PR from WITS
Wits Basin Starts to Resurrect the Bates-Hunter Gold Mine Site
Thursday June 23, 7:27 am ET
The Bates Vein Was the Second Lode Discovered in Colorado and Helped Spark the Great Colorado Gold Rush in the Mid 1800's
MINNEAPOLIS--(BUSINESS WIRE)--June 23, 2005--Wits Basin Precious Minerals Inc. (OTCBB:WITM - News) believes they are about to repeat mining history as they finalize the start of the de-watering process at the Bates-Hunter Gold Mine in Central City, Colorado, the heart of what was called the "Richest Square Mile on Earth."
Central City district has produced more than 4 million ounces of gold since 1859 with over 25% of this production coming from the area immediately surrounding the Bates-Hunter Gold Mine. The Bates-Hunter mine closed in 1936 largely due in part to litigation between the operator at the time and the mining claim owner. At that time the mine shaft was approximately 800 feet deep. Other comparative mines in the area have reached depths in excess of 2,200 feet and were still in ore at the time of closure.
After an exhaustive search of historical data, Wits Basin obtained an option to purchase the Bates-Hunter Gold Mine subject to the successful completion of de-watering and proof of adequate gold reserves.
The single, most compelling of the historical documents reviewed to date, is in the form of a simple letter. In the search for archival materials, Wits Basin management discovered a report prepared by Fred Jones, E.M., dated June 15, 1939. Mr. Jones was later the Colorado Commissioner of Mines from 1943 through 1950. The contents of Mr. Jones' letter is akin to a "treasure map," which will guide the current mine de-watering and due diligence program.
Under the heading "PROSPECTS" Mr. Jones stated:
"To my knowledge there are three shoots of ore on the mine:
300 FOOT LEVEL
A streak of heavy sulphide ore is opened in the wall of the drift running west from the shaft. The length of the ore shoot could not be determined because the back of the drift is timbered and lagged. Samples taken over a length of forty feet where it was exposed showed values in gold of from .34 to 1.30 ounces per ton.
700 FOOT LEVEL
A fifty foot length of ore is opened in the bottom of 700 near the shaft. This ore slopes four feet wide and the streaks assay as follows: 1.10--0.80--0.40--1.08--1.12--4.60--3.20--3.58--3.38--3.82 ounces. There is no evidence that this ore has been opened below the 700 foot level.
800 FOOT LEVEL
The 800 foot or bottom level is well timbered and in good shape to the west breast, a distance of 440 feet. At 150 feet west of the shaft a cross vein has been opened showing ore assaying from .36 to .76 ounces gold. This vein continues west with the main vein for a distance of 165 feet where it branches off to the north. For about 50 feet before the veins separate to ore is about 10 feet wide showing values from 0.80 to 8.60 ounces gold. The sample assaying 8.60 ounces gold was taken from a large slab of ore weighing a ton or more. This slab was found in place and cracked away from the wall as the drift was cleaned. The ore is still exposed in the bottom of the drift and the samples can be verified as soon as the level is unwatered. The ore shoot in the bottom of this level is continuous from the shaft west, a distance of 440 feet. The breast of the drift is still in ore. Assays from the old muck pile in the breast ran from .68 to 1.08 ounces gold. This drift can still be driven several hundred feet to the property line. In this distance several cross veins can be expected with results comparable to the first cross vein."
Wits Basin's expectations are also supported by an excerpt from an engineering report revised in 1930 by Lewis E. Ashbaugh, a Denver based consulting engineer. In his report, Mr. Ashbaugh states: "The Bates offers the opportunity of recovery of the rich gold ores under favorable conditions, from a vein which has been thoroughly proven, but worked only near the surface, leaving a great area of ore body which has never been touched, and especially leaving available to our operations the mining of the rich chimney below Gregory Gulch, which unites the two ore chutes demonstrated in the Becker and Hunter shafts. The possibilities of the great profits from this vein are beyond question, based upon actual work of the past."
Wits Basin is optimistic, that based upon historical evidence on hand, the Bates-Hunter Gold Mine has the potential to be resurrected and once again become a significant gold producer.
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. (OTCBB:WITM - News), visit our website at www.witsbasin.com.
Forward-Looking Statements and Risk Factors
Certain statements contained in this press release are forward-looking in nature and are based on the current beliefs and assumptions of our management. Words like "may," "could," "should," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict," and similar expressions and their variants may be used to identify forward-looking statements. 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.
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 and mineral resources 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 and mineral resources already discovered and recovered by others in the same region of the planned areas of exploration.
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 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.
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Contact:
Wits Basin Precious Minerals Inc.
H. Vance White, 866-214-WITM (9486)
Stephen King, 612-490-3419
or
Friedland Capital
Dara Albright, 201-420-7437 (Investor Relations)
dara@friedlandcapital.com
or
Aurelius Consulting Group
Dan Wernecke, 407-644-4256
www.runonideas.com
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Source: Wits Basin Precious Minerals Inc.
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