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Wits Basin Starts the Pumps and the De-Watering of the Bates-Hunter Gold Mine is Underway; If the Historical Data is Correct, Gold Bearing Mineralization Could Be Visible Starting Near the 300 Foot Level

Posted on: Thursday, 28 July 2005, 09:00 CDT

Wits Basin Precious Minerals Inc. (OTCBB:WITM) announced today that the water treatment plant at the Bates-Hunter Gold Mine site in Central City, Colorado, has begun its final "shakedown" and the de-watering of the Bates-Hunter mine shaft is underway.

The Bates-Hunter Gold Mine was down approximately 800 feet below surface prior to its closure in 1936. Other comparative mines in the vicinity have reached depths in excess of 2,200 feet and were still in ore at the time of closure. The Bates-Hunter Gold Mine is the heart of what used to be called "Richest Square Mile on Earth" and the discovery of the Bates vein helped spark the great Colorado gold rush in the late 1800's.

In its search of historical data, Wits Basin's management discovered a report prepared by Mr. Fred Jones, E.M., dated June 15, 1939. Mr. Fred Jones, a mine engineer and former manager of the Bates-Hunter properties during the 1930's, became Colorado Commissioner of Mines from 1943-1956.

The contents of Mr. Jones letter provides a "treasure map" as the basis for the current mine de-watering program.

Under the heading "PROSPECTS" Mr. Jones stated: "To my knowledge there are three shoots of ore opened on the mine.

300 FOOT LEVEL

A streak of heavy sulphide ore is opened in the wall of the drift running west from the shaft. The length of the ore shoot could not be determined because the back of the drift is timbered and lagged. Samples taken over a length of forty feet where it was exposed showed values in gold of from .34 to 1.30 ounces per ton.

700 FOOT LEVEL

A fifty foot length of ore is opened in the bottom of 700 near the shaft. This ore slopes four feet wide and the streaks assay as follows: 1.10--0.80--0.40--1.08--1.12--4.60--3.20--3.58--3.38--3.82 ounces. There is no evidence that this ore has been opened below the 700 foot level.

800 FOOT LEVEL

The 800 foot or bottom level is well timbered and in good shape to the west breast, a distance of 440 feet. At 150 feet west of the shaft a cross vein has been opened showing ore assaying from .36 to .76 ounces gold. This vein continues west with the main vein for a distance of 165 feet where it branches off to the north. For about 50 feet before the veins separate to ore is about 10 feet wide showing values from 0.80 to 8.60 ounces gold. The sample assaying 8.60 ounces gold was taken from a large slab of ore weighing a ton or more. This slab was found in place and cracked away from the wall as the drift was cleaned. The ore is still exposed in the bottom of the drift and the samples can be verified as soon as the level is unwatered. The ore shoot in the bottom of this level is continuous from the shaft west, a distance of 440 feet. The breast of the drift is still in ore. Assays from the old muck pile in the breast ran from .68 to 1.08 ounces gold. This drift can still be driven several hundred feet to the property line. In this distance several cross veins can be expected with results comparable to the first cross vein."

Wits Basin anticipates that the Bates-Hunter shaft will be pumped down to the 300 foot mark within the next few weeks. At that time, visible inspection should be possible to verify Mr. Jones' assessment of the drift at the 300 foot level and as de-watering continues, to establish that the remainder of his report is correct as it applies to the reported significant gold findings at the 700 and 800 foot shaft levels.

Wits Basin intends to report to its shareholders as the de-watering process reveals each of the levels recorded by Mr. Jones from his 1939 report.

About Wits Basin Precious Minerals Inc.

We are a minerals exploration and development company holding interests in four 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

Certain statements contained in this press release are forward-looking in nature and are based on the current beliefs and assumptions of our management. Words like "may,""could,""should,""anticipate,""believe,""estimate,""expect,""intend,""plan,""predict," and similar expressions and their variants may be used to identify forward-looking statements. 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.

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 and mineral resources 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 and mineral resources already discovered and recovered by others in the same region of the planned areas of exploration.

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 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.

Source: Business Wire

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