Marc Watchorn, CEO, Wits Gold
Send this article to a friend
Print this page

» Fleming fingers Wits Gold
» Wits Gold switches to TSX

» JSE:WITWATERSRAND CONS GOLD RESOURCES:
8750c 0%

Wits Gold mulls repositioning
David McKay
Posted: Wed, 07 Nov 2007

[miningmx.com] -- WITWATERSRAND Consolidated Gold Resources (Wits Gold) is considering refining its strategy to coincide with its proposed secondary listing on the Toronto Stock Exchange, said CEO Marc Watchorn.

“We’re considering a slight repositioning because we believe our southern Free State resources could come to fruition,” Watchorn said.

There are 10 million to 20 million ounces of gold resources in that region, which could provide opportunities for other existing operators to consider brownfield expansion. The resources are similar to those on which the Beatrix mine, owned by Gold Fields, has been built, said Watchorn. “The grades are a bit lean; not hallelujah grades, but very typical of Beatrix.”

That would be an interesting development for Wits Gold, a company that’s traded off potential rather than actual production of gold.

Click Here to subscribe to our daily newsletter
Amid forecasts of much improved gold prices and fears that South Africa can’t find new resources, Wits Gold’s potential for producing cash flow is a welcome surprise.

Said one analyst: “My whole investment career has been based on never being long on gold, but I was impressed with Wits Gold because its message was so simple.”

That message has been to sell itself to raging gold bulls. Only in Toronto it may have the opportunity to defy its critics who believed the company – which owns about 159.7 million oz of gold – was a clever spin on the rising gold price.