Name of the Project
Witwatersrand Basin Project (WBP) – Qala Shallows.

Location
At the northern edge of the Witwatersrand basin, in the Central Rand goldfield, south-west of the City of Johannesburg, in Gauteng, South Africa.

Project Owner/s
West Wits Mining.

Project Description
Qala Shallows forms part of the WBP.

The updated results of the definitive feasibility study (DFS) have further enhanced the project’s promising outlook. The project has contained ore estimated at 4.03-million tonnes at 2.71 g/t for 351 400 oz gold.

The two Kimberley reefs – K9A and K9B – will be processed during the life of the project. The Kimberley reef ore produced will be treated at an existing nearby plant on a toll treatment basis. A toll treatment agreement has been signed with the Ezulwini process plant facility and all ore produced will be truck-hauled to this plant, which uses the carbon-in-pulp process for gold recovery.

West Wits’ flagship Qala Shallows project is forecast to produce nearly one-million ounces of gold over its 17-year life span, maintaining steady-state output of more than 70 000 oz/y at an operational cost below $900/oz. Qala Shallows is the first stage of West Wits’ plans to exploit the company’s extensive 4.28-million-ounce gold mineral resource estimate at the WBP. The DFS has determined that conventional breast mining in an underhand configuration is the optimal method for the deposit.

Potential Job Creation
The project is expected to generate about 1 000 jobs over 18 years.

Net Present Value/Internal Rate of Return
The updated DFS has a pretax net present value, at a 7.5% discount rate, of $367-million and a pre-tax internal rate of return of 61%, with a payback of 4.1 years from the start of construction.

Capital Expenditure
The peak funding requirement is $54-million, which is substantially reduced at the prevailing gold price and rand:dollar foreign exchange rate, owing to higher revenue from production during the three-year mine development phase.

Planned Start/End Date
The mine is expected to take three years to develop.

Latest Developments
A South African development finance institution has started its due diligence process as part of securing a proposed R300-million ($15.8-million) debt facility to underpin financing the development of Qala Shallows. The start of the formal due diligence process is a crucial step towards finalising the funding necessary for the start of operations and the transition to a gold producer. The successful completion of this process will represent a significant milestone in achieving the company’s financing goals and support initiatives with other potential funders.

To strengthen its balance sheet and fund its ongoing operations, West Wits Mining has secured firm commitments from unrelated existing and new sophisticated and professional investors to raise A$1.4-million, before costs, through a share placement.

It intends to issue about 107.69-million fully paid ordinary shares at A$0.013 apiece. The proceeds will be used for site maintenance, engineering and production planning at its Qala Shallows project, as well as for project finance activities, including due diligence, and to meet general corporate and working capital requirements.

Contact Details for Project Information
West Wits Mining, tel +61 3 8692 9049 or email info@westwitsmining.com.