Wits Basin Announces Ore-Grade Gold Intercept at Bates-Hunter Gold Project
Wits Basin Precious Minerals Inc. (OTCBB:WITM) is pleased to announce that it has intersected an ore-grade gold vein on its Bates-Hunter Gold Project in Central City, Colorado. Assay results are 0.647 ounces per ton (opt) Au over a 5-foot sample interval. Within this sample interval, the highest value reported is 1.197 opt Au over 2.5 feet. The intercept is near the apparent intersection between two veins at a down-hole depth of 145-149 feet in diamond drill hole BH-06-04, a –62-degree hole drilled to the northwest on an azimuth of 280 degrees. The true width of the intersected gold vein is not known and additional diamond drilling will be required to determine this.
Wits Basin President Dr. Clyde L. Smith said, “The ore-grade intercept in diamond drill hole BH-06-04 is extremely encouraging and clearly indicates that excellent potential exists for ore-grade ore shoots in the veins now being drilled by Wits Basin on the Bates-Hunter Gold Project. At current gold prices, gold grades in excess of 0.30 opt Au over a minimum 5-foot mining width may be considered economic for underground mining. The above-mentioned 0.647 opt Au value over a 5-foot sample interval should therefore be considered potentially economic.”
Although accurate production records are not available, it has been estimated that at least 4,000,000 ounces of gold were produced in the Central City Gold District between 1859 and 1947, with approximately 95% of production prior to 1904. The district was famous for production from high-grade gold ore shoots.
Wits Basin has focused on a selected portion of the historic Central City Gold District from which approximately one-quarter of past production has come. The Company has assembled a team of four experienced exploration geologists who are now conducting the first significant modern exploration program in the District. Over the last 13 months, this team has been performing a detailed geologic study including claim surveying, geologic mapping with surveyed outcrop stations, detailed core logging, assaying of numerous mineralized intervals, compilation of historical data, diamond drilling, and state-of-the-art three-dimensional computer modeling. This intense study has revealed that past production has come from high-grade gold ore shoots located at structural intersections between three steeply-dipping vein sets. Wits Basin has identified several such structural intersections outside of and below areas of past production on the Bates-Hunter Gold Project claims that could contain ore shoots. The Company will consider these as targets for future drilling.
About the Diamond Drill Program
BH-06-04 is one of seven angle diamond drill holes, totaling 4,951 feet, now completed on the project. Five of the seven holes reached relatively shallow depths of 51-405 feet and were terminated primarily due to encountering old mine workings. Two of the holes, BH-06-02 and BH-07-07, completed at depths of 2,025 feet and 1,945 feet, respectively, were drilled to test the Bates Vein at vertical depths below the surface in excess of 1,000 feet. All seven drill holes cut additional veins as they proceeded toward the Bates Vein. The BH-06-04 ore-grade gold intercept noted above is one of seven narrow intervals in gold-bearing veins, apart from the Bates Vein, that have assayed over 0.10 opt Au.
The Wits Basin diamond drill program has focused on exploring the Bates Vein below the deepest 745-foot level of past production. Although the two deep holes completed to date (BH-06-02 and BH-07-07) did not intersect ore-grade ore shoots, the holes have cut the Bates Vein in intervals that include narrow stringer gold mineralization and broad zones of related hydrothermal alteration. Drill hole BH-07-08, which is the eighth hole now being drilled, is a wedged hole from BH-07-07, targeted at a potential ore shoot at an apparent structural intersection between the Bates Vein and two other steeply-dipping veins at a vertical depth below surface of 1,000 feet.
About the Bates-Hunter Mine
The Bates-Hunter Mine is located in Central City, Colorado, approximately 35 miles west of Denver. The Bates Vein was the second lode discovered in Colorado and helped spark the great Colorado gold rush of the mid-1800s. During the early 1930′s, the mine was still in production but was shut down due to litigation between the mine owner and operator. In 1942, a WWII production limitation order (#208) effectively shut down gold mining in the area and throughout Colorado and the United States. The nine principal veins that underlie and are controlled by the Bates-Hunter property have historically produced approximately 750,000 ounces of gold.
About Wits Basin Precious Minerals Inc.: We are a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol “WITM.” To find out more about Wits Basin Precious Minerals Inc. (OTCBB:WITM) visit our website at www.witsbasin.com.
Forward-Looking Statements and Risk Factors: The statements included in this press release concerning predictions of economic performance and management’s plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes. These risks and uncertainties include, among others, the Company’s ability to obtain or maintain regulatory approvals; the Company’s ability to obtain necessary financing; the Company’s ability to consummate the Easyknit merger; the Company’s ability to complete the various mining project acquisitions in the People’s Republic of China, which are subject to execution of final documentation, completion of due diligence and receipt of necessary financing; and other risks and uncertainties described in the Company’s filings from time to time with the Securities and Exchange Commission (the “SEC”). The Company disclaims any obligation to update its forward-looking statements.
In addition, the exploration for and development of mineral deposits involves significant financial risks, which even experience and knowledge may not eliminate, regardless of the amount of careful evaluation applied to a process. While the discovery of a mineral deposit may result in substantial rewards, few properties are ultimately developed into producing mines. Moreover, we cannot make any estimates regarding probable reserves in connection with any of our projects and any estimates relating to possible reserves are subject to significant risks. Therefore, no assurance can be given that any size of reserves or grades of reserves will be realized. If a discovery is made, the mineral deposit discovered, assuming recoverable, may differ from the reserves already discovered and recovered by others in the same region of the planned areas of exploration. Further, the cost of exploration and exploitation can be extensive and there is no assurance that we will have the resources necessary or the financing available to pursue projects we currently hold interests in or to acquire interests in other mineral exploration projects that may become available. The risks we face are numerous and detailed information regarding these risks may be found in filings made by us with the Securities and Exchange Commission, including our most recent annual report on Form 10-KSB, quarterly reports on Form 10-QSB and reports on Form 8-K.
This press release does not constitute an offer to exchange or sell or an offer to exchange or buy any securities. This document may be deemed to be solicitation material in respect of the proposed merger of Wits Basin and Easyknit.
An offer of securities in the United States pursuant to a business combination transaction will only be made through a prospectus which is part of an effective registration statement filed with the SEC. In connection with the proposed transaction, Easyknit will file a registration statement on Form F-4, which will include a proxy statement of Wits Basin that also constitutes a prospectus of Easyknit, and other documents with the SEC. Shareholders of Wits Basin are encouraged to read the definitive registration statement on Form F-4 and any other relevant documents filed or that will be filed with the SEC, including the definitive proxy statement/prospectus that will be part of the definitive registration statement on Form F-4, as they become available because they contain or will contain important information about the proposed merger. The final proxy statement/prospectus will be mailed to shareholders of Wits Basin. Investors and security holders will be able to obtain the documents free of charge at the SEC’s web site, www.sec.gov, or from Wits Basin’s Investor Relations at Lighthouse Communications (866) 739-0390 or info@lhcom.bz.
Participants in Solicitation: Wits Basin and its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Wits Basin in connection with the proposed merger. Information about the directors and executive officers of Wits Basin and their ownership of Wits Basin common stock is set forth in its Annual Report on Form 10-KSB, as filed with the SEC on April 16, 2007. Additional information regarding the interests of such participants may be obtained by reading the registration statement on Form F-4 and proxy statement/prospectus when it becomes available.