Cornerstone Witwatersrand
Basin Project (WBP)
Witwatersrand Basin Project, South Africa
West Wits holds a mining right for the WBP located approximately 15 kilometres to the west of the Johannesburg CBD in the Gauteng Province of South Africa. The WBP is made up of three reef mining targets which will be developed sequentially: Kimberley Reef, Main Reef, and Bird Reef.
The WBP is set to transform West Wits into a long-term gold producer, with average steady-state annual ROM production of 65,000oz over 25 years, over a 27-year LOM for 1.6 Moz of gold.
Significant global Mineral Resources of 7.24 Moz gold resource @ 4.00 g/t Au
55% classified as Measured & Indicated
3 distinct Reef horizons: Kimberley Reef; Bird Reef; Main Reef
Trade-off studies completed for Project 200 indicated the potential to ramp-up production to 200,000oz pa with additional infrastructure and underground shafts, process facility and tails deposition facility.
Flagship Qala Shallows Project
Life-of-Mine:
– Revenue: US$2.7 billion @ US$2,850/oz Gold Price
– Ore Reserve: 4.6Mt @ 2.60g/t for 383.900 oz Au
– Gold Production: ~944,000 ounces over 16.8-year Life-of-Mine
– Steady-State production: ~70,000oz pa for 12 years
The DFS and any production target under the DFS contain inferred mineral resources. The directors confirm that it is reasonable to include these inferred mineral resources in the well-understood and researched structure of the Witwatersrand Basin and the views provided to WWI by independent geological expert consultants, given the project’s location and geology.
Financial Position – Results based on US$2,850/oz Gold Price:
– Steady-State All-In-Sustaining-Cost: US$1,181/oz
– Free Cashflow: US$983M
– Pre-tax NPV7.5:US$719M
– Post-tax NPV7.5:US$500M
– Peak Funding: US$44M (8-month payback period from end of peak funding & 3.3 years from commencement of development)
– Fully Funded: to sustainable gold production
Uranium Exploration
West Wits’ uranium exploration is centred on the Bird Reef Package within its Mining Right area, with potential for a standalone uranium and gold project. The project is well-positioned to benefit from the resurgence in uranium prices and a growing emphasis on uranium’s role in the decarbonised energy mix.
| URANIUM EXPLORATION TARGET | ||
| Range | Low | High |
| Tonnes (M) | 10 | 22 |
| Grade (ppm) U3O8 | 300 | 550 |
| Content (Mlb) U3O8 | 12 | 16 |
In October 2022, West Wits announced the results of the first phase of the Company’s Uranium Drilling Program with the objective to confirm historical information on the Uranium Exploration Target.
The three diamond-hole assay results are:
1.59m @ 835ppm U and 1.46g/t Au from 85.11m (PH1B – Middle Reef), including
0.96m @ 1,321ppm U and 2.30g/t Au from 85.74m
1.20m @ 108ppm U and 5.45g/t Au from 104.61m (PH1B – White Reef), including
0.49m @ 226ppm U and 12.15g/t Au from 105.32m
1.26m @ 221ppm U and 0.38g/t Au from 77m (PH1C – Middle Reef), including
0.5m @ 456pm U and 0.80g/t Au from 77.76m
The development of Qala Shallows is currently a priority, but the Company continues to explore opportunities to further advance this promising project within the existing Mining Right area.