Name and Location
De Bron-Merriespruit (DBM) gold project, Free State, South Africa.

Client
JSE- and TSX-listed Witwatersrand Consolidated Gold Resources (Wits Gold).

Project Description
The DBM project area comprises a triangular block measuring an estimated 22 km², located between the main Welkom goldfield to the north and the Beatrix and Joel gold mines to the south, which are operated by Sibanye Gold and Harmony respectively.

Within the project area, four gold-bearing conglomerates are developed. These consist of the Beatrix, Kalkoenkrans, B and Leader reefs, all of which occur at the relatively shallow depths of between 480 m and 1 250 m below surface.

The results of a prefeasibility study (PFS) on the project released in June 2012 delineated a probable gold reserve of 23.5-million tons at a grade of 4.1g/t gold (3.1-million ounces), which is contained within that portion of the resource at DBM that occurs at depths shallower than 1 000 m (the orebody starts at a depth of 480 m), and which contains an indicated mineral resource of 26.7-million tons at 5.8g/t gold (4.99-million ounces).

According to the PFS, DBM will be a shallow underground mine, comprising a planned twin-shaft system to 660 m, with average gold production expected to be 200 000 oz/y over an 18-year life-of-mine. Production is expected to peak at 246 777 oz at 5.5g/t during Year 9 and first gold production is expected 47 months after shaft sinking has begun.

Value
Peak capital funding is estimated at R2.37-billion.

Duration
The mine is targeted to be brought into production by 2018.

Latest Developments
Wits Gold has successfully completed an initial three-borehole geotechnical drilling programme for the positioning of shafts at its DBM project.

This drilling programme aimed to obtain geotechnical data with respect to underground conditions through which the shafts would traverse and to detect possible hazardous flammable gas and water occurrences.

Surface geotechnical studies are currently under way for plant infrastructure establishment, while environmental studies continue on schedule in terms of the requirements of the company’s accepted mining rights application. Detailed design on shafts and related infrastructure at the project is on track to take place in mid-2013, while mine development is expected to start during the first half of 2014.

Key Contracts and Suppliers
Geosearch and Turnstone Drilling (drilling contractors), SGS Laboratories (assay analysis), GCS (environmental-impact assessment (EIA) and related studies) and Royal Haskoning DHV, formerly Turgis Consulting, which also completed the scoping study and PFS at the DBM project (detailed engineering and mine designs) and MDM Engineering (metallurgical plant and related design aspects).

On Budget and on Time?
The PFS was completed on budget and on time. The bankable feasibility study is expected to be completed in the second half of 2013. The Department of Mineral Resources has accepted the mining rights application. This is expected to be granted during mid-2013.

Contact Details for Project Information
Wits Gold coporate affairs executive Hethen Hira, tel +27 11 832 1749, fax +27 11 838 3208 or email hethenh@witsgold.com.
Royal Haskoning DHV (Turgis Consulting), tel +27 11 476 2279.
MDM Engineering, tel +27 11 993 4300, fax +27 11 886 9306 or email info@mdm-engineering.com.
Geosearch, tel +27 11 397 3880, fax +27 11 397 6011 or email mail@geosearchgroup.com.
Turnstone Drilling, tel +27 18 771 2226 and fax +27 18 771 2114.
SGS Laboratories, + tel 27 11 680 3466 or fax +27 11 433 3654.
GCS, tel +2711 803 5726, fax +2711 803 5745 or email info@gcs-sa.biz.