Wits Gold increases indicated mineral resources in the Southern Free State

Wits Gold announce the completion of an independent review of the mineral resources in the company’s De Bron project, situated immediately south of Harmony Gold Mine in the Free State Goldfield. This review was undertaken on 30th April 2009 by Snowden Mining Industry Consultants (‘Snowden’) following the completion of Wits Gold’s recent drilling programme in the area. Using a cutoff gold value of 300cm.g/t, this estimate by Snowden has outlined an Indicated Resource on the Beatrix, Kalkoenkrans, B and Leader Reefs of 23.2Mt at an average grade of 5.2g/t containing 119.7 tonnes (3.85Moz) of gold. This represents a 1.15Moz or 41% increase in the contained gold relative to the previous Indicated Resource of 16.1Mt at an average of 5.3g/t equivalent to 85.0 tonnes (2.7Moz) of gold. At the same time, the estimated Inferred Resource on these reefs has decreased 27% from a previous 12.0Mt at 5.6g/t for 67.2 tonnes (2.2Moz) of gold to a present 9.4Mt at 5.3g/t containing 49.1 tonnes (1.58Moz) of gold.

Commenting on the results of the revised resource estimate, Chief Executive Officer, Dr Marc Watchorn said, ‘Wits Gold’s stated intention has been to focus on exploration projects that have the potential to host gold deposits containing resources in excess of 5Moz. De Bron represents one such project where the company has successfully been able to identify shallow resources at depths of 500-1200 metres below surface. This achievement has been brought about largely by additional drilling that has substantiated the company’s predictive geological model for the area.’

Wits Gold has commissioned a pre-feasibility study to consider the economics of mining at De Bron as well as the adjacent Bloemhoek area. This study is being undertaken on behalf of the company by Turnberry Projects together with Ukwazi Mining Solutions. The results from a number of alternative mine designs will become available over the next three months.