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 Shallow forms part of the WBP.

The updated results of the definitive feasibility study (DFS) on Qala Shallows have further enhanced the project’s promising outlook. The project has contained ore estimated at 1.01-million ounces.

The reefs to be processed during the life of the project are the two Kimberley reefs, K9A and K9B.

The Kimberley reef ore produced will be treated at an existing nearby plant on a toll

treatment basis. A toll treatment agreement has been signed with the Ezulwini process plant facility and all ore produced will be truck-hauled to this plant, which uses the carbon-in-pulp process for gold recovery.

The updated DFS envisages production of 10.1-million run-of-mine tonnes, compared with 7.6-million in the DFS. Maximum production has increased from 699 000 t/y in the DFS to 839 000 t/y in the updated DFS, for overall production of 924 000 oz from 688 000 oz.

The mining method and mining have been left unchanged from those used in the 2022 DFS. The only difference between the mining plans relates to mining sequence and timing.

The updated DFS has determined that conventional breast mining in an underhand configuration is the optimal method for the deposit.

Life-of-mine from construction to relinquishment has increased from 15.7 years to 17.7 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated DFS has a pretax net present value (NPV), at a 7.5% discount rate, of $367-million and an internal rate of return (IRR) of 38%, with a payback of five years, compared with an NPV of $180-million and a payback of 4.1 years in the August 2022 DFS. The IRR remains the same.

Capital Expenditure
Peak funding has decreased from $63-million in the August 2022 DFS to $54-million in the June 2023 updated DFS.

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

Latest Developments
Wits Mining has made significant progress with getting water and electricity access to the Qala Shallows mine.

The company is nearing completion of key water access infrastructure at the mine, as well as securing power from a newly built primary power substation called Fleurhof nearby.

The company is working with property developer Calgro M3 to secure potable water supply for the mine, while water supply from utility Johannesburg Water is also being secured.

In turn, West Wits received approval from Joburg City Power for a 7.5 MVA power supply to Qala in April, with the Fleurhof substation being within 1 km of the mine.

The company says it can save on costs with the substation being so close to the mine.

Development of localised infrastructure surrounding the project is also ongoing and supported through community engagement.

Key Contracts, Suppliers and Consultants
Calgro M3 (secure potable water supply for the mine).

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