WGR - 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')
JOHANNESBURG, Nov. 23, 2011 /CNW/ - 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 DBM 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 as 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 72(o )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.
Table 1: Wits Gold prefeasibility drilling results at the DBM Project
___________________________________________________________________
|BHID |Reef |Depth |Corr. |Au |Au |U3O8 |U3O8 |
| | | |Width |(g/t)|(cm.g/t)|(kg/t)|(cm.Kg/t)|
|______|_____________|_______|______|_____|________|______|_________|
|DWN30 |Beatrix |1477.12| 60.16| 1.72| 103.67| 0.037| 2.24|
|______|_____________|_______|______|_____|________|______|_________|
|DWN30 |Kalkoenkrans |1478.83|108.20| 3.10| 335.09| 0.044| 4.78|
|______|_____________|_______|______|_____|________|______|_________|
|DWN30 |B Reef |1492.95| 87.17| 0.08| 7.40| 0.21| 1.59|
|______|_____________|_______|______|_____|________|______|_________|
|DWN30 |Leader Reef |1517.89| 65.86|14.28| 940.33| 0.822| 54.16|
|______|_____________|_______|______|_____|________|______|_________|
| | | | | | | | |
|______|_____________|_______|______|_____|________|______|_________|
|DWN31 |Beatrix |1246.56|107.47| 9.93| 1066.75| 0.056| 6.04|
|______|_____________|_______|______|_____|________|______|_________|
|DWN31 |Kalkoenkrans |1247.59|102.59| 2.76| 282.91| 0.045| 4.61|
|______|_____________|_______|______|_____|________|______|_________|
|DWN31 |B Reef |1253.82| 94.64| 2.68| 253.31| 0.01| 3.06|
|______|_____________|_______|______|_____|________|______|_________|
|DWN31 |Leader Reef |1264.46| 103.4| 3.17| 327.8| 0.170| 17.5|
|______|_____________|_______|______|_____|________|______|_________|
| | | | | | | | |
|______|_____________|_______|______|_____|________|______|_________|
|DWN32 |Beatrix | 635.24|101.52| 4.76| 483.73| 0.107| 10.81|
|______|_____________|_______|______|_____|________|______|_________|
|DWN32 |Kalkoenkrans | 638.53|107.82|11.05| 1191.62| 0.141| 15.25|
|______|_____________|_______|______|_____|________|______|_________|
|DWN32 |Leader Reef | 650.07| 86.00| 6.06| 521.38| 0.211| 18.16|
|______|_____________|_______|______|_____|________|______|_________|
| | | | | | | | |
|______|_____________|_______|______|_____|________|______|_________|
| |No reef | | | | | | |
|DWN 33|intersections| | | | | | |
| |due to | | | | | | |
| |faulting | | | | | | |
|______|_____________|_______|______|_____|________|______|_________|
| | | | | | | | |
|______|_____________|_______|______|_____|________|______|_________|
|DWN34 |B Reef | 609.76|105.11| 2.28| 239.90| 0.074| 7.77|
|______|_____________|_______|______|_____|________|______|_________|
|DWN34 |Leader Reef | 625.74| 85.61| 2.17| 185.92| 0.350| 30.01|
|______|_____________|_______|______|_____|________|______|_________|
| | | | | | | | |
|______|_____________|_______|______|_____|________|______|_________|
|MU11 |Beatrix | 811.25| 99.65| 2.44| 243.11| 0.071| 7.07|
|______|_____________|_______|______|_____|________|______|_________|
|MU11 |B Reef | 826.81|104.44| 0.12| 12.82| 0.14| 1.74|
|______|_____________|_______|______|_____|________|______|_________|
|MU11 |Leader Reef | 854.78|106.07| 9.69| 1027.68| 0.448| 47.51|
|______|_____________|_______|______|_____|________|______|_________|
| | | | | | | | |
|______|_____________|_______|______|_____|________|______|_________|
|WF4 |Beatrix | 492.46| 94.45| 3.25| 307.21| 0.056| 5.30|
|______|_____________|_______|______|_____|________|______|_________|
|WF4 |Kalkoenkrans | 492.46| 56.53| 3.07| 173.59| 0.037| 2.11|
|______|_____________|_______|______|_____|________|______|_________|
|WF4 |B Reef | 503.73|109.43| 1.58| 172.67| 0.01| 1.66|
|______|_____________|_______|______|_____|________|______|_________|
|WF4 |Leader Reef | 530.32|104.86| 0.66| 68.84| 0.039| 4.11|
|______|_____________|_______|______|_____|________|______|_________|
About the Company
Wits Gold holds 14 new order Prospecting Rights over 1 195km(2) 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.
Wits Gold
CONTACT:
Mr. Philip Kotze Mr. Hethen Hira
Chief Executive Officer Investor Relations Manager
philip@witsgold.comhethenh@witsgold.com
Tel: 27 11 832 1749
www.witsgold.com
