MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin Precious Minerals Inc. (OTCBB:WITM)
is pleased to announce that the Company has acquired two additional
parcels of land in the immediate vicinity of the Bates-Hunter Mine. This
acquisition includes related minerals rights. Wits Basin previously
announced in its January 22, 2007 Business Development Update its
intention to acquire additional land in the surrounding areas.
�Now
that we have successfully acquired two adjacent parcels, we plan to
continue moving forward on acquisitions of additional properties in the
immediate area,� stated CEO Stephen D. King. �We are in negotiations with several other property
owners. We believe it would be in our collective best interest for those
other property owners to join our already assembled critical mass that we
have obtained at Bates-Hunter. We are hopeful that the landowners of the
smaller properties will see the benefits of joining with us as these
other two property owners have understood and done.�
About the Surface Drill Exploration Program
The Wits Basin diamond drill program has focused on exploring the Bates
Vein below the deepest 745-foot level of past production. The Company has
drilled seven angle diamond drill holes totaling over 5,000 feet.
On October 16, 2007, the Company announced that it had intersected an
ore-grade gold vein at Bates-Hunter. The assay results were 0.647 ounces
per ton (opt) Au over a 5-foot sample interval. Within this sample
interval, the highest value reported was 1.197 opt Au over 2.5 feet. This
sample is consistent with the 27 samples reported by Harry Williamson in
the 1930s from the deepest 745-foot level workings of the Bates-Hunter
Mine that averaged 1.37 opt Au. 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.
�Wits Basin�s four-man
geological team has conducted an exhaustive, state-of-the-art geological
study of the veins in the Bates-Hunter Mine area. This study is the first
of its kind to have ever been conducted in the Central City Gold
District. Results of the study have revealed several potential
gold-bearing ore shoot targets at structural intersections between the
three past-productive veins in the district. These targets require
diamond drilling,� remarked Wits Basin President
Dr. Clyde Smith.
The eighth hole now being drilled on the property is BH-07-08 and is a
wedged hole from BH-07-07. BH-07-08 is 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. As a result of the previously announced geological findings, 12
additional drill targets have been identified.
All of the samples that have been taken from the Bates-Hunter Mine have
been quite instrumental in building the 3-D model of the drilling
progress. To see a short video of this 3-D modeling, please click here
(http://www.witsbasin.com/images/BH07-0708-17-20078sm.avi)
or visit the Company�s website at www.witsbasin.com.
About the Bates-Hunter Mine
The
Bates-Hunter Mine is located in the Central City Mining District
approximately 35 miles west of Denver, CO. The Bates Vein was the second
lode discovered in Colorado and helped spark the great Colorado Gold Rush
of 1859. While accurate production records are not available, it has been
estimated that the district produced over 4 million ounces of gold
between 1859 and 1942. The Bates-Hunter mine was in production when it
closed down in the early 1930s due to litigation between the owner and
the operator. In 1942, a WWII Production Limitation Order halted gold
mining throughout Colorado and the United States. The district was famous
for production from high-grade gold ore shoots.
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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.