Wia Gold’s Kokoseb Project Scoping Study Confirms Robust Economics and 11+ Year Mine Life
Wia Gold Limited has completed a Scoping Study for its Kokoseb Gold Project in Namibia, confirming its potential as a long-life, economically viable open pit mine with strong financial metrics and a clear path to development.
- 11+ year mine life with average production of 146 koz gold annually
- Post-tax NPV(5%) of US$646 million and IRR of 38% at US$2,600/oz gold price
- Initial capital cost estimated at US$358.8 million with rapid payback under two years
- Mining licence application due October 2025; ESIA submission planned for Q1 2026
- Ongoing Definitive Feasibility Study and exploration drilling to extend resources
Scoping Study Validates Kokoseb’s Potential
Wia Gold Limited (ASX – WIA) has announced the completion of a comprehensive Scoping Study for its Kokoseb Gold Project in Namibia, confirming the project’s technical and economic viability. The study outlines a robust open pit operation with an 11-plus year life of mine, producing an average of 146,000 ounces of gold annually at an all-in sustaining cost (AISC) of US$1,447 per ounce.
Located in Namibia’s Erongo Region, Kokoseb benefits from established infrastructure, including power and road access, and is positioned to become the country’s fourth modern gold mine. The project is majority-owned by Wia Gold (80%) with the Namibian state-owned Epangelo Mining Company holding the remaining 20%.
Financial Strength and Rapid Payback
The study’s financial analysis, based on a conservative gold price of US$2,600 per ounce, delivers a post-tax net present value (NPV) of US$646 million and an internal rate of return (IRR) of 38%. At this price, the project’s capital expenditure is estimated at US$358.8 million, with a rapid payback period of just 1.8 years. Should gold prices align with recent spot levels near US$3,450 per ounce, the NPV nearly doubles to US$1.27 billion and the IRR jumps to 60%, shortening payback to 1.25 years.
The production target is underpinned by a Mineral Resource Estimate of 2.93 million ounces of gold, with 82% classified as Indicated Resources, providing a solid foundation for mine planning. The operation will employ conventional open pit mining methods with a processing plant designed for 5.25 million tonnes per annum throughput and over 90% gold recovery.
Permitting and Environmental Progress
Wia Gold is advancing key regulatory milestones, with the Mining Licence application scheduled for submission in October 2025 and the Environmental and Social Impact Assessment (ESIA) expected to be lodged in the first quarter of 2026. The project’s environmental strategy includes a filtered tailings storage facility to reduce water demand and multiple identified water sources to ensure sustainable supply.
Environmental Compliance Consultancy Pty Ltd is managing the ESIA process, which follows Namibia’s rigorous Environmental Management Act framework. The project also engages with local traditional authorities to secure lawful access to communal lands, reflecting a strong commitment to social responsibility.
Future Work and Funding Outlook
With the Scoping Study complete, Wia Gold is progressing a Definitive Feasibility Study (DFS) targeted for completion in the second half of 2026. Concurrently, exploration drilling continues to expand and better define the resource base, including potential underground mineralisation that could extend mine life and enhance project economics.
Funding for the project is expected to come from a mix of debt and equity, although formal financing discussions have yet to commence. The company’s strong market capitalisation and Namibia’s stable mining jurisdiction provide a solid platform for securing capital. However, investors should note that funding terms and availability remain uncertain at this stage.
Balancing Risks and Opportunities
While the study confirms Kokoseb’s promise, risks remain. These include the inherent uncertainties in resource estimation, particularly related to Inferred Resources, and the need to confirm sustainable water supply. Capital and operating costs carry a ±25% accuracy range at this stage, typical for a Scoping Study.
Opportunities exist to improve project value through ongoing metallurgical testwork, which may enhance gold recovery and reduce costs, and through exploration success that could increase resources and extend mine life. The potential to optimize water sourcing and tailings management could also reduce capital and operating expenses.
Bottom Line?
As Wia Gold advances Kokoseb through feasibility and permitting, investors will watch closely for funding clarity and resource growth that could unlock further value.
Questions in the middle?
- How will Wia Gold secure the estimated US$414 million funding required for Kokoseb’s development?
- What impact will ongoing exploration and potential underground resources have on the project’s mine life and economics?
- How will the final Environmental and Social Impact Assessment influence permitting timelines and community relations?