West Wits Mining (ASX:WWI) is leading a golden revival in the Golden City, this week bringing in a 2.2 million ounce upgrade to its resource estimate for its Witwatersrand Basin project in South Africa’s Gauteng province.
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The company’s flagship Qala Shallows underground mine now boasts 1.2 million ounces inventory, with the gold pile grading 4.38 grams per tonne.
The resource uplift was mainly carried by two factors. The first, West Wits landed a new prospecting right in the South African region, meaning a further 1.2Moz at 4.36g/t gold was added to the overall area. Secondly, the Australian explorer lowered its cut-off grade to 1.24g/t, down from the original two.
Between these two changes, the MRE at Qala Shallows has now been moved to the “measured and indicated” categories as West Wits progresses; as much as 50% of the global resource is now under that marker.
The update puts West Wits “in a strong position to advance Qala Shallows to steady-state production,” the company’s CEO, Rudi Dyesel, said Monday.
“The grand of PR 10839 [the aforementioned prospecting right] provides a seamless depth extension to Qala Shallows, exactly where we want future tonnes and ounces to come from,” he continued. “Importantly, more than half of the global MRE is measured and indicated, underpinning our development strategy.”
First pour will be completed in March, the West Wits chief confirmed. Production expansion and mine life extension are also key targets. Those will be supported by the company’s recently completed institutional capital raise.
Once Qala Shallows is through those hurdles, it will produce 70K/oz a year.
After Tuesday’s open, WWI has been selling at ~7.5cps.
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