West Wits Mining (ASX:WWI) has achieved financial close and received its first drawdown of R339 million from a R875 million ($77.31 million) senior loan facility with Absa Bank and Nedbank CIB.
The South African facility fully funds the Qala Shallows Gold Project through to steady-state production of 70,000 ounces of gold per annum. The project has a Definitive Feasibility Study net present value of US$500 million ($725.15 million) and an 81% internal rate of return at US$2,850 per ounce.
The milestone represents the culmination of a disciplined 12-month funding optimisation process and materially de-risks the project development. The facility provides a complete funding platform for the operation, which targets a 12-year mine life.
Drawdown enables acceleration of surface and underground development, with ongoing ore deliveries to Sibanye-Stillwater’s Ezulwini processing plant under the toll treatment arrangement. The company targets ramping up delivery volumes toward steady-state production levels.
Surface infrastructure development continues under the engineering, procurement, and construction management program. Near-term deliverables include the pollution control dam and haulage road in the September quarter, with potable water supply connection to mains water scheduled for the December quarter.
Plant and equipment expansion includes delivery of an additional 30T underground dump truck, underground roof bolter, and two permanent diesel generators. The generators will provide backup power supply when Qala Shallows connects to grid power in the December quarter.
Underground operations focus on vamping and slyping at the recently opened two-level, creating new ore access areas. The company continues advancement of the main decline development, unlocking additional mining areas and increasing ore delivery rates.
The Qala Shallows Project sits within the Witwatersrand Basin Project, which hosts a 7.24 million ounce gold (Au) resource at 4 grams per tonne. The Witwatersrand Basin has produced over 1.5 billion ounces of Au, representing about 22% of all Au accounted for above surface.
West Wits Mining is an explorer, developer, and producer of precious and base metals. The company is focused primarily on the Witwatersrand Basin located in the Central Rand Goldfields of South Africa.
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Images: West Wits Mining
