West Wits achieves milestones at Qala Shallows

This unlocked access to historically pre-developed stoping areas on 2 Level and higher-grade production zones, requiring only minor modifications to accommodate modern trackless mining vehicles and accelerate production.

“The 1 West Decline breakthrough is the moment we have been building toward – it transitions Qala Shallows from early on-reef development ore into pre-existing higher-grade stopes and provides access to a significant inventory that requires reduced preparation work,” Deysel highlights.

Other Qala Shallows operation milestones include 544 m of underground development to June 30, including 375 m on-reef development and 168 m waste development.

Deliveries of on-reef development ore to Sibanye-Stillwater’s Ezulwini plant during the quarter delivered 4.6 kg (148 oz) of gold with year-to-date production of 7.05 kg (227 oz).

Surface infrastructure is also on track, with 45% of all works now complete.

There is also new critical underground equipment.

The scoping study has been expanded to assess multiple development and processing pathways across the broader Witwatersrand Basin project, including construction of a standalone processing plant, third-party processing partnerships and integration of additional ore sources. Results are expected to be received from the consultant by month-end.

At the Bird Reef Central (BRC) uranium/gold project, the drawdown of senior loan facility enables allocation surplus capital towards growth projects with the company finalising plans for implementing the exploration programme targeting a declared uranium Joint Ore Reserves Committee (Jorc) mineral resource estimate.

Cash as at June 30 was about A$32-million.

The full project finance package was executed, comprising an R875-million senior loan facility, a R150-million working capital facility and R90-million cost overrun debt facility with South African corporate and investment banks Absa Bank and Nedbank.

The Nebari loan facility of $12.5-million was repaid in full, concluding the September 2025 bridge funding initiative to advance Qala Shallows development until first drawdown of the senior loan facility.

The company executed a sale agreement to divest the Mt Cecelia project, in Australia, to Aventine Resources under a value-accretive structure comprising $2-million in Aventine equity, a 1% net smelter royalty and $1-million in milestone consideration on definition of a 500 000 oz gold Jorc resource.

Capital consolidation was completed on a ten-for-one basis, reducing shares on issue to 434.65-million ordinary shares and improving the capital structure ahead of the institutional finance close.

“With the full project Absa/Nedbank finance package now executed and Nebari repaid, our funding structure is complete. The proposed divestment of Mt Cecelia to a West Australia-focused explorer rationalises West Wits asset portfolio whilst retaining exposure to Mt Cecelia’s upside at zero ongoing cost,” Deysel explains.

“The operational priority for the next quarter is clear: advance development rates, ramp up production and execute the scoping study to define the pathway to 200 000 oz/y. Finalising the project finance also enables the company to finalise exploration plans for the standalone BRC uranium/gold project, which is viewed as an organic strategic growth project,” he adds.