WGR - Wits Gold announces initiation of independent scoping study and further drilling at the DBM Project

JOHANNESBURG, March 30 /CNW/ - Wits Gold is pleased to announce that Turgis Consulting (Pty) Limited ("Turgis") has been appointed to complete a preliminary economic assessment or scoping study at Wits Gold's combined De Bron-Merriespruit South (DBM) project in the southern Free State goldfield, South Africa. This follows the press release of 22 February 2011 containing the revised gold and uranium resource estimate at the DBM project.

Turgis will focus on producing preliminary mine design options to optimally exploit the DBM orebody. Emphasis will be placed on accessing the shallow high grade core at DBM in order to provide higher financial returns during the early stages of mining. This is expected to result in a shorter capital expenditure payback period, as well as a possible higher IRR over the life of mine. Using a 6 g/t cut-off, the high grade shallow reefs that are situated some 500 metres below surface contain an Indicated Resource of 9.5Mt @ 7.9 g/t Au (2.4Moz). Turgis will also consider the economics of mining the Indicated Resource of uranium that occurs within the Leader Reef, containing 17.0Mt @ 0.16 kg/t U3O8 (6.1Mlbs). A National Instrument 43-101 compliant technical report on the DBM resource estimate is being finalised and will be filed on SEDAR at www.sedar.com in April 2011.

Wits Gold CEO Dr Marc Watchorn commented, "We welcome the opportunity to work with Turgis on the DBM project, which the Company believes will be the next shallow gold mine in South Africa. It is anticipated that the results of the scoping study will become available during April 2011."

In addition, two infill boreholes are currently underway to improve the definition of the Inferred Resource estimated at the DBM project. The results of this drilling will be incorporated in the pre-feasibility study that will be based on the optimal mine design identified in the DBM scoping study.



Forward Looking Information

Certain statements in this news release may constitute forward-looking information within the meaning of securities laws. In some cases, forward looking information can be identified by use of terms such as "may", "will", "should", "expect", "believe", "plan", "scheduled", "intend", "estimate", "forecast", "predict", "potential", "continue", "anticipate" or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding the future plans or prospects of the Company. Without limitation, statements about the timing of a preliminary economic assessment or scoping study are forward-looking information.

Forward looking information involves known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward looking information. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa; decreases in the market price of gold; hazards associated with underground and surface gold mining; the ability to attract and retain qualified personnel; labour disruptions; changes in laws and government regulations, particularly environmental regulations and mineral rights legislation including risks relating to the acquisition of the necessary licences and permits; changes in exchange rates; currency devaluations and inflation and other macro-economic factors; risk of changes in capital and operating costs, financing, capitalisation and liquidity risks, including the risk that the financing required to fund all currently planned exploration and related activities may not be available on satisfactory terms, or at all; the ability to maximise the value of any economic resources. These forward-looking statements speak only as of the date of this news release.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events except where required by applicable laws.


Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd



For further information:

Marc Watchorn
Chief Executive Officer
Tel: +27 11 832 1749

Hethen Hira
Investor Relations
Tel: +27 11 832 1749

www.witsgold.com