West Wits slam dunks its improved DFS for Qala Shallows with a 38% gold increase
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An updated definitive feasibility study is showing a huge increase in metrics across the board for West Wits Mining’s Qala Shallows deposit.
On the back of a major $26.96m financial endorsement from the Industrial Development Corporation of South Africa (IDC), West Wits Mining (ASX:WWI) has wrapped up the updated definitive feasibility study (DFS) for its Qala Shallows deposit and increased the recovered gold tally by a massive 38%.
Check out these improved numbers:
Production rate increases, a life of mine increase and 236,000 extra ounces of gold, among other improved metrics – not a bad day at the office for the Africa-focused miner.
The IDC funding will provide the foundation for funding the entire development plan outlined in the DFS.
That signals “go time” for mine development, and West Wits is now on the hunt for the perfect funding package on top of the IDC funds to get the best value for the company, and importantly investors.
“Qala Shallows’ updated DFS has delivered a strong result and sets the scene for us to deliver a substantially larger gold project,” West Wits chair Michael Quinert said.
“The project’s potential is evident in the updated financial metrics. With an impressive increase of US$254 million (95%) in free cashflow, the project is set to generate US$522m.
“These figures emphasise the project’s value and its potential to deliver substantial returns to our shareholders.
“There is good reason to be excited about the future prospects of the Witwatersrand Basin project.”
The company aims to establish a robust 30,000-tonne ore stockpile, facilitating a steady delivery of 15 kilo-tonnes per month to Sibanye-Stillwater’s nearby plant.
Qala Shallows is expected to generate revenues from gold production within six to eight months from the commencement of production.
This article was developed in collaboration with West Wits Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.