West Wits Mining Ltd (ASX:WWI) has submitted two mining permit applications to enable a substantial increase in gold production from its Witwatersrand Basin Project (WBP) in South Africa.
The permit applications each cover five-hectare open pit operations with high-grade targets.
The company expects that withstanding delays, this will facilitate a material increase in ore production within the next 4 to 6 months.
WBP remains cash flow positive
West Wits’ chairman Michael Quinert said: “WWI’s strategic transformation is now well underway and, providing the South African regulator approves both WBP mining permits in a timely manner, the board expects a material increase in production and net cash flow towards year end.
“However, the board’s core goal remains securing mining rights over the entire WBP tenement in the first half of 2019 and ramping up production.
“The WBP remains cash flow positive and on a self-sustaining foothold.”
Securing full mining rights is on track
The main focus remains on achieving acceptance of lodgement for the mining rights application over the entire tenement area by the April 2018 deadline, which is on track.
Securing full mining rights is critical for achieving full production by 2021-22, as several open pit and underground operations can be run concurrently.
As the regulatory approval process could take up to 12-months, this provides the geology team ample time to focus on further proving up the resource to be JORC-compliant.
READ: West Wits Mining chairman increases shareholding ahead of Tambina gold exploration
West Wits targets conglomerate-hosted gold and is focused on two premier regions, the Witwatersrand Basin of South Africa and Pilbara region of Western Australia.
The WBP is within a world-leading goldfield and hosts a 3.26 million ounce deposit from which it is producing gold.
During December, the company produced 1,020 ounces at a cash cost of around US$800 per ounce from the Kimberley open pit.