West Wits on track to complete acquisition of Papua gold project

Australia-listed firm West Wits Mining Limited is proceeding to completion of the acquisition of a majority interest in the Derewo River Gold Project. The Derewo River Gold project is located approximately 110km north west of Freeport?s Grasberg complex in the central highlands of Papua.

The Company will develop a hydraulic gold mining project at Derewo by introducing modern mechanised production methods. These activities are expected to enhance our knowledge of the regional geology and assist with targeting the primary hard rock source of the gold nuggets. CSA Global Pty Ltd who independently reviewed Derewo reported; ?based on the high gold grades and the mineralization observed at Area 81, this is a truly outstanding exploration prospect. Gold occurrences like this are extremely rare and this area deserves to be thoroughly explored for a hardrock gold deposit as a source for the alluvials.??.. ?the coarse nature of the gold and the mineralization in the clasts suggests that the source is fairly local.?

The planned exploration program will involve extensive mapping and sampling work as well as the mechanisation and ramp-up of gold mining operations. This project area exhibits favourable geology with significant gold deposits nearby, including Wabu and Grasberg. The exploration target is a Porgera Zone 7 and Wafi/Gobu type deposit.

The Company believes that Derewo River exhibits many similarities consistent with the early stages of several large gold projects on the PNG side of New Guinea. Whilst many well known discoveries have been made on the PNG side of the border relatively few have been made on the Indonesian side until recently for a variety of historical reasons; including political environment and physical isolation. Derewo River provides a promising setting for the pursuit of a well known pattern for development of placer style deposits established over several decades in PNG but not yet undertaken on the Indonesian side.

The exploration area being acquired is approximately 129,000 hectares of mining and exploration leases which is significant in a geological setting such as the Central Highlands of New Guinea.

As previously announced, the Company is seeking to raise $3.5m through a placement and SPP. The majority of funds raised (circa $2m) are to be applied to the Derewo River Gold Project with a further $1.2m to be applied in further drilling of the Emerald project in South Africa. (romel)