AMN - SOUTH AFRICA: Mining starts at Sol Plaatjies

West Wits Mining has started mining at the Sol Plaatjies project within the Soweto Cluster prospecting right area near Johannesburg in South Africa.

Highlights:

Mining operations have started on Stage 1 with a minimum of 130,000 tonnes of ore to be processed in the first 12 months

-          Expectations that higher tonnages will be available either concurrently or subsequent to Stage 1 from Sol Plaatjies

-          West Wits to be paid at a rate equal to prevailing price of 0.6 grams/tonne of gold (currently circa $25) for each tonne of ore mined

-          Potential upside payments through 50:50 share with contractor of surplus cash after costs, 0.6 grams/tonne payment to West Wits and 0.4 grams/tonne payment to the contractor

-          Planning and design is under way to bring numerous other ore positions to the point of mineability, within the previously announced 1.3 Moz JORC resource

-          Pursuing the low risk business model of using third party contract mining and treatment of gold ore, obviating the need for West Wits to commit to operating and capital costs.

The first stage provides for the removal of circa 130,000 tonnes of ore material over 12 months from the first two of five planned pits. Indications are that at least another 50,000 tonnes more are available in the second stage.

West Wits Mining chairman Michael Quinert says: “This is an important milestone for the company on its path to monetise the significant gold resource at the Soweto Cluster.

Sol Plaatjies is the first step, providing cash flow that will be applied to expedite our development plans for the whole tenement.”

Company highlights:

South Africa near surface and underground targets of 1.326 Moz JORC resource - Measured: 302,000 oz, Indicated: 582,500 oz, Inferred: 441,000 oz.

Indonesia: High grade placer deposit; project show early stage similarities with discoveries including Porgera, Edie Creek, Wau. Independent geologists believe source of nuggets likely to be local, based on the size and shape of the nuggets discovered.

www.westwitsmining.com

News courtesy of International Mining