Wits Gold enters into agreements to acquire additional Prospecting Rights adjacent to its Bloemhoek and DBM Projects, southern Free State goldfield
Witwatersrand Consolidated Gold Resources Limited
(Incorporated in the Republic of South Africa)
Registration Number 2002/031365/06
JSE Code: WGR
ISIN: ZAE000079703
TSX Code: WGR
CUSIP Number: S98297104
('Wits Gold' or 'the Company')
JOHANNESBURG, Nov. 1, 2011 /CNW/ - Wits Gold wishes to announce that it has signed agreements with Taung Gold (Taung) and Randgold and Exploration Group (R&E Group) to acquire prospecting rights in South Africa's southern Free State goldfield.
The Taung Prospecting Right comprises the farms Richelieu 135 and Plecy 82, measuring 652 hectares, and is located immediately south of the Company's Bloemhoek Project area. It is anticipated that the properties could contain the southern high-grade extension to the Kalkoenkrans Reef channel modeled at Bloemhoek. An initial borehole is planned to confirm the geological model, post which the Bloemhoek pre-feasibility study, completed in October 2009, will be updated.
The agreement with R&E Group concerns their Prospecting Right over the farms Tweepan 678 and Millo 639, measuring 355 hectares, located immediately north of the Bloemhoek Project area and west of the De Bron Merriespruit(DBM) Project area. Available historic data over these properties will be added to Wits Gold's geological model in order to plan an appropriate drilling programme.
Commenting on the acquisitions, CEO, Philip Kotze, said, 'The location of these properties will serve to further consolidate our Prospecting Rights in the southern Free State, following the acquisition of the Merriespruit South area from Harmony last year. The Company's geological models indicate extensions to the reefs from the Bloemhoek and DBM Projects are highly likely, and a drilling programme to confirm this is currently being planned. These properties would not sustain standalone mining operations, but access to these potential resources from planned infrastructure at DBM and Bloemhoek would enhance the financial returns for both projects.'
The acquisition price of R3 million to Taung Gold and R1.5 million to R&E Group will be payable once consent to transfer the Prospecting Right to Wits Gold is obtained from the Minister of Mineral Resources in terms of Section 11 of the Mineral and Petroleum Resources Development Act.
About the Company
Wits Gold holds 14 new order Prospecting Rights over 1 195km(2) in the southern Free State, Potchefstroom and Klerksdorp goldfields. The Company is currently focused on fast-tracking two advanced projects, DBM and Bloemhoek, located next to each other in the southern Free State goldfield and adjacent to the Beatrix mine operated by Gold Fields, and Joel, operated by Harmony.
Forward Looking Information
Certain statements in this news release may constitute forward-looking information within the meaning of securities laws. Such statements include the payment of the acquisition price, consent being obtained from the Minister of Mineral Resources in terms of Section 11 of the Mineral and Petroleum Resources Development Act, the possibility of any extension to the reefs from the Bloemhoek and DBM Projects into the Taung Prospecting Right and the R&E Group Prospecting Right, and the potential enhancement of the financial returns for the Bloemhoek and DBM Projects. 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.
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: not obtaining the necessary consent from the Minister of Mineral Resources in terms of Section 11 of the Mineral and Petroleum Resources Development Act; that the reefs from the Bloemhoek and DBM Projects do not extend into the Taung Prospecting Right and the R&E Group Prospecting Right, or that even if the reefs do extend into such Prospecting Rights that they cannot be accessed from the planned infrastructure at DBM and Bloemhoek, or that they cannot be economically accessed in any event; 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; and 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 news release or to reflect the occurrence of unanticipated events except where required by applicable laws.
Wits Gold
CONTACT:
Mr. Philip Kotze Mr. Hethen Hira
Chief Executive Officer Executive: Investor Relations
philip@witsgold.comhethenh@witsgold.com
Tel: 27 11 832 1749
www.witsgold.com