Name of the Project
Qala Shallows Phase 1 project.

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’ Witwatersrand Basin project.

A revised definitive feasibility study (DFS) completed in August 2022 has confirmed earlier increased production build-up and improved financial results.

The revised DFS envisages a 7.6-million-tonne run-of-mine operation with a maximum production rate of 699 000 t/y.

The project will have a life-of-mine (LoM) of 15.7 years from construction to relinquishment, with peak steady-state production estimated at 55 000 oz/y over a ten-year period. The mine will average 43 000 oz/y of gold over the LoM.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project’s pretax net present value has increased from $151-million, at a 7.5% discount rate in the 2021 DFS, to $180-million, at a 7.5% discount rate, in the revised 2022 DFS.

The internal rate of return has increased from 35% in the 2021 DFS to 38% in the revised 2022 DFS.

Payback has decreased from 5.5 years to 5 years.

Capital Expenditure
Peak funding has increased from $48-million in the 2021 DFS to $63-million in the revised 2022 DFS.

The increase in peak funding is mainly owing to the accelerated production build-up, which requires additional mining equipment and underground development at an earlier stage of the project.

Planned Start/End Date
A rapid production ramp-up is planned for the fourth quarter of 2022 as part of a formal mine plan under the revised DFS.

Latest Developments
West Wits is working on the execution of a long-term toll treatment agreement.

Key Contracts and Suppliers
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.