, Act 28 of
2002.
In the Potchefstroom Goldfield a prospecting right for gold has been granted
over 9 804 hectares, covering various portions of the farms Boschhoek 393 IQ,
Buffelsvlei 383 IQ, Opleiding 626 IQ, Gerhardminnebron 139 IQ, Nauuwpoort 385
IQ, Oudedorp 376 IQ, Stompoorfontein 391 IQ, Turffontein 126 IQ, Vyfhoek 428 IQ,
Witkoppiesfontein 392 IQ, Witpoort 419 IQ and Byl 421 IP, situated within the
Magisterial Districts of Potchefstroom, Ventersdorp and Klerksdorp. This
prospecting right serves to consolidate the area previously held by Wits Gold in
the Potchefstroom Goldfield, so that prospecting rights for gold held by the
Company in this region presently covers a total of 54 462 hectares. These rights
are valid for a period of five years until 2011.
A SAMREC compliant resource estimate was previously completed by Snowden Mining
Industry Consultants (Snowden) for the Company"s prospecting right in the
Potchefstroom Goldfield. This formed part of a Competent Person"s Report that
was included in the Wits Gold Prospectus prepared for the Company"s primary
listing on JSE Limited on 24th April, 2006. This report calculated that an
Inferred Resource of 65.2Moz of gold was contained in a combination of
Witwatersrand reefs occurring in the Bird and Main Reef Formations as well as
the VCR. More recently, Snowden have estimated that the new prospecting right
contains an additional Inferred Resource of 10.6Moz of gold, so that the total
Inferred Resource attributable to Wits Gold in the Potchefstroom Goldfield is
now 75.8Moz of gold.
A second prospecting right has also been granted over 1 230 hectares in the Free
State Province where it covers various portions of the farms Fraaiuitzicht 189,
Kleinfontein 369 and Golden Vaal 562 in the Magisterial District of
Viljoenskroon.
This new prospecting right serves to consolidate the area previously held by
Wits Gold in the Klerksdorp Goldfield, so that prospecting rights for gold held
by the Company in this region now cover a total of 13 302 hectares. These rights
are also valid for a period of five years until 2011.
A SAMREC compliant resource estimate was previously completed by Snowden for the
Company"s prospecting right in the Klerksdorp Goldfield. This study calculated
that an Inferred Resource of 33.3Moz of gold was contained in the Vaal Reef.
Subsequently, Snowden have estimated that the new prospecting right contains an
additional Inferred Resource of 6.2Moz of gold, so that the total Inferred
Resource attributable to Wits Gold in the Klerksdorp Goldfield is now 39.5Moz of
gold.
In addition to these resources in the Potchefstroom and Klerksdorp Goldfields,
Wits Gold also holds prospecting rights in the Southern Free State Goldfield.
Consequently, the Company has now been granted eight prospecting rights in
various parts of the Witwatersrand Basin, covering 90 825 hectares. These
combined areas contain a total Inferred Resource of 158.8Moz of gold in addition
to 134.7 million lbs of U3O8.
The immediate exploration strategy for Wits Gold is to add value through
improved resource definition. This will be achieved partly by the refinement of
geological models based on the diamond drill core obtained from the Harmony JV,
Gold Fields and AngloGold Ashanti. This core includes information from 203
boreholes containing 2 882 reef intersections. In addition, the Company has
plans to undertake further drilling initially in five of the higher grade,
shallower (500-2500 metres below surface) areas where recognised auriferous
conglomerates have previously been intersected. Three of these priority targets
are situated in the Southern Free State Goldfield where they contain an Inferred
Resource of 24.7Moz Au, whilst the other two areas with an Inferred Resource of
18.2Moz Au occur in the Potchefstroom Goldfield. In the Klerksdorp Goldfield, a
review of the acquired seismic and borehole data will enable the Company to
develop an exploration strategy for this region. The objective of the
exploration programme will be to progress at least one project to the pre-
feasibility stage within the next three years.
Johannesburg
23 June 2006
Date: 26/06/2006 07:00:03 AM Produced by the JSE SENS Department
