Wia Gold’s Kokoseb Gold Project in Namibia jumps to 3.78 million ounces in updated resource estimate, unveiling a maiden underground inferred resource and reinforcing its development potential.
- 29% increase in total mineral resource to 3.78 Moz
- Open pit resource up 10% to 3.23 Moz with 2.01 Moz indicated
- Maiden underground inferred resource of 0.56 Moz at 2.2 g/t Au
- Definitive Feasibility Study confirms robust economics and 14-year mine life
- US$475m capital cost with project financing terms agreed with Sprott
Significant Resource Upgrade and Maiden Underground Component
Wia Gold Limited (ASX:WIA) has delivered a substantial 29% uplift in its Kokoseb Gold Project Mineral Resource Estimate (MRE), now standing at 3.78 million ounces of gold. This includes a 10% increase in the open pit resource to 3.23 Moz, with a notable 2.01 Moz classified in the higher-confidence Indicated category, underpinning the project's robust development credentials. For the first time, the updated estimate also introduces a maiden underground inferred resource of 0.56 Moz at a grade of 2.2 g/t Au, adding a higher-grade dimension to Kokoseb’s profile and highlighting longer-term growth potential.
The Kokoseb deposit remains open at depth along its more than 5 km strike, with ongoing drilling targeting extensions of the underground mineralisation. Six diamond rigs are actively testing continuity and depth extensions, aiming to convert the conceptual Exploration Target of 10–15 Mt at 2–2.5 g/t Au into a formal resource. This exploration momentum follows a series of strong drilling results that have progressively enhanced confidence in the deposit’s scale and grade continuity.
Definitive Feasibility Study Confirms Project Viability
The resource update accompanies the release of a Definitive Feasibility Study (DFS) that confirms Kokoseb’s technical and economic robustness. The DFS defines a maiden Probable Ore Reserve of 69.8 million tonnes at 0.87 g/t Au, containing 1.95 Moz of gold, based solely on the Indicated portion of the resource. The mine plan envisages a 14-year open pit operation with average annual production of approximately 150,000 ounces over the first 10 years, delivering a total of 1.84 Moz of recovered gold.
Financial metrics are compelling, with a post-tax net present value (NPV5%) of US$1.2 billion at a conservative gold price of US$3,600/oz and an internal rate of return (IRR) of 41%. At the July 2026 spot price of US$4,075/oz, these metrics improve to a post-tax NPV5% of US$1.6 billion and an IRR of 49%, with payback achieved in under two years. Capital expenditure is estimated at US$475 million, including strategic investments in water and power infrastructure to support potential future expansions.
Project Financing Secured with Sprott and Development Pathway Clear
Wia Gold has secured indicative project financing terms with Sprott Resource Lending Corp, comprising a US$360 million senior secured debt facility and a US$15 million equity subscription. This financing package, subject to customary conditions including final due diligence and receipt of key permits, underpins the project’s development and supports a well-defined pathway to first gold production targeted for Q4 2028.
Supported by a healthy cash balance of A$119 million as of June 30, 2026, and the ongoing advancement of permitting, including the Mining Licence and Environmental Clearance Certificate expected in H2 2026, Wia is progressing execution readiness activities. These include finalising project execution plans, advancing detailed engineering, and initiating long-lead procurement.
Geological and Metallurgical Confidence
The Kokoseb deposit is hosted within the Kuiseb schist formation of the Pan-African Damaran Orogenic Belt in Namibia’s Erongo Region, with gold mineralisation closely associated with sulphide minerals such as pyrrhotite and arsenopyrite. The updated resource model benefits from an extensive drilling database of over 191,000 metres, combining reverse circulation and diamond drilling, with rigorous sampling and assaying protocols ensuring data quality.
Metallurgical testwork confirms Kokoseb’s ore is free milling, with gravity recovery accounting for approximately 45% of gold extraction and overall leach recoveries averaging 92%. The processing plant design incorporates a conventional crushing, grinding, gravity recovery, and carbon-in-pulp circuit with a 48-hour leach residence time, balancing capital and operating costs with gold recovery optimisation.
Infrastructure and Sustainability Considerations
The project benefits from proximity to existing infrastructure, including road access, power from NamPower’s grid, and water supply from a newly developed borefield in the Omaruru Alluvial Plains. The DFS includes a filtered tailings storage facility designed to meet international standards, with staged construction and progressive rehabilitation plans.
Environmental and social impact assessments have been completed and submitted, with community engagement ongoing. The project anticipates minimal environmental risks, with geochemical testing indicating low acid mine drainage potential. Land access arrangements are progressing in line with Namibian regulations and customary land tenure, with relocation and compensation plans developed for affected homesteads.
Opportunities and Risks Ahead
While the DFS and updated resource provide a strong foundation, several opportunities remain to enhance project value. These include potential plant throughput increases to 7 Mtpa, further underground resource development, and processing of mineralised stockpiles currently classified as waste. Wia is actively pursuing these options alongside advancing engineering and permitting.
Key risks typical of projects at this stage include resource estimation uncertainties, permitting timelines, execution of construction and mining operations, and securing final project financing. The company has incorporated contingency allowances and risk management strategies to mitigate these factors.
As Wia advances towards financial close and construction, the market will be watching how the company balances exploration success with development execution in one of Africa’s more attractive mining jurisdictions.
Bottom Line?
Wia Gold’s Kokoseb project is poised for development with a robust resource base and financing in place, but the underground resource remains an exploration target requiring further validation.
Questions in the middle?
- How will ongoing drilling refine the maiden underground resource and impact project economics?
- What are the key milestones and risks in securing final permits and completing project financing?
- Could processing of mineralised waste stockpiles materially extend Kokoseb’s mine life?