Qala Shallows DFS Projects US$500M NPV and 70,000oz Annual Gold Production
West Wits Mining Limited has presented a robust update on its flagship Qala Shallows gold project, showcasing a strong Definitive Feasibility Study and secured senior debt funding, targeting first gold production in early 2026.
- Qala Shallows DFS confirms 17-year mine life with 70,000oz annual steady-state production
- Post-tax NPV of US$500 million and IRR of 81% at US$2,850/oz gold price
- Secured senior debt syndicated loan facility of approximately USD 50 million
- Over 5 million ounces gold resource with 65% measured and indicated categories
- First gold pour targeted for Q1 2026 with production ramp-up through 2027
Robust Feasibility and Funding Milestones
West Wits Mining Limited (ASX – WWI) has delivered a comprehensive update on its Qala Shallows gold project, located in South Africa’s prolific Witwatersrand Basin. The company’s recent presentation at the Munich Mining Conference highlighted the completion of a Definitive Feasibility Study (DFS) that underpins a 17-year mine life with a steady-state production target of 70,000 ounces of gold per annum. The DFS projects an impressive post-tax net present value (NPV) of US$500 million and an internal rate of return (IRR) of 81%, assuming a gold price of US$2,850 per ounce.
Crucially, West Wits has secured project funding to advance development, including a senior debt syndicated loan facility of approximately ZAR 875 million (around USD 50 million) with leading South African financial institutions. This funding complements the company’s existing cash reserves and a loan facility, positioning Qala Shallows for imminent production commencement.
Resource Base and Production Outlook
The project boasts a substantial mineral resource estimate exceeding 5 million ounces of gold at an average grade of 4.66 grams per tonne, with 65% classified as measured and indicated resources, reflecting a high confidence level. The declared ore reserves stand at approximately 384,000 ounces, supporting the initial production phase. Mining operations will employ conventional, mechanised underground methods, with ore transported to a nearby processing plant under a cost-effective toll treatment agreement with Sibanye-Stillwater’s Ezulwini Mining Company.
West Wits targets first gold pour in the first quarter of 2026, following the build-up of a 30,000-tonne ore stockpile to facilitate steady deliveries. Production is expected to ramp up through 2026 and 2027, reaching steady-state output by 2028, with an all-in sustaining cost (AISC) forecast at US$1,181 per ounce, placing the operation in the lowest cost quartile globally.
Experienced Leadership and ESG Commitment
The company’s progress is supported by an experienced management team with deep expertise in mining operations across Africa and internationally. CEO Rudi Deysel and his team bring a blend of technical and commercial skills critical to navigating the complexities of mining development in South Africa.
West Wits also emphasises its commitment to environmental stewardship and social responsibility. The underground mining approach minimises surface disturbance, with efficient water use and zero effluent discharge. The company engages closely with local communities through economic development programs and prioritises local procurement and workforce development, aligning with best practices in governance and sustainability.
Looking Ahead
With the Qala Shallows project now fully financed and mobilised, West Wits is poised to transition from explorer to mid-tier gold producer. The company’s strategic execution in the coming months will be critical to meeting its production targets and realising the value embedded in its substantial resource base.
Bottom Line?
West Wits’ secured funding and strong DFS set the stage for a pivotal production phase, but execution risks and gold price volatility remain key watchpoints.
Questions in the middle?
- How will West Wits manage operational risks during the mine ramp-up phase?
- What impact could fluctuations in gold prices have on project economics and funding requirements?
- How effectively will the company convert inferred resources into reserves to sustain long-term production?
