West Wits accelerates development at Qala Shallows with funding secured and DFS update underway

West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) is pressing ahead with mine development activities at its flagship Qala Shallows Project, supported by a forthcoming A$14 million capital raise and an increase in ownership of the broader Witwatersrand Basin Project (WBP) to 74%.

Key work streams include the buy-back of minority interests in its South African subsidiary, an optimised Definitive Feasibility Study (DFS) reflecting stronger gold prices and improved economics, mobilisation for ore extraction at Qala Shallows, and progress on its long-term Project 200 expansion strategy.

“It is with great excitement that we kick-off the Qala Shallows Project. The West Wits team undertook extensive preparatory work to ensure that the project will be delivered as a safe, productive and within-budget operation. Service supplier agreements have now been executed with initial orders placed and the first piece of equipment to be delivered this week,” West Wits CEO Rudi Deysel said.

“As West Wits Mining advances to becoming a gold producer, we will continue to focus on ways to realise the potential of the stunning Witwatersrand Basin Project to further grow the business we are starting.”

Buy-back agreement lifts project ownership to 74%

West Wits has executed a buy-back agreement with the 10% minority shareholder of West Wits SA (WWSA), lifting the company’s effective interest in the WBP from 66.6% to 74%. 

The transaction involves a US$5 million advance from WWI to WWSA, credited against an existing intercompany loan, and is expected to complete by July 2025. 

Repayment is to be sourced from future mine revenues at Qala Shallows, aligning shareholder interest with operational performance.

Optimised DFS to reflect higher gold prices and contracted inputs

Bara Consulting has been engaged to update the July 2023 DFS for Qala Shallows. 

The revision incorporates higher consensus gold prices — spot currently above US$3,300 per ounce — compared to the previous assumption of US$1,850 per ounce, and lowers cut-off grades from 2 grams per tonne. 

The updated study will also factor in contracted capital expenditure (capex) and operating expenditure (opex) for greater accuracy. These revisions are expected to materially improve project economics, including net present value (NPV), peak funding requirements and payback period.

Mobilisation started as site preparations advance

Mobilisation is underway under the leadership of CEO Rudi Deysel, with key equipment en route and infrastructure works initiated. 

An underground load-haul-dump unit (LHD) and diesel generators are being delivered, while mining contractor Modi Mining begins preparations. 

Other works scheduled include box cut construction, electrical system finalisation, workshop fit-out, underground surveying and stope preparation, all targeting the commencement of ore extraction in line with DFS milestones.

Project 200 to scale production to 200,000 ounces per annum

The company is also advancing its broader growth vision through the development of ‘Project 200’, targeting a significant production uplift from 70,000 ounces to 200,000 ounces per annum. 

This strategy leverages the additional orebodies within the WBP’s Mining Right area, including the Main Reef and Bird Reef. 

The upcoming Pre-Feasibility Study will incorporate newly acquired and pending prospecting rights, aiming to increase the Ore Reserve base and provide a pathway to long-term production scalability.