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
The Qala Shallows Phase 1 project forms part of West Wits’ WBP and covers a 60% subsection of the WBP scoping study.

Phase 1 has a declared ore reserve of 3.2-million tonnes grading 2.81 g/t, and total mineral resources estimated at 29.05-million tonnes grading 4.58 g/t gold.

Total production is estimated at 680 000 oz of gold over a 15.7-year life-of-mine (LoM).

Steady-state production is estimated at 55 000 oz/y for ten years.

Phase 2, or Project 200, aims to substantially increase production to 200 000 oz/y of gold. A scoping study is scheduled for 2023 to determine additional infrastructure capital expenditure. Additional infrastructure includes process and tailings storage facilities, shafts and access points.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7.5% discount rate, of $180-million and an internal rate of return of 38%, with a payback of five years.

Capital Expenditure
Peak funding is estimated at  $63-million.

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

Latest Developments
West Wits has reported that it has been in advanced discussions with multiple funders to secure a funding solution for the WBP.

West Wits said on April 28 that various forms of potential financing were under consideration, including debt, quasi debt involving attaching equity rights, royalty finance, gold streaming finance and equity capital.

As such, the company has been engaging with a range of financiers and expects that the ultimate financing solution will likely involve a combination of financing structures.

At the release of the company’s West Wits quarterly activity report for the first quarter ended March 31, the company said it had raised $1.6-million through the issue of shares at $0.014 a share during the first quarter through more than 107-million fully paid ordinary shares for $1.5-million in a placement to unrelated sophisticated and professional investors, as well as more than seven-million fully paid ordinary shares for $98 000 under the share purchase plan to eligible shareholders. One sentence?

“The company is pleased with the progress of these discussions and remains confident [that] it will . . . secure commitments to finance the recommencement of operations in the near term,” West Wits has said.

Key Contracts, Suppliers and Consultants
Modi Mining (mining contract); and Bara Consulting (LoM production profile).

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