West Wits Mining (ASX:WWI) has released an updated Definitive Feasibility Study (DFS) for its Qala Shallows project, located within the Witwatersrand Basin Project in Johannesburg, South Africa. The study indicates a 2.2% increase in gold production, projecting a total of 944,000 ounces over a 16.8-year mine life. West Wits Mining is a precious and base metals producer with assets in both South Africa and Australia.
The Qala Shallows project has seen a 58% increase in its revenue value, now estimated at US$2.7 billion (A$4.12 billion). The all-in-sustaining-cost for gold production at the site is marked at US$1,289 per ounce. According to the DFS, the project is expected to reach peak funding and return US$44 million within 2.6 years of production, followed by an eight-month payback period.
The increased revenue is linked to a 14.3% rise in the cost to produce gold, attributed to growing demand. Additionally, the DFS has bolstered Qala Shallows’ ore reserves to 4.6 million tonnes at 2.6 grams per tonne, containing 383,900 ounces of gold, marking a 9.3% increase. Managing Director Rudi Deysel says the updated study reinforces the project’s value and economic fundamentals.
Deysel highlighted that the peak funding requirement and payback period have been reduced, while free cash flow has surged by US$461 million, an 88% uplift, bringing the total projected free cash flow to US$983 million. The study was expedited with the involvement of privately held Bara Consulting. As of July 23, ABC Bullion reports the spot price of gold at US$3,427.11 per ounce.
