Feb 23 2011
Witwatersrand Consolidated Gold Resources (JSE: WGR) (TSX: WGR) (ADR: WIWTY) has announced the completion of a revised resource model for the De Bron-Merriespruit South project in the southern Free State goldfield, South Africa.
- Indicated Resource for gold increases by 52% for the combined De Bron - Merriespruit South (DBM) project in the southern Free State goldfield
- Shallow mineralisation in multiple reefs starting at 500 metres below surface
- High grade zone of mineralisation (above a 6 g/t cut-off) between 500 and 1000 metres containing an Indicated Resource of 9.5 Mt at 7.9 g/t Au (2.4 Moz)
- Indicated Resource for by-product uranium delineated for the first time
- Further infill drilling in progress
- Independent preliminary economic assessment to be completed in April 2011
Using a cut-off grade of 3g/t Au, the Indicated Resource on the Beatrix, Kalkoenkrans, B and Leader Reefs has increased by 52% to 34.5 Mt at 5.3 g/t Au (5.9 Moz), with Inferred Resources rising 165% to 25.0 Mt at 5.2 g/t Au (4.2 Moz). These compare to the resource estimates reported in Wits Gold's National Instrument 43-101 compliant technical report dated May 2, 2010 and entitled "Technical Report on the Scoping Study for the De Bron Project, Southern Free State Goldfield, South Africa". These resources occur at depths of between 500 and 1250 metres below surface. Included within this global resource is an Indicated Resource of 9.5 Mt at 7.9 g/t Au (2.4 Moz) and an Inferred Resource of 6.8 Mt at 7.9 g/t Au (1.7 Moz) using a cut-off grade of 6 g/t. The resource model indicates that this higher grade zone occurs between 500 and 1000 metres below surface.
Wits Gold currently holds the rights to uranium only over the southern portion of the DBM area. This contains an estimated Indicated Resource of 17.0 Mt at 0.162 kg/t (6.1 Mlbs U3O8) in addition to an Inferred Resource of 11.9 Mt at 0.141 kg/t (3.7 Mlbs U3O8). The rights to uranium over the remainder of the DBM project are under application with the Department of Mineral Resources
The resource estimates for gold and uranium were undertaken during February 2011 by Snowden Mining Industry Consultants ('Snowden') following the completion of five new boreholes in the Merriespruit South area. Data from 71 boreholes drilled in the DBM area were also used in the estimation. Wits Gold controls 100% of the DBM project following the conclusion of two agreements with a subsidiary of Harmony Gold Mining Company Limited ('Harmony') in September 2010. The first agreement related to the buy back of Harmony's 40% option agreement over certain prospecting rights in the southern Free State goldfield held by Wits Gold. This transaction resulted in the issuance of 4,376,194 Wits Gold shares to Harmony. The second agreement concerned the acquisition of Merriespruit South by Wits Gold for a consideration of R61 million ($8.5 million).
Commenting on the resource estimate Wits Gold CEO, Dr Marc Watchorn said, "This substantial increase in shallow resources reported at the DBM project fully justifies Wits Gold's decision to purchase the Merriespruit South area. We are really excited by the delineation of these shallow resources which are contained in multiple reefs that are now the focus of the Company's attention".
In this light Wits Gold will immediately proceed with a preliminary economic assessment or scoping study over the DBM project. An infill drilling campaign using two drill rigs has already commenced with the objective of improving the definition of the current Inferred Resources.
Mineral Resource Statement
The updated Mineral Resource estimates for the DBM project using a cut-off grade of 3 g/t Au are set out below. They are reported in accordance with the Canadian Institute of Mining Definition Standards and the SAMREC Code. The 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 is a registered Professional Natural Scientist ("Pr.Sci.Nat.") with the South African Council for Natural Scientific Professionals ("SACNASP") and has more than 5 years of experience in gold exploration and mineral resource estimation.
Exploration activities by Wits Gold at the De Bron Mine project have been conducted under the supervision of Mr Dirk Muntingh, the Company's Competent Person and Exploration Manager. Mr Muntingh (M.Sc Geology) is a registered Pr.Sci.Nat with SACNASP and has 19 years of experience in gold exploration. Mr Muntingh has reviewed and approved this news release.
Source: Witwatersrand Consolidated Gold Resources