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
Qala Shallows, the first stage of the WBP, is focused on the development of the Kimberley Ref. This is one of three reef packages that form part of West Wits’ mining right area in the Witwatersrand basin, the other two being Bird reef and Main reef.

The combination of the existing infrastructure and accessible shallow mineral resources enables access for production on a fast-tracked timeframe relative to most global opportunities for underground gold mining.

The Qala Shallows Phase 1 project 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
South Africa’s State-owned Industrial Development Corporation (IDC) has issued a written expression of interest and indicative funding terms in connection with the financing of Qala Shallows, which forms part of the WBP.

A proposed IDC debt facility of R300-million ($15.9-million) for development capital aligns with customary conditions for loan facilities, and showcases the IDC's confidence in the Qala Shallows gold project, West Wits stated in a July 11 media release.  

Funding on the terms indicated by the IDC would provide the foundation for the financing of the entire development plan as outlined in the DFS.

Initial funds would be for mobilising the mining contractor and acquiring essential equipment to initiate operations, enabling the West Wits team to establish a 30 000 t ore stockpile and facilitating the delivery of 15 000 t a month to Sibanye-Stillwater’s plant.

Within a timeline of six to eight months from the start of production, the project will generate revenues from gold production, the release states.

A mine build-up towards supporting steady-state production of 5 000 oz of gold a month is targeted.

West Wits started early works at Qala Shallows in September 2021. Information gathered on underground inspections has advanced knowledge of the orebody and motivated a review and update of the DFS in 2022. Bara Consulting is reportedly conducting a review and update of the Qala Shallows DFS.

A state of operational readiness continues to be maintained at the Qala Shallows project, which will allow for mining operations to restart once project finance is secured.

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

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