MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin
Precious Minerals Inc. (OTCBB:WITM) is pleased to announce that it has intersected an
ore-grade gold vein on its Bates-Hunter Gold Project in Central City,
Colorado. Assay results are 0.647 ounces per ton (opt) Au over a 5-foot
sample interval. Within
this sample interval, the highest value reported is 1.197 opt Au over 2.5
feet. The intercept is near the apparent intersection between two veins
at a down-hole depth of 145-149 feet in diamond drill hole BH-06-04, a
-62-degree hole drilled to the northwest on an azimuth of 280 degrees.
The true width of the intersected gold vein is not known and additional
diamond drilling will be required to determine this.
Wits Basin President Dr. Clyde L. Smith said, "The ore-grade
intercept in diamond drill hole BH-06-04 is extremely encouraging and
clearly indicates that excellent potential exists for ore-grade ore
shoots in the veins now being drilled by Wits Basin on the Bates-Hunter
Gold Project. At current gold prices, gold grades in excess of 0.30 opt
Au over a minimum 5-foot mining width may be considered economic for
underground mining. The above-mentioned 0.647 opt Au value over a 5-foot
sample interval should therefore be considered potentially
economic."
Although accurate production records are not available, it has been
estimated that at least 4,000,000 ounces of gold were produced in the
Central City Gold District between 1859 and 1947, with approximately 95%
of production prior to 1904. The district was famous for production from
high-grade gold ore shoots.
Wits Basin has focused on a selected portion of the historic Central City
Gold District from which approximately one-quarter of past production has
come. The Company has assembled a team of four experienced exploration
geologists who are now conducting the first significant modern
exploration program in the District. Over the last 13 months, this team
has been performing a detailed geologic study including claim surveying,
geologic mapping with surveyed outcrop stations, detailed core logging,
assaying of numerous mineralized intervals, compilation of historical
data, diamond drilling, and state-of-the-art three-dimensional computer
modeling. This intense study has revealed that past production has come
from high-grade gold ore shoots located at structural intersections
between three steeply-dipping vein sets. Wits Basin has identified
several such structural intersections outside of and below areas of past
production on the Bates-Hunter Gold Project claims that could contain ore
shoots. The Company will consider these as targets for future drilling.
About the Diamond Drill Program
BH-06-04 is one of seven angle diamond drill holes,
totaling 4,951 feet, now completed on the project. Five of the seven
holes reached relatively shallow depths of 51-405 feet and were
terminated primarily due to encountering old mine workings. Two of the
holes, BH-06-02 and BH-07-07, completed at depths of 2,025 feet and 1,945
feet, respectively, were drilled to test the Bates Vein at vertical
depths below the surface in excess of 1,000 feet. All seven drill holes
cut additional veins as they proceeded toward the Bates Vein. The
BH-06-04 ore-grade gold intercept noted above is one of seven narrow
intervals in gold-bearing veins, apart from the Bates Vein, that have
assayed over 0.10 opt Au.
The Wits Basin diamond drill program has focused on exploring the Bates
Vein below the deepest 745-foot level of past production. Although the
two deep holes completed to date (BH-06-02 and BH-07-07) did not
intersect ore-grade ore shoots, the holes have cut the Bates Vein in
intervals that include narrow stringer gold mineralization and broad
zones of related hydrothermal alteration. Drill hole BH-07-08, which is
the eighth hole now being drilled, is a wedged hole from BH-07-07,
targeted at a potential ore shoot at an apparent structural intersection
between the Bates Vein and two other steeply-dipping veins at a vertical
depth below surface of 1,000 feet.
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. During the early 1930's, the mine was still in production
but was shut down due to litigation between the mine owner and operator.
In 1942, a WWII production limitation order (#208) effectively shut down
gold mining in the area and throughout Colorado and the United States.
The nine principal veins that underlie and are controlled by the
Bates-Hunter property have historically produced approximately 750,000
ounces of gold.
____________________________________________________________
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
The statements included in this press release concerning
predictions of economic performance and management's plans and objectives
constitute forward-looking statements made pursuant to the safe harbor
provisions of Section 21E of the Securities Exchange Act of 1934, as
amended, and Section 27A of the Securities Act of 1933, as amended. This
press release contains 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 include, among others, the
Company's ability to obtain or maintain regulatory approvals; the Company's
ability to obtain necessary financing; the Company's ability to
consummate the Easyknit merger; the Company's ability to complete the
various mining project acquisitions in the People's Republic of China,
which are subject to execution of final documentation, completion of due
diligence and receipt of necessary financing; and other risks and
uncertainties described in the Company's filings from time to time with
the Securities and Exchange Commission (the "SEC"). 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 on Form 10-KSB, quarterly reports on Form 10-QSB and
reports on Form 8-K.
This press release does not constitute an offer to exchange or sell or an
offer to exchange or buy any securities. This document may be deemed to
be solicitation material in respect of the proposed merger of Wits Basin
and Easyknit.
An offer of securities in the United States pursuant to a business
combination transaction will only be made through a prospectus which is
part of an effective registration statement filed with the SEC. In
connection with the proposed transaction, Easyknit will file a
registration statement on Form F-4, which will include a proxy statement
of Wits Basin that also constitutes a prospectus of Easyknit, and other
documents with the SEC. Shareholders of Wits Basin are encouraged to read
the definitive registration statement on Form F-4 and any other relevant
documents filed or that will be filed with the SEC, including the
definitive proxy statement/prospectus that will be part of the definitive
registration statement on Form F-4, as they become available because they
contain or will contain important information about the proposed merger.
The final proxy statement/prospectus will be mailed to shareholders of
Wits Basin. Investors and security holders will be able to obtain the
documents free of charge at the SEC's web site, www.sec.gov,
or from Wits Basin's Investor Relations at Lighthouse Communications
(866) 739-0390 or info@lhcom.bz.
Participants in Solicitation
Wits Basin and its directors and executive officers and other
members of management and employees may be deemed to be participants in
the solicitation of proxies from the shareholders of Wits Basin in
connection with the proposed merger. Information about the directors and
executive officers of Wits Basin and their ownership of Wits Basin common
stock is set forth in its Annual Report on Form 10-KSB, as filed with the
SEC on April 16, 2007. Additional information regarding the interests of
such participants may be obtained by reading the registration statement on
Form F-4 and proxy statement/prospectus when it becomes available.