Wits Basin PR
Wits Basin Reports on Due Diligence Progress Related to the Vianey Mexico Silver Mine
WEDNESDAY, MAY 31, 2006 7:31 AM
- BusinessWire
MINNEAPOLIS, May 31, 2006 (BUSINESS WIRE) -- Wits Basin Precious Minerals Inc. (WITM) has received information from one of its geologists, Dr. Clyde Smith, relating to Vianey Mine Concession located in Mexico. Wits Basin has signed a letter-of-intent and has until June 30, 2006, in which to complete its due diligence, whereby it may acquire an undivided 50% interest in certain mining claims comprising the Vianey from Journey Resources Corp. (CA:JNY) .
Dr. Smith stated, "The Vianey Mine in the state of Guerrero is located in an area of southern Mexico known for mineral deposits of a variety of geologic types. The silver-lead-zinc vein, manto, and breccia deposits that have been mined almost continuously on the Vianey property since 1976 are characteristic of several of the ore deposits in this part of Mexico. Significant past production from six underground levels on two principal veins indicates a broad distribution of silver-lead- zinc ore in steeply dipping structures over an area of 300 metres in length and 150 metres in depth; some underground workings terminate in apparent ore grade mineralization. Underground drilling programs conducted in 1996 from the deepest level of the mine (75 metre level) totaled 2425 metres of core drilling. Numerous holes intersected several potential ore grade mineralized zones over potentially mineable widths at depths of up to 100 metres below the deepest mine workings. In addition, two sizeable breccia bodies have been identified that hold potential for bulk scale underground mining.
The Vianey Mine project exhibits excellent potential for additional exploration and development. Following the recommendations of R. Blakestad in his October, 2004 report, it is believed that an aggressive program of surface drilling should be conducted to substantiate the 1996 data and to extend the known mineralized zones to depth and laterally from the current workings. The underground workings should be surveyed and the survey data along with underground sampling results and drill hole data should be entered into Gemcom, an industry standard software package that allows detailed three-dimensional analysis of mineralized structures. This approach will serve to accurately identify drill targets."
Wits Basin Management believes this information is very favorable and is continuing with its due diligence process in order to validate the data. We will have one of our consulting geologists making a site visit in early June to assess the current condition of the mine.
About Dr. Smith
Dr. Smith holds a B.A. from Carleton College, a M.Sc. from the University of British Columbia, and a Ph.D. from the University of Idaho. He is a registered Professional Engineer with the Association of Professional Engineers and Geoscientists of British Columbia. Dr. Smith has founded or co-founded five exploration companies and is responsible for the discovery of four deposits: the Jason lead-zinc-silver deposit, Yukon Territory, Canada; the Santa Fe gold deposit, Nevada; the North Lake gold deposit, Saskatchewan, Canada; and the Solidaridad gold-silver-copper deposit, Mexico. He is currently engaged in a gold-platinum project in Nevada and serves as the consulting geologist for El Capitan Precious Metals, Inc. on its El Capitan gold-platinum group metals project in New Mexico.
About the Vianey Mine
A review of past calculations of potentially mineable tonnages of mineralization above the -75 meter level, including the most recent exploration activities completed in 1997, and as reported by Mr. Peter Hawley in his 2000 reserve and drill resource study, provides an estimated total in all categories of 345,020 metric tonnes grading 2.13% lead, 3.66% zinc and 269 grams of silver per ton, which at current metal prices would have an in-ground value in the order of US$250/ton.
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. (WITM) visit our website at www.witsbasin.com.
