The March quarter was a positive one for West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) and its Witwatersrand Basin Gold Project in South Africa as the company made a number of developments and strategic engagements with a focus on key financial advancements to support mine development.
Most notably, a South African Development Finance Institution commenced due diligence for mine development at the company’s flagship Qala Shallows project — a cornerstone of the Witwatersrand Basin Project. This was a crucial step toward finalising the funding needed to begin operations to transition to a gold producer.
Securing financing and commencing operations at Qala Shallows is a priority of West Wits. Initiating gold production — alongside the exploration of additional prospects at the project, including uranium — is expected to significantly enhance the company’s growth prospects. West Wits’ confidence in the project is underpinned by the project’s technical and geological strengths.
The institution’s due diligence is part of securing a proposed ZAR300 million (approx. US$15.8 million) debt facility to underpin financing the development of Qala Shallows. The successful completion of this process will represent a significant milestone in achieving the company’s financing goals and support initiatives with other potential funders.
The Qala Shallows project, supported by a comprehensive definitive feasibility study (DFS), is the first stage of the company’s plans to exploit the Witwatersrand Basin Project’s extensive 4.28-million-ounce gold mineral resource estimate (MRE).
Qala Shallows is forecast to produce nearly one million ounces of gold over its 17-year lifespan, maintaining an annual steady-state output of more than 70,000 ounces at an operational cost below $900 per ounce.
Mining Indaba Conference
Other notable news during the quarter was several members of the West Wits board and senior management participating in the Mining Indaba Conference held in Cape Town, South Africa.
Their participation was important in strengthening investor and stakeholder connections to advance the Qala Shallows project. The West Wits team also took this opportunity to conduct a number of site visits to Qala Shallows in Johannesburg, with potential funders and stakeholders to demonstrate the project’s operational readiness.
Successful government engagement
Paving the way for the imminent formal approval of a new Prospecting Right (PR), in April the Minister of Forestry, Fisheries and the Environment dismissed an appeal against the company's PR application.
The PR is adjacent to the company's existing mining right within the Witwatersrand Basin Project.
Once formally granted, West Wits expects the new PR to materially increase the 4.28-million-ounce resource. This new PR is also expected to significantly extend the operational lifespan of the Kimberly Reef mining activities at Qala Shallows and will enhance the potential scale.