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

Location
The project is situated about 15 km west of the Johannesburg central business district, in South Africa's Gauteng province.

Project Owner/s
Explorer, developer and producer of high-value precious and base metals West Wits Mining.

Project Description
Qala Shallows is an integral part of the WBP. An updated definitive feasibility study (DFS), released on July 23, 2025, highlights improved results and reinforces the project's robust value and strong economic fundamentals. 

The reefs to be processed during the life of the project are the Kimberley reefs – K9A and K9B.

The total Joint Ore Reserves Committee- (Jorc-) compliant mineral reserves are estimated at 4.6-million tonnes grading at 2.60 g/t for 383 934 oz of gold. The total Jorc-compliant mineral resources for the K9A reef are estimated at 8.1-million tonnes grading at 4.8 g/t gold for 1.2-million ounces of gold, and 10.5-million tonnes at 4.5 g/t gold for 1.5-million ounces of gold for the K9B reef.

The mine plan has been optimised with a lower cutoff grade of 1.31 g/t (reduced from 2 g/t in 2023), allowing for the inclusion of additional ore and accelerating the production profile. The project uses a conventional breast mining method in an underhand configuration, considered optimal for the Qala Shallows deposit. 

The stopes will be accessed by strike drives developed on the K9B reef horizon and K9A and K9B stopes will be accessed from this infrastructure. The strike drives will connect to a decline system developed from the existing Qala adit boxcut, located centrally in the mining area and in the footwall of the K9B reef.

Steady-state gold production is estimated at 70 000 oz/y over a 12-year period, an increase from nine years in the 2023 DFS. 

Total gold production over the 16.8-year life-of-mine is projected at 944 000 oz, up from 924 000 oz over 17.7 years in the 2023 DFS. The maximum production rate is estimated at 860 000 t/y (2023 DFS: 839 000 t/y), with an average gold production of 56 000 oz/y (2023 DFS: 51 000 oz) and peak production of 75 000 oz in Year 6. The total run-of-mine tonnes are estimated at 10.7-million (2023 DFS: 10.2-million tonnes).

Ore processing will be conducted at the Ezulwini process plant, a subsidiary of Sibanye-Stillwater, on a toll treatment basis. The plant uses carbon-in-pulp for gold recovery. 

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated DFS shows a pretax net present value, at a 7.5% discount rate, of $719-million (compared with $367-million in 2023) and an internal rate of return of 93% (compared with 61% in 2023). Payback from the end of the peak funding period is estimated at eight months and at 3.3 years from the start of development.

Capital Expenditure
Peak funding is estimated at $44-million over a 2.6-year period, a reduction from $54-million over three years in the 2023 DFS.

Planned Start/End Date
The first gold pour at Qala Shallows is slated for the first quarter 2026.

Latest Developments
West Wits Mining issued a drawdown notice for a first tranche of $12.5-million from a loan facility on November 17 to advance the development of Qala Shallows.

The company has satisfied all conditions precedent for the first tranche from Nebari Natural Resources Credit Fund II LP.

The $12.5-million represents the first of up to three Nebari tranches, from which West Wits will be able to absorb a further $22.5-million.

Once received, the funds will be used to secure Qala Shallows’ first gold pour in March.

This first development funding serviced by debt provides the capital to continue progressing Qala Shallows while reinforcing the quality of this asset and the ability of West Wits to transition from developer to producer.

A 30 000 t ore stockpile by the end of the first quarter of 2026 will ensure a consistent supply of ore to the Ezulwini processing plant 40 km away, which is part of a toll treatment agreement already concluded with precious metals major Sibanye-Stillwater, Ezulwini’s owner. 

Nebari MD Justin Anderson has described the first tranche as representing “an important milestone in advancing the Qala Shallows development”, while adding that Nebari is looking forward to continuing its support as West Wits progresses towards production.

West Wits has prepared all operational procedures and health and safety standards across all disciplines to ensure safe, productive, and efficient mining operations.

A credit-approved term sheet for a senior debt syndicated loan facility of up to R902.5-million ($50-million) has also been secured from South Africa’s Absa bank and the State-owned Industrial Development Corporation of South Africa.

Key Contracts, Suppliers and Consultants
Bara Consulting (independent mining engineers, undertaking the DFS review and update); Modi Mining (mining contractor); Industrial Development Corporation of South Africa and Absa Bank (lenders for the syndicated loan facility); and Sibanye-Stillwater's Ezulwini process plant facility (toll treatment agreement for ore processing).

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