- West Wits Mining (WWI) sees strong results from its definitive feasibility study (DFS) at its Witwatersrand Basin Project (WBP) in South Africa
- The company has completed a DFS of one of its five parts of the mine, the Qala Shallows
- The DFS supports an underground mining operation with a robust rate of return over a 17 year life of mine
- Qala Shallows alone has a 7.3 million tonnes at 2.81 grams per tonne recovery grade and an all in sustaining costs of an estimated US$1144 (about A$1554) ounces of gold
- Despite this positive news, West Wits is down 12.1 per cent and is trading at 5.8 cents per share at 11:18 am AEST
West Wits Mining (WWI) has seen strong results from its definitive feasibility study (DFS) at its Witwatersrand Basin Project (WBP) in South Africa.
The DFS supports an underground mining operation with a robust rate of return over a 17 year life of mine.
West Wit’s DFS is for only one of the five parts of the mine – the Qala Shallows.
The Qala Shallows Project is just the first stage of the process to explore the potential of the whole WBP area.
Results from the DFS shows a declared ore reserve of three million tonnes at 2.88 grams per tonne for 278,000 ounces.
Qala Shallows alone has a 7.3 million tonnes at 2.81 grams per tonne recovery grade for 663,000 ounces of recovered gold for WBP’s initial stage.
All in sustaining costs (AISC) of an estimated US$1144 (about A$1554) ounces of gold with a steady AISC of US$1027 (around A$1395) ounces.
Peak funding requirement is US$50 million (nearly A$68 million) and a 5.5 year pay back period.
Notably, Qala Shallows represents an estimated 40 per cent of the total planned production of the total potential of the WBP.
West Wits is expecting to commence developing Qala Shallows this month.
Managing Director Jac van Heerden said the completion of the DFS was a key achievement in West Wit’s journey.
“Historically, the Witwatersrand Basin produced more than 35 per cent of total global gold production and here we stand today, with positive DFS results, at the dawn of a gold revival in the same area,” Mr Heerden said.
“We are greatly encouraged with the result of this report, as we now strive to unlock significant value for our investors and shareholders, with this first of five stages of development. Additionally, we are also looking forward to progressively stimulating the local economy as we start to engage skills, local contractors and service providers from the area.”
Despite this positive news, West Wits was down 12.1 per cent and was trading at 5.8 cents per share at 11:18 am AEST.