West Wits Mining Ltd (ASX:WWI)'s revised definitive feasibility study (DFS) for the Phase 1 Qala Shallows operation at Witwatersrand Basin Project (WBP) in South Africa demonstrates “robust” financials and an opportunity to grow beyond the initial phase, the company says.
The revised DFS confirms earlier increased production build-up and improved financial results.
Improved project financials
Some key highlights of the revised DFS include:
- US$52 per ounce reduction in all-in-sustaining-cost (AISC): estimated US$1,093 per ounce gold with a steady-state AISC of US$962 per ounce, decreasing from US$1,145 per ounce and US$1,028 per ounce.
- Solid production: peak steady-state production at 55,000 ounces per annum for 10 years.
- Project financials: US$29 million (19%) increase in pre-tax net-present value (NPV7.5) to US$180 million (A$260 million).
- 12,000-ounce increase to declared ore reserve: 3.2 million tonnes at 2.81 g/t for 290,000 ounces gold.
- Re-commencement of mining operation: rapid production ramp-up planned for the fourth quarter of 2022 as part of a formal mine plan under the revised DFS.
Considerable de-risking
Managing director Jac van Heerden said: “We took the opportunity to revisit the 2021 DFS. This comes at a time when we have established our underground access, which has de-risked the project considerably.
“The revised DFS shows that even with recent inflation and increased costs, especially diesel, the optimisation of the mine plan still yielded positive results and confirms our view of having a long-term robust project.
“The revised DFS has set the scene for exciting developments on our Project 200, which has the stated objective to further increase production at WBP to 200,000 ounces of gold per annum.”