Joburg’s gold revival outlook strengthened still further as resource estimate surges
The latest compliant mineral resource estimate of the Witwatersrand Basin project of Sydney-listed West Wits Mining is up 2.2-million ounces, which strengthens the gold revival of Johannesburg, South Africa’s historic Golden City, still further.
The project is situated about 15 km west of Joburg’s central business district, in Gauteng province.
The estimate is now a 44%-higher 7.24-million ounces at a grade of 4 g/t of gold, West Wits, chaired by Michael Quinert, stated in a release to Mining Weekly on Monday, February 2.
The updated estimate follows the granting of new prospecting right (PR) 10839, which is described as providing “a seamless depth extension to the company’s existing mining footprint, together with a revision to cut-off grade reflecting the materially higher gold price environment”.
This timely resource uplift further enhances the scale, quality and longevity of the Witwatersrand Basin project, reinforcing its position as one of the largest undeveloped, high-grade gold systems under development in South Africa
Now classified as measured and indicated is a 55%-higher four-million ounces of gold that presents mine planning optionality.
Providing natural depth extension to the Qala Shallows gold mine is the addition by PR 10839 of 1.2-million ounces at 4.38 g/t of gold.
At a gold price of $2 850/oz, the lower cut-off grade being applied unlocks an additional one-million ounces of gold, highlighting the robust nature of the project and upside to the higher gold price environment.
The first gold pour from Qala Shallows in on track for next month.
An institutional share placement funds Qala Shallows development to 70 000 oz of steady-state production a year.
At its official opening last year, Qala Shallows was hailed by Minerals Council South Africa CEO Mzila Mthenjane as a new milestone for South Africa’s mining industry, the South African economy, and the communities that will share in the opportunities created there.
West Wits CEO Rudi Dysel highlighted the latest 2.2-million-ounce increase as confirmation of the scale, continuity and high-grade nature of the Witwatersrand Basin project and an advance that strengthens the company’s long-term investment case.
“The grant of PR 10839 provides a seamless depth extension to Qala Shallows, exactly where we want future tonnes and ounces to come from. Importantly, more than half of the global mineral resource is in the measured and indicated categories, which underpins confidence in our development strategy and future growth of ore reserves.
“Coupled with our recently completed institutional capital raise, West Wits is in a strong position to advance Qala Shallows to steady-state production while simultaneously progressing studies aimed at expanding production and mine life of this top-tier orebody.”
Key contributors to development have included Bara Consulting, the independent mining engineers who undertook the definitive feasibility study review and update; Modi Mining, the black economically empowered mining contractor; South Africa’s public sector-owned Industrial Development Corporation and the private sector-owned Absa Bank as lenders for the syndicated loan facility; and precious metals mining company Sibanye-Stillwater, which is providing the Ezulwini process plant, which is located near Westonaria, also on the West Rand, as part of a toll treatment agreement for the processing of the gold ore mined by West Wits Mining.
