Wits Basin PR
Wits Basin Completes Due Diligence on Vianey Silver Mine in Mexico; Right to Earn up to 50% Interest is Exercised
WEDNESDAY, JUNE 28, 2006 7:28 AM - BusinessWire
MINNEAPOLIS, Jun 28, 2006 (BUSINESS WIRE) -- Wits Basin Precious Minerals Inc. (WITM) is pleased to announce completion of due diligence, ahead of schedule, relating to the Vianey Mine Concession located in Mexico. As previously announced on May 31, 2006, Wits Basin signed a letter-of-intent and had until June 30, 2006, in which to complete its due diligence, whereby it may earn up to an undivided 50% interest in certain mining claims comprising the Vianey Mine from Journey Resources Corp. (CA:JNY) .
Geologist Dr. Clyde 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."
"We believe the Vianey Mine project exhibits excellent potential for development and we've elected to move forward exercising the option to explore this former producing silver mine," said Vance White, CEO. "Our plan is to develop an exploration program to help prove up additional mineralization that we believe could be several million tons."
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 completed in 1997, by Hawley, P.J., 2000b, states a total in all categories of 345,020 metric tonnes grading 2.13% lead, 3.66% zinc and 269 grams of silver per tonne. (These data are historical resource estimates under National Instrument 43-101, which have not been sufficiently verified by a qualified person to be classified as current mineral resources. Wits Basin is not treating these historical estimates as current resource estimates and therefore, these historical estimates should not be relied upon).
About Wits Basin Precious Minerals Inc.
We are a minerals exploration and development company holding interests in four 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.
