MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin
Precious Minerals Inc. (OTCBB: WITM) is
pleased to provide this update on the
Bates-Hunter Mine project located in the
Central City Mining District in Colorado.
The Company
is currently conducting a surface
exploration diamond drill program in an
attempt to intersect potential high-grade
gold ore bodies at depth below previous mine
workings in the Bates-Hunter Mine.
Historically, this mining district has
produced more than 4,000,000 ounces of gold
with 25% of the gold coming from the area
immediately surrounding the Bates-Hunter
project. In addition to the drill program,
dewatering and mine rehabilitation work is
underway. Such on-going efforts focus on the
further development of this potentially
valuable resource.
Drilling Program
The
Company is engaged in an active exploration
diamond drill program in an attempt to
locate potential extensions at depth of
high-grade gold ore bodies mined at higher
levels in the mine. On August 15, 2007,
diamond drill hole BH07-07 was at a depth of
1,521 feet. The objective of drill hole
BH07-07 is to reach the Stope Plunge Target
zone, a projected extension of the Bates
Vein ore shoot that had previously been
mined to a depth of 745 feet from the
surface in the Bates-Hunter Mine workings.
Figure 1 (http://www.witsnews.com/BH07-07Figure1.jpg)
depicts a longitudinal section of the Bates
Vein showing the historic workings in the
Bates-Hunter Mine. The yellow band
represents what is believed to be the
extension of the ore shoot to depth and
includes the projected piercing point of
drill hole BH07-07.
The Company anticipates that it will be able
to intersect the Stope Plunge Target at a
down-hole depth of approximately 1,650 to
1,920 feet.
Figure 2 (http://www.witsnews.com/BH07-07Figure2.jpg)
represents a cross-section along the plane
of drill hole BH07-07. It illustrates that
the actual depth of the target will depend
on the dip of the Bates Vein. A dip is
described as the angle of inclination or
slope measured from the horizontal plane
downward. At the surface, the vein is near
vertical, but the attitude of the
Bates-Hunter shaft indicates that the vein
may dip to the southeast at depth. Drill
hole BH07-07 potentially intersects a
vertical vein at approximately 1,920 feet as
well as a vein that dips 80 degrees to the
southeast at approximately 1,650 feet. The
yellow areas on
Figure 2 show the anticipated locations
of the Stope Plunge Target at these vein
dips. It can be seen that the drill hole is
expected to pass through both of these areas
and, therefore, both of the possible
projected targets should be tested. An
animated video of the current state of
diamond drill hole BH07-07 can be
found here (http://www.witsnews.com/BH07-0708-17-20078sm.avi)
or on the Company's website at
www.witsbasin.com.
On-site drilling conditions have been
challenging throughout the course of the
program. Drill hole BH07-07 has encountered
underground workings and several voids that
have affected drill-fluid circulation. The
hole has also required the placement of
numerous wedges to keep it on target. Wits
Basin is working in close consultation with
its drilling contractor, G&O Diamond
Drilling Contractors of Hay Lakes, Alberta,
Canada to ensure careful progress toward
completion of the hole. Barring any
unforeseen complications, the Company
anticipates that it could reach its drill
target in September or October. Additional
geological details of intercepts, along with
the accompanying assay results, will be
provided as they become available.
Safety, Dewatering and Mine
Rehabilitation
Safety continues to be a top priority at the
Bates-Hunter project. All 12 Bates-Hunter
crew members recently completed the
state-sponsored mine safety program and have
received their passing certificates.
Hydrostatic pressure and water flows and
levels are being carefully monitored and
controlled.
The
dewatering of the Bates-Hunter shaft is a
continuous process. While water levels have
been as low as 350 feet, levels have
fluctuated due to recent heavy water
run-offs that outpaced pumping ability to
maintain equilibrium. Equipment repairs
during this time have also slowed the water
evacuation process causing the water levels
to be as high as 260 feet. The Company has
determined that there is a need to construct
a multi-step water-pumping system with
several stations to move larger volumes of
water from lower levels upward. The Company
is also in the process of adding a larger
pump with additional filtering to help
ensure the steady dewatering progress. Once
this new pump and its attendant parts have
been installed, it is anticipated that all
the necessary equipment will be in place to
properly dewater the entire shaft.
The next
dewatering targets are Level 424 and Level
468 (see
Figure 1). When reached, the Company
will evaluate whether these levels are
suitable for locating an underground diamond
drill station. Underground drilling from
within the Bates-Hunter workings would test
the mineralization potential of adjacent
ground both northwest and southeast of the
Bates Vein.
Rehabilitation of the shaft progresses as
dewatering occurs. This includes removing
debris, replacing and adding timbers for
support, adding refuge chambers, stringing
lights and wiring, installing ladders, and
fireproofing timbers. The Company is working
closely with the federal Mine Safety and
Health Administration (MSHA) to ensure safe
progress of the shaft rehabilitation.
Land Acquisition
The Company is in the process
of negotiating for mineral and surface
rights with nearby property owners for
additional tracts in the Bates-Hunter
project area. These acquisitions, which hold
three other historically gold-producing
mines, could add an additional 15 parcels
totaling approximately 16 acres adjacent to
the Bates-Hunter claims.
Water Treatment Plant
In 2004, the
Bates-Hunter water treatment plant was
identified as the selected remedy for the
U.S. Environmental Protection Agency's (EPA)
Clear Creek/Central City Superfund Site,
Operable Unit 4 (ftp://ftp.epa.gov/r8/RODS/ClearCreekOU4ROD.pdf).
The EPA and the Company have been in
negotiations to reach an agreement to use
the Bates-Hunter water treatment facility to
treat and process excess water in the
remediation of the tailings from other mines
in the area. The remediation would be paid
from the Superfund account, thus benefiting
the Company with incremental revenue should
an agreement be reached. The Company will
provide details of any agreement as soon as
it is final.
About Bates-Hunter
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. The nine principal veins that
underlie and are controlled by the
Bates-Hunter property have historically
produced approximately 750,000 ounces of
gold.
Click here (http://www.witsnews.com/images807.htm)
to view the
Bates-Hunter photo gallery.
__________________________________________________________
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 - News) 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 and CGMR'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 and CGMR'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.