MINNEAPOLIS, April 24, 2006 (PRIMEZONE) -- Wits Basin Precious Minerals Inc. (OTCBB:WITM) today announced it has moved into the due diligence phase of the previously announced project with Journey Resources Corp. (TSX-V:JNY) and its wholly-owned subsidiary Minerales Jazz S.A. de C.V.. As a result, Wits Basin may acquire an undivided 50% interest in certain mining claims comprising the Vianey Mine Concession located in the state of Guerrero, Mexico approximately 250 kilometers south of Mexico City and 160 kilometers north of Acapulco.
Commenting on the developments, Vance White, CEO of Wits Basin, said "We have made the requisite payment of restricted stock to Journey allowing us to move forward with our site visits, review of technical data, and research title work. We believe we will complete this phase by June 15. Furthermore, we are proud to announce that this next step in our silver project will be led by Dr. Clyde Smith. Mr. Smith comes to Wits Basin as a result of our consulting agreement with Charles Mottley, President and CEO of El Capitan Precious Metals, Inc. (OTCBB:ECPN). Mr. Mottley serves as a member of the Board of Directors of The National Mining Association. As part of his commitment to Wits Basin, Mr. Mottley has made a recommendation for additional team members for Wits Mining. Through Mr. Mottley, Wits Basin has enlisted the consulting services of Dr. Clyde Smith to assist us in both our Bates-Hunter project and now our Journey Resources Silver venture.
Wits Basin believes that the Vianey Mine in Mexico and immediately contiguous property could host millions of tons of ore grade material.
About Dr. Smith
Dr. Smith holds a B.A. from Carleton College, a M.Sc. from the University of British Columbia, and a Ph.D. from the University of Idaho. He is a registered Professional Engineer with the Association of Professional Engineers and Geoscientists of British Columbia. Dr. Smith has founded or co-founded five exploration companies and is responsible for the discovery of four deposits: the Jason lead-zinc-silver deposit, Yukon Territory, Canada; the Santa Fe gold deposit, Nevada; the North Lake gold deposit, Saskatchewan, Canada; and the Solidaridad gold-silver-copper deposit, Mexico. He is currently engaged in a gold-platinum project in Nevada and serves as the consulting geologist for El Capitan Precious Metals, Inc. on its El Capitan gold-platinum group metals project in New Mexico.
About Mr. Mottley
In addition to his active service as President and CEO of El Capitan Precious Metals, Inc. (OTCBB:ECPN), Mr. Mottley serves as a member of the Board of Directors of The National Mining Association.
About Wits Basin Precious Minerals Inc.
We are a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. 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. (OTCBB:WITM) visit our website at www.witsbasin.com.
Forward-Looking Statements and Risk Factors
Certain statements contained in this press release are forward-looking in nature and are based on the current beliefs and assumptions of our management. Words like "may," "could," "should," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict," and similar expressions and their variants may be used to identify forward-looking statements. 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.
The exploration for and development of mineral deposits involves significant financial risks, which even experience and knowledge may not eliminate, regardless of the amount of careful evaluation applied to a process. While the discovery of a mineral deposit may result in substantial rewards, few properties are ultimately developed into producing mines. Moreover, we cannot make any estimates regarding probable reserves and mineral resources in connection with any of our projects and any estimates relating to possible reserves are subject to significant risks. Therefore, no assurance can be given that any size of reserves or grades of reserves will be realized. If a discovery is made, the mineral deposit discovered, assuming recoverable, may differ from the reserves and mineral resources already discovered and recovered by others in the same region of the planned areas of exploration.
The cost of exploration and exploitation can be extensive and there is no assurance that we will have the resources necessary or the financing available to pursue projects we currently hold interests in or to acquire interests in other mineral exploration projects that may become available. The risks are numerous and detailed information regarding these risks may be found in filings made by us with the Securities and Exchange Commission, including our most recent annual report on Form 10-KSB, quarterly reports on Form 10-QSB and reports on Form 8-K.