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Wits Basin Discovers New Ore-Grade Gold Interval
of Potential Mineable Width at Bates-Hunter Project
Tuesday, June 17, 2008 7:17am EDT
MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin Precious Minerals Inc. (OTCBB: WITM) is pleased to announce it has intercepted an ore-grade gold interval of potential mineable width at the Bates-Hunter Mine in Central City, Colorado. Found in the Groundhogg Vein, this gold interval is considered an important new discovery because the vein exhibits excellent potential over a strike length of several hundred feet and no known past production has occurred in the immediate area of the vein. The mineralogy of the gold interval is characterized by gold and silver tellurides, a subtle type of mineralization believed to be seldom recognized by early miners.
The intersection of the ore-grade gold interval occurred in drill hole BH-08-09 and assayed 0.439 ounces per ton (opt) gold (Au) over a width of 5.1 feet. The true width of the gold interval is estimated at 4.6 feet. Diluting the gold grade to a potential mining width results in a grade of 0.401 opt Au over 5.0 feet. The gold interval is at a down-hole depth of 499.5-504.6 feet, placing the interval at a vertical depth of 435 feet below surface.
The steeply-dipping, east-west-striking Groundhogg Vein is compelling because at least three prominent Central City District mines are located where it intersects northeast-striking veins. Projecting the vein 600 feet to the west, it forms an apparent intersection with the steeply-dipping, northeast-striking Bates Vein. The German and McAllister Mines, past producers to depths of 745 and 583 feet, respectively, are located at this apparent intersection. Projecting the vein 600 feet to the east, it forms an apparent intersection with the O’Neil Vein. The O’Neil Mine, a past producer to a depth of 860 feet, is located at this apparent intersection.
Clyde Smith, Ph.D., P.Eng., President of Wits Basin, stated, "This ore-grade gold intercept is particularly significant because it creates potential over a 1,000-foot strike length in a vein that has been productive in at least three past producing Central City District gold mines. This discovery is the result of a detailed and comprehensive geological study conducted in a district famous for numerous high-grade gold mines and is accompanied by over 12,000 feet of Diamond drilling to date.”
Drill hole BH-08-10 is now drilling toward a target at a depth of 1,000 feet below surface to test the intersection between the Groundhogg and Bates Veins beneath the German and McAllister Mines. Additional holes are planned to expand the potential resource around the new gold intercept in BH-08-09.
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. Famous for production from high-grade gold ore shoots, it has been estimated that more than 4,000,000 ounces of gold were produced in the Central City Mining District between 1859 and 1947. During the early 1930s, the mine was still in production but was shut down due to litigation between the mine owner and operator. The principal veins that underlie and are controlled by the Bates-Hunter property have historically produced approximately 750,000 ounces of gold. A 1930s report from the 745-foot level included an average of 27 samples that assayed 1.37 ounces per ton gold.
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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
Certain statements included in this press release may constitute 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 relate to the Company and its subsidiaries, and include, among others, the ability to obtain or maintain regulatory approvals; the ability to obtain necessary financing; and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission. 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. |