Name of the Project
Witwatersrand basin project (WBP) – Qala Shallows Phase 1.

Location
At the northern edge of the Witwatersrand basin, in the Central Rand goldfield, immediately south-west of the City of Johannesburg, in Gauteng, South Africa.

Project Owner/s
West Wits Mining.

Project Description
Qala Shallow forms part of the WBP.

The updated results of the definitive feasibility study (DFS) on Qala Shallows have further enhanced the project’s promising outlook. The project has contained ore estimated at 1.01-million ounces.

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

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.

The updated DFS envisages production of 10.1-million run-of-mine tonnes, compared with 7.6-million in the DFS. Maximum production has increased from 699 000 t/y in the DFS to 839 000 t/y in the updated DFS, for overall production of 924 000 oz from 688 000 oz.

The mining method has been left unchanged from that used in the 2022 DFS. The only difference between the mining plans relates to mining sequence and timing.

The updated DFS has determined that conventional breast mining in an underhand configuration is the optimal method for the deposit.

Life-of-mine from construction to relinquishment has increased from 15.7 years to 17.7 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated DFS has a pretax net present value (NPV), at a 7.5% discount rate, of $367-million and an internal rate of return (IRR) of 38%, with a payback of five years, compared with an NPV of $180-million and a payback of 4.1 years in the August 2022 DFS. The IRR remains the same.

Capital Expenditure
Peak funding has decreased from $63-million in the August 2022 DFS to $54-million in the June 2023 updated DFS.

Planned Start/End Date
Phase 1 is expected to be completed in 2026.

Latest Developments
West Wits Mining has received a written expression of interest from US-based shareholder Wingfield Partners for a debt facility to assist in the financing of the Qala Shallows project.

Wingfield has expressed formal interest and provided indicative terms for a $10-million debt facility on behalf of a consortium of Texas-based investors.

The proposed funding from Wingfield will be done in conjunction with funding contemplated from the Industrial Development Corporation of South Africa (IDC), which could provide up to A$26-million, or nearly 50% of the total funding requirements over the three-year build phase.

Wingfield will work with the IDC due diligence process to expedite completion and progress binding terms.

Key Contracts, Suppliers and Consultants
Calgro M3 (secure potable water supply for the mine).

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