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

Location
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
Precious and base metals explorer, developer and producer West Wits Mining.

Project Description
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.

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
West Wits has announced the launch of a comprehensive strategic review of its WBP, describing it as both timely and essential in light of the sustained increase in gold prices.

This initiative is in addition to the company’s ongoing priority of securing funding to begin mining operations at the Qala Shallows project.

The strategic review will re-evaluate key assumptions behind the Qala Shallows mine plan and related components across the broader WBP. With the gold price now exceeding $3 000/oz—significantly higher than the assumptions used in earlier planning—West Wits believes a reassessment could uncover new opportunities to enhance project value.

The outcome of this process will guide the company’s planning and goal-setting for the next three to five years. Several aspects of project development within the WBP will be reconsidered, factoring in current economic conditions.

The life-of-mine (LoM) plan for Qala Shallows, last updated by Bara Consulting in July 2023 as part of the definitive feasibility study (DFS), will undergo further scrutiny. The review will examine the potential to lower cutoff grades and reconsider previously excluded mining zones, which may now be economically viable. Unlocking these areas could increase ore reserves and accelerate ramp-up, boosting overall project economics.

Among the WBP’s key targets is the Main Reef project, situated roughly 800 m north of the Bird reef. This orebody can be accessed via existing infrastructure, minimizing surface disturbance and reducing environmental impact. Historically, sections of the Main reef were excluded from development owing to economic constraints, but these will now be reassessed under the current gold price environment.

The company also plans to evaluate the potential of exploring the largely untouched North reef, accessible from the Main reef horizon. This includes the Kimberley, Main, and Bird reefs. The Bird reef horizon, about 800 m north of Kimberley reef, contains both gold and uranium mineralisation. With stronger gold prices, the feasibility of extracting gold—either alone or alongside uranium—has improved significantly.

Specifically, the company intends to reassess the Bird Reef Central (BRC) deposit, a lower-grade gold zone previously deemed marginal. The current price environment makes a re-evaluation worthwhile, potentially unlocking a strategic opportunity to examine the uranium resource at BRC—an avenue not previously explored.

According to the latest Joint Ore Reserve Committee- (Jorc-) compliant estimate, BRC holds 1.38-million tonnes of ore at 2.66 g/t gold, equating to 118 000 oz. West Wits has developed an exploration programme aimed at converting BRC’s uranium exploration target into a Jorc-compliant mineral resource, supporting future development decisions.

This exploration effort will also accelerate infill drilling across both gold and uranium targets, aligning with the company’s broader long-term strategy.

The company is also turning its attention to Shaft 6, an existing incline shaft near Qala Shallows that was originally used in the early 1900s to mine adjacent reefs. Many remnant ore blocks and pillars were left behind due to the economic conditions at the time. These may now present viable high-grade opportunities.

West Wits is evaluating the feasibility of refurbishing Shaft 6 and integrating it into the larger development plan. Its strategic location and infrastructure make it a strong candidate for supporting and accelerating underground expansion within the WBP. Although some site work has already begun, Shaft 6 will now be formally reviewed as part of the company’s broader optimisation strategy.

The WBP’s long-term potential was initially confirmed in a March 2022 scoping study, which outlined a run-of-mine production target of 1.61-million ounces over 27 years, with average annual output of 76 500 oz between years 5 and 16, peaking at 92 000 oz in year 6. These targets include inferred resources and are considered reasonable based on the well-documented geology of the Witwatersrand basin and expert input.

Building on these foundations, West Wits launched Project 200, an aspirational initiative targeting annual production of 200 000 oz. A preliminary trade-off study indicated strong potential, justifying further scoping work to expand production capacity.

The company’s case for growth has been bolstered by the recent award of Prospecting Right PR10730 by South Africa’s Department of Mineral Resources and Energy. This has increased the WBP’s mineral resource estimate to 5.03-million ounces at 4.66 g/t gold, further reinforcing the rationale for Project 200 and the phased development strategy now under consideration.

West Wits says the reviews planned aim to unlock more value from the WBP, leveraging today’s elevated gold prices. The company expects that the insights gained will help clarify its long-term vision and provide the market with a more defined roadmap for future growth.

Alongside the strategic review, the company remains focused on finalising funding to commence operations at Qala Shallows. Interim funding of $550 000, secured at 10% per annum interest (capitalised), is currently supporting working capital needs while the final funding package is completed.

Once funding is in place, mobilisation at Qala Shallows will begin immediately, marking West Wits’ transition from a developer to a gold producer.

The company sees Qala Shallows as the first step in a much larger plan for the WBP and beyond.

Key Contracts, Suppliers and Consultants
Not disclosed.

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