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The company’s broader Witwatersrand Basin project sits on hallowed mining ground — a patch of earth that has yielded a staggering 1.5 billion ounces, or 62,000 tonnes of gold since the early 1900s.
Once ruled by gold mining behemoths such as Rand Mines and Durban Roodepoort Deep, the basin remains the beating heart of global gold mining. To this day, it still wears the crown as the richest goldfield on the planet, responsible for more than 40 per cent of all the gold ever pulled from the Earth.
Between 2021 and 2023, West Wits mapped out a hefty 5.025-million-ounce gold resource across its entire project area. However, it was Qala Shallows that stood out as the launch pad, with 10.7 million tonnes of resource grading 2.98 grams per tonne (g/t) for just over a million ounces, including 383,000 ounces in the reserve category.
With its own adit, decline and shaft already in place, Qala was a slam dunk, offering a rare head start. As mining begins, steady-state output is expected to ramp up from 15,000 to 20,000 tonnes of ore per month early next year to a whopping 65,000 tonnes per month by year three.
Adding to Qala Shallows credentials, the company turned more than a few heads after dropping a blockbuster definitive feasibility study in July. It pointed to a net present value of US$500 (A$755) million and a jaw-dropping 81 per cent internal rate of return, promising economics most juniors only dream of.
The mine is forecast to churn out 70,000 ounces of gold a year for 12 years, generating an eye-watering US$983 million (A$1.5 billion) in post-tax free cash flows at a very conservative gold price of US$2850 (A$4300) an ounce.
Notably, all-in sustaining costs are pegged at just US$1289 (A$1950) per ounce, cementing Qala Shallows as one of the lowest-cost gold producers in the game.
Backed by a beefed-up war chest including $17.7 million from a September equity raise and access to a US$12.5 (A$19) million Nebari loan facility — plus a US$50 (A$75) million syndicated facility pending final conditions, West Wits appears well-funded to push through its production ramp-up phase without tapping the market again.
In a district that has minted mining legends for more than a century, West Wits looks set to script its own golden chapter. With rigs humming, ore piling high and first gold on the horizon, the company’s transformation from explorer to producer is well underway.
And with funding, infrastructure and momentum now all in place, its long-life Witwatersrand dream appears to be rapidly becoming a reality.
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