Funding and Resource Risks Loom as Wia Gold Advances Kokoseb Development
Wia Gold Limited’s latest scoping study for the Kokoseb Gold Project in Namibia confirms a low-cost, long-life open pit operation with compelling economics and significant upside potential.
- 11+ year mine life with 2.93 million ounces gold resource
- Pre-production capital cost of US$359 million and low all-in sustaining costs
- Post-tax NPV of US$646 million and IRR of 38% at US$2,600/oz gold price
- Rapid payback period under two years and strong production profile
- Ongoing drilling to expand resources and target underground mining
A Promising Step for Kokoseb
Wia Gold Limited has released the results of its Kokoseb Gold Project scoping study, painting a compelling picture of a financially robust and technically viable gold mining operation in Namibia. The study outlines an 11-plus year mine life with an average annual production of approximately 146,000 ounces of gold, underpinned by a mineral resource estimate of 2.93 million ounces at a grade of 1.0 grams per tonne.
The project’s economics stand out with a post-tax net present value (NPV) of US$646 million and an internal rate of return (IRR) of 38% based on a conservative gold price of US$2,600 per ounce. At a higher gold price scenario of US$3,450 per ounce, the NPV nearly doubles to US$1.27 billion with an IRR soaring to 60%, highlighting strong leverage to gold price movements.
Operational and Financial Highlights
The scoping study envisages a straightforward open pit mining operation with a low strip ratio of 6 – 1 and a conventional carbon-in-leach processing plant capable of treating 5.25 million tonnes per annum. The project benefits from simple metallurgy delivering over 90% gold recovery, contributing to low all-in sustaining costs averaging US$1,447 per ounce over the life of mine.
Capital expenditure is estimated at US$359 million pre-production, with a rapid payback period of just 1.8 years at the base gold price. The project’s infrastructure advantages include proximity to the Namibian power grid, a new surfaced access road, and access to water sources, all of which support a cost-effective development pathway.
Growth and Exploration Upside
Wia Gold is actively advancing exploration with seven rigs currently drilling to expand the resource base and test deeper, higher-grade zones that could support underground mining. An underground mineral resource estimate is anticipated by mid-2026, potentially extending the project’s life and improving economics further.
The company plans to submit its mining license application in October 2025, with environmental and social impact assessments nearing completion. A definitive feasibility study is targeted for the second half of 2026, marking critical milestones on the path to production.
Experienced Team and Stable Jurisdiction
Wia Gold’s leadership brings extensive experience in African gold exploration and development, including successful projects in Namibia and West Africa. The Kokoseb project benefits from Namibia’s stable political environment, supportive mining policies, and excellent infrastructure, positioning it well within a premier mining jurisdiction in Sub-Saharan Africa.
While the scoping study provides a strong foundation, it remains a preliminary assessment with ±25% accuracy on costs and requires further work to confirm ore reserves and secure financing. The company acknowledges the need for approximately US$414 million in funding, with no certainty on timing or terms, underscoring typical risks in advancing mining projects.
Bottom Line?
As Wia Gold advances toward feasibility and licensing, Kokoseb’s promising economics and growth potential position it as a key project to watch in Namibia’s gold sector.
Questions in the middle?
- Will Wia Gold secure the necessary US$414 million funding on favourable terms?
- How will upcoming underground resource estimates impact the project’s economics?
- What timeline can investors expect for mining license approval and definitive feasibility study completion?
