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Wits Basin Announces Another Gold Intercept
at the Bates-Hunter Mine Project
Wednesday, July 16, 2008 7:16am EDT
MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin Precious Minerals Inc. (OTCBB: WITM) is pleased to announce that it has intercepted another significant gold interval in the Groundhogg Vein at the Bates-Hunter Mine in Central City, Colorado. The intersection occurred in drill hole BH-08-10. It assayed 0.265 ounces per ton (opt) gold (Au) over a sampled width of 2.5 feet. The intercept is located 645 feet along strike to the west of the previously announced intercept in drill hole BH-08-09 that assayed 0.401 opt Au over a diluted true width of 5.0 feet. The BH-08-10 intercept correlates geologically, geochemically, minerologically, geometrically, and texturally with the BH-08-09 intercept. This is an important discovery because it indicates that the Groundhogg Vein may contain significant gold mineralization over at least this 645-foot length.
The true width of the interval is estimated at 2.0 feet. This interval occurs within a zone that assayed 0.132 opt Au over 7.7 feet, with an estimated true width of 5.0 feet. The intervals are at a down-hole depth of 1394.0-1401.7 feet.
Wits Basin President Clyde Smith, Ph.D., P.Eng., stated, “The recent gold intercepts in drill holes BH-08-09 and BH-08-10 clearly indicate that the Groundhogg Vein holds significant potential for gold ore shoots. We have developed a refined geologic understanding based on more than 11,000 feet of surface diamond drilling, detailed core logging, assay results, and state-of-the-art computer modeling. This is allowing Wits Basin to identify, with even greater accuracy, specific drill targets with excellent potential. Sustained gold prices above $900 per ounce make the economic potential of the Bates-Hunter Project increasingly attractive.”
Three past-producing gold mines are located where the steeply-dipping, east-west-striking Groundhogg Vein intersects northeast-striking veins in the Central City Gold District. Detailed computer modeling indicates that the Groundhogg Vein should intersect the Bates Vein approximately 150 feet to the northeast of the above intercept in BH-08-10. This is the next target that will be drilled by the Company.
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 1930's, 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 1930’s 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. |