West Wits Mining moves ahead with Derewo gold project

ASX-listed West Wits Mining Limited said it is moving forward with its Derewo River gold project in Papua province.

It said a logistics office has now been established at Nabire, providing support base for Derewo from which to deliver materials, suppliers, survey teams and exploration teams.

The topographic survey necessary for planning the hydraulic alluvial operation to be established at Derewo has been completed two weeks ahead of schedule.

?This survey allows for finalization of a mine plan providing locations for water storage dams, tailings dams and settling ponds all forming part of the gravity circuit for processing the high grade alluvial gravels.?

The completion of this work allows the company to begin evaluating what tonnages can be processed per month through the circuit.

The completion of this survey puts the company ahead of the timeline to establish an alluvial operation by January 2012 and then ramp up production over the first quarter of 2012.

The company said that the granted mining lease in which the alluvial gravels are located has been extended for a further 10 years.

?This extension now provides the company with security over this mining project until 2023 and paves the way for multiple alluvial circuits over the longer term,? it said. (romel)