Rand Leases
The historic Rand Lease Mine was originally opened in the early 1900's by Rand Leases (Vogelstruisfontein) Gold Mining Company Limited and has been responsible for producing 10.6m ounces of gold at average grade of 5.87 g/t since that time. Sitting immediately east of the DRD Lease, the Rand Lease is also intersected by all reefs contained in the Central Rand Group, namely, the Main Reef, South Reef, Bird Reef, Kimberley Reef and Elsburg Reefs. The Lease was mined at depth on all reefs with the Main Reef Leader and South Reefs proving to be the most productive and lucrative.
Radiant Resource
The Radiant Resource is viewed as a priority for its open cut and underground potential. The current JORC Inferred Gold Resource at Radiant is 271,000 ounces, at an average grade of 1.71g/t down to 300m. The Radiant Resource is a 1.3km section of unmined Kimberley Reef located on the eastern margin of Rand Leases. Further drilling is planned to delineate high grade zones within the reef.
The initial exploration plan for the Radiant Resource was to test any near surface mineralisation potentially conducive to open cut mining. However, through the Company's historical data review, it was determined that a 1.3km section of Kimberley Reef had remained unmined on the eastern margin of the lease.
Following this discovery, the exploration team generated a further exploration target immediately to the west of this 1.3km section of reef, through discovering a 5 year mine production forecasting plan (figure 1) prepared by a previous owner of Rand Leases, Rand Mines Limited ('Rand Mines').
The 5 year mine forecasting plan which has delineated a section of the Kimberly Reef, was created circa 1989 illustrating the planned extraction of underground blocks when mining activities were focused on the Kimberley Reef No. 8 band for the period of 1989 through to 1994. The depth from surface of blocks illustrated in the plan ranged from 50m to approximately 600m below surface, with a strike length of approximately 550m. However, these delineated blocks were never mined as Rand Mines ceased operations at Rand Leases in the early 1990's.
Figure 1: 5 year mine forecast plan, click to enlarge
Including both the unmined section of reef and the section illustrated in the mine forecast plan, the conceptual target provided to the Radiant Resource was 22,000-27,000 ozs of gold for the shallow mineralisation and a 1.1-1.3 mozs of gold for the deeper mineralisation.
In December 2008, West Wits announced its gold assay results for the Phase 1 program. The assay results confirmed high grade gold mineralisation extending over the unmined 1.3km strike length. A complete schedule of results can viewed below in Table 1.
Table 1. Assay results from Radiant RC and diamond drill program - Click to view
A total of 3 reverse circulation (RC) and 21 diamond holes were drilled for 5,204m, to a maximum vertical depth of 220m. The program was designed to test both near surface and deeper gold mineralisation on 100m section lines. The majority of drillholes completed in the program, intersected areas of high grade mineralisation (0.5m to 4.5m width) across one or more reefs within the Kimberley Reef Group.
In addition, this exploration program completed two diamond holes (RLKPD020 and RLKPD021) specifically designed to intersect the area of Kimberley Reef described in the discovered 5 year mine production forecasting plan. The assay results from these two holes confirmed the presence of gold mineralisation in multiple conglomerate reef horizons, with identified high grade zones.
Figure 2. Radiant plan view of assay results. Click to enlarge
From this drill program the Radiant Resource achieved 271,000 ozs of gold at an average grade of 1.71 g/t down to an average depth of 300m across a 1.3km strike length. Within the resource 232,000 ounces sit within the inferred category at an average grade of 1.70g/t, and 39,000 ozs at an average grade of 1.79 g/t sit within the indicated category.
This resource remains open at depth and the Company remains encouraged by the size, grade and shallow depth of the resource. It has been a consistent strategy to delineate resources from surface to a maximum of 500 m vertical depth where there is a strong possibility of convertibility to reserves.
The mineralised reef horizons within the resource have been identified as the Upper 9 and the combined interval comprising the Lower 9 and 8 Kimberley Reef conglomerate bands, extensively mined elsewhere across the Company's leases. Initial resource studies have identified internal higher-grade channelised zones, which will assist in the delineation of further extensions both at depth and closer to surface within possible open cut boundaries. There is still significant exploration potential at the Radiant Resource and the Company intends to investigate for mineralisation at depth, at surface outcrop extending west and for parallel mineralised reefs adjacent within historically mined areas east of the current Radiant Resource.
The majority of the resource was assigned an Inferred status due to the need to confirm further understanding of the position of the high grade channelisation.
An infill drill program is expected to be completed in 2010.
Harrier Target
The Company intends to pursue a drilling program focused at the Bird Reef Group within Rand Leases, now known as the Harrier Target. The Bird Reef Group extends into Rand Leases which has a strike length of approximately 3km. Whilst the Bird Reef Group within the adjacent DRD Lease, known as the Raptor Target, has confirmed significant uranium mineralisation, it is the Company's intention to test the Harrier Target for both uranium and gold mineralisation. The Harrier actually had historical gold production.
The initial drilling program targeting the uranium gold mineralisation will be completed in conjunction with the Raptor program in 2010.
Parallel Reef Target
King Target
The King Target is focused on the Main, Main Reef Leader and South Reefs within Rand Leases. These reefs were the most extensively mined reefs historically. As part of its deeper underground exploration strategy, West Wits will look to test existing mineralisation within parallel reefs to the historically mined Main, Main Reef and South Reefs. It is the Company's belief significant mineralisation still exists between the Main and South Reefs and with improved mining methods is extractable, as demonstrated by Central Rand Gold Limited who are undertaking this production strategy on the leases immediately adjacent to the Company's Project Area.
The presence of existing underground infrastructure provides the Company with numerous possibilities and significantly reduces the capital expenditure required to access the targeted underground areas. However, initial investigation will be completed through a surface drilling program.
Such access will enable detailed investigation and testing of parallel reefs and pillars remaining in situ after historical mining concluded, such as the King Target. This investigation will include testing areas adjacent to the historically productive Main, Main Reef Leader and South reef formations, which intersect all the Company's leases.
History and Mining of Rand Leases
This mine was originally christened by Rand Leases (Vogelstruisfontein) Gold Mining Company Limited in the early 1900's. The Rand Lease mine original formed part of the Anglovaal mining house and was closed by that company in 1971. The mine underwent a series of ownership changes in the late 1980's, most notably into the hands of Severin Mining and Development (Pty) Limited (Severin Mining) which mined the Main Reef and Main Reef Leader at outcrop for several years as a junior miner. The Main Reef Leader and Bird Reef were historically the most economic reefs.
After Severin Mining took control of Rand Leases in 1985, it was announced that Rand Leases would be reopened so that mining operations would generate 35,000tpm of run of mine ore. On 20th March 1986, a rights offer raised ZAR16m to build a metallurgical plant and to recommission 6 incline shaft. Mining conditions were difficult and it was decided to re-equip 11 shaft and the KR2 shaft to meet the production budget.
However they eventually stopped operations in the late 1990's because a decreasing gold price and unfavourable market conditions rendered the mine uneconomic. The mine closed and has remained closed to this day.