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 is Stage 1 of West Wits’ plans to exploit the company’s extensive 4.28-million-ounce gold mineral resource estimate at the WBP. 

The two Kimberley reefs – K9A and K9B – will be processed during the life of the project.

Qala Shallows is forecast to produce nearly one-million ounces of gold over its 17-year life span, maintaining a  steady-state output of 70 000 oz/y over nine years at an operational cost below $900/oz. The orebody will be accessed from surface through a decline system developed from the existing Qala adit boxcut.

Development of the strike drives and decline will be by mechanised method, with drill rigs, load-haul dumpers and articulated dump trucks deployed for drilling, face cleaning and hauling the blasted rock to the tips.

The July 2023 definitive feasibility study determined that conventional breast mining in an underhand configuration is the optimal method for the deposit.

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.

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

Net Present Value/Internal Rate of Return
At a gold price of $1 850/oz, the project has a pretax net present value (NPV), at a 7.5% discount rate, of $367-million and an after-tax internal rate of return (IRR) of 53%, with a payback of 4.1 years from the start of construction. 

At a gold price of $2 200/oz, the project’s pretax NPV increases to $531-million, at a 7.5% discount rate, and an after-tax IRR of 72%, with a payback of 3.6 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. At a gold price of $2 200/oz, peak funding decreases to $43-million.

Planned Start/End Date
First gold is targeted for the fourth quarter of 2025.

Latest Developments
A South African development finance institution has started its due diligence process as part of West Wits' 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.