Wits Basin Precious Minerals Inc. Updates Progress at the Xiaonanshan Iron Ore Mine
Wits Basin Precious Minerals Inc. provides the following updates from China Global Mining Resources (BVI) Limited (“CGMR (BVI)”):
Revenue and costs during March 2014
The safety and mining rehabilitation work continues during this current quarter. AZH has reported this work program will extend beyond 30 June 2014 due to wet conditions at the mine. The focus remains on this required and critical work and full production can only resume once this work is completed. Current time beyond the June 30 date is estimated by AZH as requiring a minimum of an extra 30 days.
Continuing in the interim, while moving earth [waste], the ore and concentrate sales generate positive cash flow. The mine has been able to generate revenue sufficient to do the safety work and also continue the repayment process of start up costs and other contractor repayments. The revenue for March totals approximately RMB 7.584 million (approximately USD $1.2 million) and the surplus cash flow net of operational costs is approximately RMB 531,000 (approximately $84,000).
The 3rd party vendor audit work continues. Once this audit work is completed, then the remaining balances if any, due to the contractor, can be finalized.
The November operating agreement allows charges of 350RMB ($57 USD) per ton and the invoice audit review will include all charges for operations as well as waste materials. Once full production commences, it is expected that overburden costs and excess waste removal cost will have in large part terminated.
The next update for April and May is expected mid June 2014.
About Wits Basin Precious Minerals Inc.
Wits Basin is a minerals exploration and development stage company that owns a 75% equity interest in CGMR (BVI). CGMR BVI controls the Hong Kong company which in turn owns the Xiaonanshan Mine, located in Anhui Provence of the People’s Republic of China. To find out more about Wits Basin Precious Minerals Inc. 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 risks relating to the completion of mine rehabilitation work and ongoing mining activities; market pricing of iron ore; the ability to obtain necessary financing; and other risks and uncertainties described in the Company's prior press releases or other filings.
Contact
Wits Basin Precious Minerals Inc.
Al McLellan, +1 646-937-8790
info@witsbasin.com