ASX-listed West Wits Mining says it has been motivated by the recent strengthening of gold prices to begin a strategic review of its plans for the entirety of the Witwatersrand Basin Project (WBP), in South Africa.

The strategic review is in addition and complementary to the company’s continuing priority to progress the finalisation of funding to begin operations at the Qala Shallows gold project, in Gauteng.

The company says this strategic review will involve reassessing key project assumptions of the Qala Shallows Mine Plan and related projects across the entire WBP.

The company says it is of the view that a strategic reassessment is warranted given the sustained increase in the gold price, which now exceeds $3 000/oz, and materially exceeds the gold price assumptions used when the original plans were finalised.

The outcome of this strategic review will assist West Wits in setting its vision, plans and key goals for the WBP over the next three to five years. In light of the current gold price environment. West Wits says it has determined that a full review is both timely and critical to maximising the value of the WBP.

Under this initiative, several key project development areas within the WBP will be revisited to assess their potential under current economic parameters.

QALA SHALLOWS MINE PLAN OPTIMISATION

The company points out that the Qala Shallows life-of-mine (LOM) plan and budget were last updated in July 2023 by independent mining engineers Bara Consulting as part of the definitive feasibility study (DFS).

The company says the review of the LOM will focus on evaluating lower cut-off grades and previously excluded mining blocks, which may now be potentially more viable under the current gold price environment.

It notes that unlocking these zones could increase the ore reserve base and support an accelerated production ramp-up, to enhance project economics.

West Wits notes that the WBP comprises three distinct reef mining targets, each slated for sequential development: the Kimberley Reef – where Qala Shallows is located, Main Reef and Bird Reef.

MAIN REEF

The WBP’s Main Reef project targets high-grade gold remnants located about 800 m north of the Bird Reef. The company explains that the orebody is accessible through existing infrastructure, requiring a minimal surface mining footprint and offering a low environmental impact.

Historically, parts of the Main Reef were excluded from planned development owing to economic thresholds. These areas will now be reassessed in the context of current gold prices.

Additionally, West Wits says the potential to explore the largely unmined North Reef from the Main Reef horizon will be investigated.

BIRD REEF CENTRAL

Situated about 800 m north of the Kimberley Reef, the Bird Reef horizon contains both gold and uranium mineralisation.

West Wits says the improved prevailing gold prices enhances the potential feasibility of extracting gold independently or in conjunction with uranium.

In particular, the Bird Reef Central’s (BRC’s) relatively lower-grade gold deposit, previously considered marginal, now warrants reevaluation under current gold price conditions.

The company expresses that this opens a strategic opportunity, never before tested, to consider the BRC uranium resource.

The declared Joint Ore Reserve Committee- (Jorc-) gold mineral resource estimate for BRC is 1.38-million tonnes of ore at 2.66 g/t, for a total of 118 000 oz of gold.

West Wits has developed an exploration plan aimed at seeking to convert the Bird Reef Central’s uranium exploration target into a Jorc-compliant mineral resource estimate, which will underpin future development decisions.

This also provides an opportunity to fast-track the exploration and infill drilling programme, advancing both the gold and uranium components as part of a broader long-term combined strategy, says West Wits.

SHAFT 6 DEVELOPMENT

Shaft 6, an existing incline shaft near Qala Shallows, was historically used in the early 1900s to mine the adjacent Main Reef and Main Reef Leader deposits from surface.

Owing to the mining economics of that era, West Wits says several remnant blocks and pillars were left in situ, presenting a potential opportunity for mining these remaining areas of high-grade material under current market conditions.

West Wits says it will investigate the feasibility of refurbishing and reintegrating Shaft 6 into the broader mine development plan, noting that its strategic location and existing infrastructure offer a compelling opportunity to de-risk and fast-track further underground development across the WBP.

While preliminary site activities have already begun, Shaft 6 will now undergo a formal review evaluation as part of the broader optimisation strategy.

PROJECT 200 RE-EVALUATION

West Wits notes that a scoping study for the WBP, announced in March 2022, confirmed the overall WBP potential to evolve into a long-term gold mining operation.

The study outlined a run-of-mine production target 1.61-million ounces over a 27-year LOM, averaging a 76 500 oz/y between years five to 16 and the potential to build up to a peak production rate of 92 000 oz in year 6.

The scoping study and any production target under the scoping study contain inferred mineral resource estimates.

West Wits says the directors confirm that it is reasonable to include these inferred mineral resources in the well-understood and researched structure of the Witwatersrand Basin and the views provided to West Wits by independent geological expert consultants, given the project’s location and geology.

Based on these results, West Wits initiated additional studies to identify and address the engineering and operational requirements necessary to achieve a significant increase in production.

This led to the conceptualisation of Project 200, which targets aspirational production of 200 000 oz/y.

A preliminary trade-off analysis indicated the potential merits of progressing to a further scoping study on increasing the WBPs production potential.

The recent granting of Prospecting Right PR10730 by South Africa’s Department of Mineral Resources and Energy further strengthened the project’s long-term potential and increased the WBP’s mineral resource estimate to 5.03-million ounces at 4.66 g/t gold, further reinforcing the case for advancing planned studies for Project 200.

A phased development approach is now under consideration, supported by further technical studies evaluating Project 200’s potential contribution to the broader WBP.

FORWARD STRATEGY

West Wits says it is undertaking these reviews with a focus on unlocking additional value for shareholders from the WBP in the current higher gold price environment.

It notes that results of this work, when released, have the potential to increase clarity for the company and the investor market around the longer-term vision and plans to maximise realisable value from the WBP.

In parallel, and subject to funding progress, the company notes that it continues to evaluate its forward exploration and feasibility strategies to ensure its development pipeline remains robust and aligned with long-term growth objectives.

Independently of these initiatives, the company is steadfastly progressing its plans to commence operations at its Qala Shallows gold project.

West Wits says it continues making positive progress for finalising funding to commence operations at its Qala Shallows gold project. Updates on the progress of funding will be provided as and when available.

In the meantime the company says it has secured interim loan funding of $550 000 at 10% interest per annum (capitalising) to provide ongoing working capital pending finalisation of the Qala Shallows funding package.

Upon securing funding, mobilisation to begin operations at Qala Shallows will start immediately and the company will transition to a developer/producer quickly.

The company expresses that it sees Qala Shallows as the beginning of its larger plans for the WBP and beyond.