Name of the Project
Witwatersrand basin gold project.

Location
Gauteng, South Africa.

Project Owner/s
West Wits Mining.

Project Description
A scoping study has confirmed a development pathway to rapidly advance the start of a bankable feasibility study (BFS) on the initial target area on the Kimberley reef package.

The scoping study has confirmed the development strategy to produce 50 000 oz/y to 60 000 oz/y at steady-state production.

Five distinct targets have been identified for the staged development of the 33.9-million tonnes grading 3.4 g/t gold resource.

The initial target for development – Qala Shadows – comprises the Kimberley reef package above 500 m depth at the Kimberley East underground target, which consists of up to 17 individual conglomerate bands. Previous mining and West Wits’ exploration to date has targeted the K9A and K9B bands; however, there is further exploration upside, with potential access to additional bands through proposed mine infrastructure. The scoping study proposes development by refurbishing the existing adit, which is expected to include trackless haulage.

The second stage of development comprises the Main Reef package, which consists of the Main Reef and Main Reef leader band. The package? is a priority target, owing to the high gold grade. Historical mining on the reef package has reduced the available tonnages of these orebodies relative to the Qala shaft; therefore, a shorter project life is envisaged, albeit with higher-grade ore available.

Bird Reef East has been identified for the third stage of development, with access planned through the Qala Shallows underground workings.

Stage 4 proposes the development of Bird Reef Central, which is accessible through the existing circular shaft. Development will be independent of the Qala infrastructure, which, combined with a lower-grade profile, results in the project area being scheduled for development after the Bird Reef East operation.

The Qala Deeps area is a prospective depth extension of the Qala Shallows from 500 m to 1 500 m below surface, where the reef dip steepens from 40° at surface to 70° at depth. The water table floods historical mine works at an estimated 200 m below surface. An independent geotechnical report supporting the scoping study found that leaving a water pillar with a width-to-height ratio of 15:1 allows for access to unmined areas at depth, which is applicable to the Qala Deeps target orebodies.

The scoping study proposes a narrow reef breast mining method for the project in the upper sections of the conceptual mine plan, which was the same mining method being used when the historical mine ceased in the early 2000s.  

The BFS will investigate additional mechanised mining techniques, which are expected to provide significant efficiency improvements where the reef dip is greater than 50°.

West Wits plans to enter a toll treating arrangement with one of the local process plant operators, as opposed to allocating capital expenditure for the construction and operation of a process facility.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
West Wits aims to start production in mid-2021.

Latest Developments
West Wits has determined that the scoping study has provided sufficient detail to progress directly to a BFS, which is expected to be completed in September 2020.

The company is expected to raise A$3.4-million from a share placement to sophisticated and professional investors to fund the feasibility study and drilling at the project.

The company has said that it will issue more than 161.94-million new shares, at 2.1c each, to new and existing sophisticated and professional investors under its existing placement capacity.

Key Contracts, Suppliers and Consultants
Bara Consulting (mining consultants – independent scoping study)

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