West Wits Mining Ltd (ASX:WWI) has outlined its early mining initiative for the Qala Shallows area, a key region within its cornerstone Witswatersrand Basin Project in South Africa.
The initiative will see production commence in February 2022, with plans to produce between 5,000 and 8,500 tonnes of ore per month.
This production metric is in addition to the targets outlined in West Wits’ definitive feasibility study (DFS), which was released in September 2021.
As part of the plan, local mining contractor Modi Mining and gold recovery services company Goldplat PLC (AIM:GDP) have signed on as WWI’s project development partners.
Establishing a small mining footprint
Commenting on the initiative, West Wits managing director Jac van Heerden said: “The purpose of the early mining initiative is to establish a small mining footprint at the previously existing developed stopes of Qala Shallows, aiming to produce first ore in February next year.
“We are very happy to be announcing that Modi Mining and Goldplat will join us as our project development partners, with regards to the mining and processing, respectively.”
Early mining initiative
West Wits’ initiative seeks to exploit the remnant ore left in situ after work seized on the previous mine.
Importantly, it’s separate to the formal WBP production profile, released in August 2021.
Early works are being implemented over a six-month period from October 2021 to March 2022, with initial production aimed at delivering as much as 8,500 tonnes of ore per month from February 2022.
After that, production is expected to ramp up to between 8,500 and 10,000 tonnes per month from July 2022.
The ore under this initiative is also in addition to the production scope outlined in the Qala Shallows DFS.
Under the study, the formal mining plan is poised to ramp up to 30,000 tonnes per month within 30 months from commencement.
Beyond that, it’s expected to reach 50,000 to 55,000 ounces per annum at steady-state production within four years.
Ultimately, the Witwatersrand Basin Project is forecast to yield 1.56 million ounces of gold over a 22-year mine life, with annual output over 18 years of this period averaging between 80,000 and 90,000 ounces.
Key appointments
After completing the Qala Shallows DFS, West Wits set out to find a local contractor to support the gold play’s move into production.
Since then, private company Modi Mining has been identified as WWI’s preferred partner and has been awarded the key mining contract.
Modi brings extensive experience in project development and continuous operations to the table. In the past, it has worked with a series of prominent producers to execute similar operations.
As well as the contractor appointment, WWI has inked a deal with Goldplat to secure toil treating services. The Alternative Investment Market (AIM) lister is a gold recovery services company with two processing operations in South Africa and Ghana.
Goldplat will provide West Wits with a dedicated circuit to process tonnage from the early mining initiative. It will also deliver the dore bars to Rand Refineries to refine and sell the precious metal.
Early mining phases
The initiative is a multi-stage operation that will see four important work phases conclude before production commences in February.
As part of phase one, bush clearing and preparation kicked off in September.
Last month, the mineral resource management team also started underground inspection activities as part of phase two.
Under phase three, site layout and surface infrastructure will be explored between October and January 2022.
Simultaneously, box cut rehabilitation, adit brow support and decline widening will take place under phase four.
