West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) is advancing the definitive feasibility study (DFS) update for its Qala Shallows project within the broader Witwatersrand Basin project (WBP) in South Africa, with the updated DFS results expected to be available in July 2023 and provide a material improvement in the WBP’s production and economic outcomes.
The DFS of the Qala Shallows is being updated by Bara Consulting to include new information gained from underground survey works, optimisations of the mine plan and updated market assumptions.
“The quality of the asset continues to improve”
WWI chairman Michael Quinert said: “The company continues to progress initiatives to optimise and grow the WBP whilst advancing discussions with potential funders.
“The underground survey work, optimisation of the mine plan and anticipated granting of the Prospecting Right application are expected to have a material impact on the WBP’s resource and production metrics.
“Coupled with the favourable movements in gold price and exchange rate, the quality of the asset continues to improve.”
Qala Shallows – DFS update
Through accessing underground via the refurbished decline shaft at Qala Shallows WWI’s technical team has been able to undertake detailed measurements of the ore body characteristics, including reef dip and widths.
This information enhanced the data set for the area to be mined over the early years of the project and enabled further refinement and optimisation of the mine plan.
In assessing this new information, the team identified potential opportunities for improving economic outcomes at Qala Shallows.
As such, WWI decided to commission its independent mining engineers, Bara Consulting, to undertake a further review and update of the DFS released in August 2022.
The Bara review will consider the improved data set and update the model for changes to the input assumptions, especially to allow for changes to the gold price and exchange rates since the original study was released.
Work on this review is progressing and WWI expects the updated DFS will be completed within the next month.
Given the detailed data set information now available and favourable movements in the key economic factors underpinning the models, WWI is anticipating a material improvement in the revised DFS outcomes.
WBP - Prospecting Right application status
South Africa’s DMRE granted approval of WWI’s EA in May 2023 for the Prospecting Right application and the company has completed the 30-day community consultation period with interested and affected parties.
This application covers an area to the south and west of the Qala Shallows area which is the subject of the DFS.
Lawyers for Human Rights (LHR) have now lodged an appeal application.
This application puts forward arguments that have been previously raised and rejected by both the DMRE and the Minister in relation to other license applications for the WBP.
WWI believes this review application is simply an attempt to cause disruption and is without legal merit.
The company is confident this appeal, like others before it lodged by LHR, will also be dismissed.
Granting of the Prospecting Right will reintroduce areas reported under the WBP’s previous Prospecting Right which were removed upon granting of the Mining Right which has a reduced tenement footprint.
The mineral resource estimate currently stands at 4.28 million ounces at 4.58g/t gold and is expected to have a material increase upon granting of the Prospecting Right.
Funding update
WWI continues to progress constructive discussions with several prospective funders to secure the optimum funding solution for the WBP and remains confident it will be able to secure commitments to finance the restart of operations in the near term.