West Wits Lease
The Company will be investigating the potential for shallow uranium and gold mineralisation with respect to the outcropping of the Livingstone, Main and South Reef Groups within this area. A staged exploration approach involving trenching will be undertaken and subject to those results a possible follow up drilling program would be planned with a view to identifying possible open cut opportunities.
Elder Target
Elder Target is focused on the Main, Main Reef Leader and South Reefs on both the West Wits Lease and West Rand Consolidated Lease. The exploration program will focus on high grade near surface mineralisation and will be undertaken in the March quarter 2010.
On 4th May 2010, the Company announced final assay results from its drilling program completed at the Elder Target on the West Rand Consolidated Lease. The Elder Target covers a 5km section of the Main and South Reefs, which historically were the two reefs that provided the major source of underground gold production on the Witwatersrand Goldfield. The 1km section of strike tested returned several intervals of high grade gold mineralisation including;
- 0.75m @ 14.47 g/t Au from 45.03m in WRCMD02
- 3.47m @ 5.31 g/t Au from 50.32m in WRCMD04
- 1.83m @ 3.30 g/t Au from 70.23m in WRCMD05
- 1.07m @ 4.06 g/t Au from 15.28 in WRCMD14
These results further illustrate the potential for near surface economic mineralisation within the Company's western leases. There are a number of further areas to test at the Elder Target both along strike and within areas where high grade drill intercepts were returned which may provide enough geological confidence for a resource estimation.
The Company believes the Elder Target located within 1km of the Mogale Gold Plant could provide further higher grade near surface mineralisation to add to the current Emerald Gold Project.
Lip Target
The LIP Target covers a 1km section of Livingstone Reef which has historically been a source of gold production from open cut and underground mining operations on the West Wits Lease.
The Company has completed an initial sampling program over a small section of the LIP Target which returned several high grade gold values, including a maximum value of 15.03 g/t from exposed outcrop which sits within the historical pit as well as 3.34 g/t Au from samples which sit within the targeted area.
These results will now be followed up through a drilling program to test the down dip and along strike extent and continuity of the mineralisation.
Historical ownership and mining activities of the West Wits Lease
The West Witwatersrand lease (West Wits) was originally a significant part of the Randfontein Estates. Underground mining operations commenced from 1900 and continued until mining operations were suspended in 1964. In the early 1970's, the majority of the old gold mines in the Witwatersrand were closed, mainly because of depressed real gold prices. It was under these circumstances that certain mining rights in the northern part of the Randfontein Estates (West Wits section), were separated and incorporated on 19th May 1971, into Belafrica (Pty) Limited (Belafrica). During 1985, the new Consolidated Mining Corporation (CMC) gained control of Belafrica and, on the 13th September 1985, the company's name was changed to West Wits.
The new entity started underground mining operations in the same year, with minor open cut mining occurring in 1986; large scale opencast mining on the Livingstone reefs began in 1987. Randgold took over management of the company in 1995, merging the underground titles with the adjacent West Rand Cons, Luipaardsvlei and East Champ D'Or Lease areas. The consolidated lease portfolio became incorporated upon the merger with DRD. Historical underground mining operation reached a depth of approx 1,800m below surface. The majority of the underground workings are now flooded with the raising water table.
Historical Production
