PERTH (miningweekly.com) – A scoping study into the Witwatersrand Basin project (WBP) has identified the most optimal development model for the South African gold project, ASX-listed West Wits Mining reported.

The scoping study considered four phased scenarios for the development of the project, and identified the most optimum path, which would deliver a 27-year life-of-mine, and produce 16.1-million tonnes of ore at a grade of 3.11 g/t gold for 1.62-million ounces of contained gold.

The project is expected to produce an average 65 000 oz/y over 25 years, with 76 500 oz/y produced between years 5 and 16 of operations, and peak production of 92 000 oz achieved in year six.

The most profitable scenario estimated an all-in sustaining cost of $1 138/oz for production above 800 m, and $1 198/oz for the final stage of the mining operation, which would operate below 800 m within the Qala Deeps deposit.

The Bird Reef Central deposit has been excluded from the analysis, said West Wits, owing to its lower recovered grade profile and standalone infrastructure costs.

The scoping study estimated a post-tax net present value of $160-million and an internal rate of return of 29%, based on a gold price of $1 750/oz, with the project to require peak funding of $77-million over a four-year period.

“I’m very pleased to bring this report to shareholders. These excellent and robust results from the scoping study confirm our clear strategy to advance the WBP into a significant gold production operation targeting 65 000 oz/y over a long life of 27 years at highly attractive economics,” said West Wits MD Jac van Heerden.

“The team has also commenced a new initiative, Project 200, which aims to increase production at WBP to 200 000 oz/y by increasing the Qala Adits throughput capacity. Stage 1 is well-advanced with the completion of the Qala Shallows definitive feasibility study and commencement of the early mining initiative which aims to achieve early cash flow from estimated production of 5 000 t to 8 500 t ore per month from April 2022.

“This will provide an excellent production springboard as we ramp up Qala Shallows production and advance Stage 2 and 3 feasibilities.”

Van Heerden noted that the recent uranium exploration target also highlighted the potential for uranium as a by-product to gold at the WBP which could add significant value to the operation, benefiting the company’s growth and shareholder value.