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.

West Wits has executed an agreement with the 10% minority holder of West Wits SA (WWSA) to buy back its entire holding, thereby increasing the holding of West Wits Mining in WWSA to 100%. This increases the company’s ownership of Qala Shallows and WBP from 66.6% to 74%.

The transaction will be facilitated through an advance of about $5-million from West Wits to WWSA, which will be credited to the existing intercompany loan and, ultimately, repaid through the proceeds of operating the Qala Shallows gold mine.

The buy-back will likely be implemented in mid- to late July 2025.

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 Mining has executed definitive legal agreements for a senior syndicated loan facility of up to R875-million to fund project development.

The facility is jointly provided by the Industrial Development Corporation of South Africa, and Absa Bank, through its Corporate and Investment Banking (CIB) division.

West Wits has said that the facility will deliver about 55% of total project funding, with the remaining 45% covered through equity contributions and early operational revenues.

Funds from the facility, once drawn down, will be used to advance the development, construction, commissioning and initial operations of the project.

The facility is proposed to be progressively drawn down upon satisfaction of agreed conditions precedent and repayment will start 24 months after initial drawdown over a 36-month period.

The transaction underscores the lenders’ commitment to supporting sustainable mining and socioeconomic growth in the region.

Meanwhile, having secured recent funding under the A$14-million equity placement, the company has started mobilisation for preproduction works.

Mobilisation efforts at Qala Shallows are progressing, marking the official transition from planning to implementation.

Critical infrastructure is complete and all necessary permits, as well as power and water supply, are in place. Key contracts have been finalised and are being executed, with preproduction works well under way.

Further, a major milestone was achieved in June with the acquisition of the first 7.5 t underground load-haul-dump unit, which was loaded for delivery to the Qala Shallows site on June 30, signalling the movement of key equipment into position.

Mining contractor Modi Mining has been engaged and key personnel hires have been completed, setting the stage for sustained construction and operational ramp-up in the coming months.

Key Contracts, Suppliers and Consultants
Modi Mining (mining contractor).

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