Microsoft Word - WWI - New Exploration Target for the Soweto Cluster to 400m Depth - 220915 - final
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New Exploration Target for the Soweto Cluster to 400m Depth
22 September 2015
West Wits Mining Limited ("West Wits" or "the Company") is pleased to announce an Exploration Target for its 74% owned Soweto Cluster in Gauteng Province of RSA. The new Exploration Target includes only the zone within the top 400m below surface which at this stage is considered potentially viable for exploitation from open pit and or shallow underground mining.
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Table 1: Consolidated Exploration Target for the Soweto Cluster
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Category
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Tonnes Millions
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Grade g/t
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Ounces Au
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Low range
Upper Range
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9
15
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3.5
4.5
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1,000,000
2,200,000
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Table 1: The consolidated Exploration Target is stated above as ranges of approximations of tonnes and grades. Number differences may occur due to rounding errors. The potential quantity and grade is conceptual in nature, there has been insufficient exploration and evaluation of the historical information to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.
This Exploration Target is based on the near surface portions of a recently republished (refer announcement 28 August 2015) historical estimate that had been compiled by DRD Gold Limited
and released in its annual report to the ASX in 2000:
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Category
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Tonnes Millions
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Grade g/t
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Ounces Au
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Measured
Indicated
Inferred
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27.1
29.4
31.4
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5.03
3.88
4.72
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4,380,000
3,670,000
4,770,000
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87.9
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4.6
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12,820,000
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Table 2. Historical Mineral Resource Estimate for the Company's Soweto Cluster Project (ASX: 28/8/15).
The supporting material concerning the above historical estimate provided in the announcement of
28 August 2015 continues to apply and has not materially changed. The historical estimate is not reported in accordance with the JORC Code (2012). At this point a Competent Person has not done sufficient work to classify this historical estimate under the JORC Code (2012).
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Consolidated Exploration Target
Historical mining at the Soweto Cluster was focused on six separate mineralised conglomerate horizons all of which had individual detailed historical estimates reported under a previous version of the JORC Code. Historical estimates were formulated using a detailed knowledge of the geology and grade distribution within each zone. Estimates were further improved through ongoing reconciliation between mined tonnes (surveyed) and gold grades (both estimated and sampled) and the actual gold produced from the gold recovery circuit. Careful evaluation of the historical estimate combined with an understanding of both the post mining history and current conditions of the DRD and Rand Leases (now known as the Soweto Cluster by West Wits) has enabled the Company to declare an Exploration Target for the Soweto Cluster in accordance with the JORC Code (2012). The Exploration Target is not based on new exploration data, rather it is a consolidation of individual historical estimates on all six previously mineralised horizons. Importantly the new consolidated Exploration Target includes only the zone within the top 400m below surface which at this stage is considered potentially viable for exploitation from open pit and or shallow underground mining. In contrast the historical estimate above was calculated by reference to areas extending from surface to over 3000m depth. The Exploration Target includes unmined areas and underground pillars assessed as available at the completion of mining.
Previous Mining History of the Soweto Cluster
The Soweto Cluster comprises two historic mining centres known as the Durban Deeps and the Rand Leases on the Northern Edge of the Witwatersrand Basin in the Central Rand Goldfields immediately west of the city of Johannesburg (Figure 1). Mining has been taking place within these areas since discovery of the goldfields in 1896. During that time up to six different gold bearing conglomerate horizons have been mined from surface down to a depth of 3100 metres and total production for the combined Durban Deeps and Rand Leases area was over 30 million ounces of gold at a grade in excess of 5g/t Au (ASX: West Wits Mining Limited prospectus 15/Nov/2007). Mining operations from all sites within the Durban Deeps lease and the Rand Lease had ceased by June 2000. WWI acquired
the project in 2007.
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Figure 1. Location main auriferous lodes within the Soweto Cluster. The white boundary marks the extent of the
WWI tenements in the area.
Future Work and Funding
The Company is committed to a full technical evaluation of the project area, this work will include;
• Evaluation of water level in the underground workings
• Documentation of all existing mine openings
• Review of historic plans at the close of mining
• Limited drilling to test relatively shallow (
• Review of sampling methodology and QAQC results for underground sampling
• Reconciliation review between underground grades and tonnes and those achieved through the process plant.
Aspects of the work have already been commenced by the Company which has announced a non- renounceable pro-rata Rights Issue of 1 new share (New Share) for every 4 Shares held on the Record Date at an issue price of 1.4 cents ($0.014) issued to raise approximately $1,109,370 before costs of the issue.
The Rights Issue is underwritten by Far East Capital Limited [ACN 068 838 193] [AFSL 253003].
The Rights Issue closes at 5.00pm (Perth, WA time) on 9 October 2015 (which date may change without notice).
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Assessment Criteria and Geostatistical Methods used in Creation of Historic Mineral Resource
Estimates as applied to the six individual reefs and applied to the Consolidated Exploration Target.
1. Each orebody was separated into domains based on geological characteristics that have been developed across the 100 year history of mining on the Witwatersrand
2. On reef development was sampled on a 3 X 3 metre grid. Stopes were sampled during mining on a 6 X 6 metre grid
3. Sampling techniques consist of manually collected channel samples averaging 1.5kg coupled with broken ore sampling and conveyor belt sampling prior to delivery to plant
4. Underground samples are routinely assayed for gold by fire assay using 25g charges and then applying a local standard developed across the history of mining in the area to discount for silver. 10% of a samples were re-assayed to check to accuracy after parting using a nitric acid solution to check and account for the silver content
5. Stockpile and conveyor samples are assayed by 50g fire assays after nitric acid treatment
6. Standards and blanks were routinely used throughout the procedure at an unknown frequency
7. Resource Estimation was completed using Ordinary Kriging within the clearly defined geologic domains
8. Measured, Indicated and Inferred categories were assessed based on data distribution and estimated in blocks of 10x10m, 30X30m and 50x50m respectively.
The significant past production from the lease area of over 30 million ounces from 100 years of production and the fact that the estimate was reported under a previous version of the JORC Code using identical resource categories lends further support to the declaration of this Exploration Target.
For and on behalf of the board
Michael Quinert
Chairman
West Wits Mining Limited
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The review of the Geological data and historical estimates was undertaken by Dr. Andrew Tunks and represents an accurate representation of the available data. Dr. Tunks (Member Australian Institute Geoscientists) is a consultant to the Company and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Tunks consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
For further information visit www.westwitsmining.com
Or Contact
Tim Chapman Telephone: +61 3 8692 9049
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