Name of the Project
Witwatersrand basin project (WBP) – Qala Shallows Stage 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 is Stage 1 of 5 of West Wits Mining’s WBP, with Qala Shallows representing an estimated 40% of the total planned production of the total potential of the WBP1.

The project has a substantial maiden ore reserve of three-million tonnes grading 2.88 g/t gold, which includes a proven ore reserve of 830 000 t.

The definitive feasibility study (DFS) completed on the Qala Shallows supports the development of an underground mining operation with a robust rate of return over a 17-year life-of-mine.

The reefs to be processed during the life of the project are the two Kimberley reefs, K9A and K9B. The Kimberley reef is a free milling ore containing minor quantities of sulphides, mainly pyrite.

The Qala Shallows has the potential to ramp up to run-of-mine steady-state production of about 53 000 oz/y and peak production of 60 000 oz/y.

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

First ore is expected to be extracted 12 months from the  start of development, building up to an annualised production of 25 000 oz/y of gold after 30 months, and reaching full steady-state production of 53 000 oz/y of gold after Year 4.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
At a gold price of $1 750/oz, the project has a pretax net present value, at a 7.5% discount rate, of $151-million and an internal rate of return of 35%, with a payback of 5.5 years.

Capital Expenditure
The project requires peak funding of about $50-million.

Planned Start/End Date
Development of the project is planned to start in September 2021.

Latest Developments
Construction and rehabilitation of the Qala Adit boxcut, brow and adit support have been completed.

A secondary entry point to Qala Shallows (the 12E Winze shaft) has been rehabilitated for early access, which allows for the sampling and surveying of extended areas of underground workings. All
development and decline production equipment have been delivered and commissioned, including a 10 t and a 7 t load, haul and dump vehicle; a twin boom drill rig; and utility vehicle.

The following equipment is scheduled for delivery in the current quarter:
• a 20 t haul truck to transport ore from underground to surface,
• a single-boom drill rig for ore drive development,
• hydraulic electric hand drills for stoping and
• winches to move broken ore to ore drives for loading.

Key Contracts, Suppliers and Consultants
Bara Consulting (DFS) and Modi Mining (early mining initiative’s activities) and Siyabhowa-Humba Joint Venture (civil contractor – supply and install surface bulk supply infrastructure to offices and underground workings).

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