Wits Basin PR
Wits Basin's Colorado Pumps Running 24/7!; Permits in Place to Mine up to 70,000 Tons Per Year
THURSDAY, JANUARY 05, 2006 7:15 AM
- BusinessWire
MINNEAPOLIS, Jan 05, 2006 (BUSINESS WIRE) -- Wits Basin Precious Minerals Inc. (WITM) has pumped past the third level and is now running a 24 hour seven day per week operation at the Bates-Hunter Project. Work crews continue the ever important de-watering and rehabilitation work in order to progress to production. With this new development, our ability to process additional assays and to drill sample sections to block out possible resources is enhanced.
Permits in place to mine up to 70,000 tons per year
Quoting from the O'Gorman report regarding the mining permits, "The Bates-Hunter Project lands within the City Limits are generally zoned for mining or industrial use. The Mine and Mill Permit status was investigated at the Colorado Department of Geology in Denver. Permit M-1990-41 covers the Bates-Hunter Mine and the Golden Gilpin Mill and is in good standing."
Vance White, CEO states, "This project has always shown great technical merit and with the tremendous amounts of historical data, we believe in both rich and significant amounts of gold possible. We look forward to the progress of additional assay reports and progress toward sample drilling and ever deeper rehabilitation."
The amount of gold mined from 70,000 tons will be dependant on the grade of ore recoverable. Based on today's price of gold, if a grade of 0.5 oz. per ton can be sustained, the annual gross revenue derived from this would be approximately equal 25 cents per share.
Prior information released concerning estimated gold amounts
Quoting further from the O'Gorman Report, regarding grades of ore and size it is stated, "Using a grade of 0.58 oz. Au/ton over a minimum thickness of 5 feet based on historic records, it is estimated that the Bates vein alone represents an exploration target that could host approximately 1.1 million ounces of gold to a depth of 2,400 feet. The strike lengths of the Vasa Levitt, Gettysburg and the six other veins covered by the project claims could increase this potential by a factor of two to ten."
