Wits Basin Provides China Iron Ore Production Projections; Plan to Acquire Major China Asset
MINNEAPOLIS--(BUSINESS WIRE)-- Wits Basin Precious Minerals Inc. (WITM) is pleased to announce that the contractor for the Xiaonanshan Mine, "The Anhui Zhonghai Mining and Trading Company" (AZHM&T Company), has provided Wits Basins' engineering team with projected production output for the next six quarters. These projections include the Xiaonanshan Mine ("XNS") plus a new iron ore property called the "Jianshan Property." After reviewing these projections, the engineers have agreed with the provided assumptions used in the calculations.
These steps put the planned output by the end of 2014 at an annualized run rate of more than one million tonnes of concentrate.
Projections of XNS plus Jianshan Property
Here are the estimated totals of concentrate by quarter:
Q3 2013: 30k
Q4 2013: 90k
Q1 2014 150k
Q2 2014 180k
Q3 2014 240k
Q4 2014 300k
The increase of annual production, particularly in the 2nd half of 2014, can be attributable to the addition of the production of the Jianshan Property to that of the XNS.
The XNS began a re-start in April 2013. This work includes ore stockpile, infrastructure safety development and site management. Production from XNS is expected to be the amounts listed above for Q3 2013 and Q4 2013.
China Global Mining Resources (BVI) Limited ("CGMR") and AZHM&T Company entered into an agreement to achieve certain milestones and benchmarks that include "JORC" standard drilling to be performed on the new assets of "Jianshan" as well as additional resource development drilling at XNS.
Upon the achievement of these milestones, CGMR will issue shares to AZHM&T Company that will represent, after such issuance, up to a maximum of 49% of the total equity, based on pro-rata assets as contributed. As part of this share issuance, AZHM&T Company will terminate its 35% of net cash flow management fee as described on our website.
The Company is in the process of receiving and reviewing bids for these drilling and resource development costs. This is occurring at both the existing XNS as well as the Jianshan Property. The Company expects the next news release will disclose the timing and cost of these JORC resource development drilling. This release is planned to occur before the end of Q3.
About Wits Basin Precious Minerals Inc.
Wits Basin is a minerals exploration and development stage company that owns a 75% equity interest in China Global Mining Resources (BVI) Limited, which owns the Xiaonanshan Mine, located in Anhui Provence of The Peoples Republic of China. 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.
New website development is underway and planned to be released during the 3rd quarter of 2013. For now, Wits Basin has posted photos of the mine's current operations at: http://witsbasin.com/photos.html
Furthermore, the Company has posted a detailed Q&A of FAQs on its website. Shareholders can submit additional questions by writing to: firstname.lastname@example.org
Forward-Looking Statements and Risk Factors: Certain statements included in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. 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. These risks and uncertainties relate to the Company and its subsidiaries, and include, among others, the ability to obtain or maintain regulatory approvals; the ability to obtain necessary financing; and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission.
Wits Basin Precious Minerals Inc.
Al McLellan, +1 646-937-8790
KEYWORDS: United States Asia Pacific North America China Minnesota
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