West Wits Mining has commenced underground production at its Qala Shallows gold project, located in South Africa’s renowned Witwatersrand Basin. The company successfully transitioned from development to full-scale mining, marking a significant milestone with the first ore now stockpiled and ready for processing. The initial gold pour is anticipated in early 2026, setting the stage for potential revenue generation.
The company reported that the ore was delivered to the surface from the decline portal following the completion of essential infrastructure, including a concrete haul road and drainage systems. In a statement, Rudi Deysel, the chief executive officer of West Wits Mining, expressed confidence in their operational capabilities: “We’ve crossed the threshold into production, demonstrating the strength of our execution.”
Operational Ramp-Up and Production Goals
Key safety measures, including underground lighting and communication systems, have been implemented. The introduction of a new double boom underground drill rig signifies a shift from manual to mechanized production methods. As part of this operational ramp-up, the company has secured crucial technical staff and night-shift operators to expedite the production process.
West Wits Mining aims to establish a 30,000-tonne ore stockpile by March 2024, which will facilitate the commencement of processing at Sibanye-Stillwater’s Ezulwini plant under an exclusive toll-treatment agreement. The first revenues are expected shortly after the initial gold pour.
The Witwatersrand Basin, where Qala Shallows is located, has a storied history, producing over 1.5 billion ounces (approximately 62,000 tonnes) of gold since the early 1900s. This area remains the richest goldfield globally, accounting for more than 40 percent of all gold extracted from the Earth.
Future Projections and Financial Outlook
Between 2021 and 2023, West Wits Mining outlined a substantial gold resource of 5.025 million ounces across its project area, with Qala Shallows highlighted as a focal point. This site alone holds 10.7 million tonnes of resource at a grade of 2.98 grams per tonne, equating to just over one million ounces, including 383,000 ounces classified as reserves.
As mining operations commence, the company expects to increase production from 15,000 to 20,000 tonnes of ore per month early next year, reaching a target of 65,000 tonnes per month by the third year of operation.
In July 2023, West Wits Mining released a definitive feasibility study revealing a net present value of US$500 million (approximately A$755 million) and an internal rate of return of 81 percent. The mine is projected to produce 70,000 ounces of gold annually for 12 years, with anticipated post-tax free cash flows of US$983 million (around A$1.5 billion) at a conservative gold price of US$2,850 (approximately A$4,300) per ounce. The all-in sustaining costs are estimated at just US$1,289 (about A$1,950) per ounce, positioning Qala Shallows among the lowest-cost gold producers in the industry.
With a strengthened financial position supported by $17.7 million from a September equity raise and access to a US$12.5 million loan facility, West Wits Mining is well-equipped to navigate the production ramp-up without additional market reliance.
As the company embarks on this new chapter in a district renowned for its mining legacy, the future prospects for West Wits Mining look promising. With ore being extracted and first gold on the horizon, the transition from explorer to producer is progressing rapidly, solidifying its place in the rich history of the Witwatersrand Basin.
