West Wits Mining has received a second R236 million senior debt drawdown, taking total funding received for Qala Shallows to R575 million and supporting its claim that the project is funded through steady-state production. Underground development is accelerating, with stoping scheduled to begin in February 2027 and annual recovered gold targeted at 70,000 ounces by early 2029.
- R236 million second drawdown received under the R875 million Absa and Nedbank senior facility
- Underground development reached 1,150 metres by September, with September advance rising to 200 metres
- Stoping is scheduled to begin in February 2027, ahead of commercial production targeted for Q4 2027
- Surface infrastructure was 61% complete at September, while permanent backup power is due for commissioning in October
- Recovered gold guidance rises from 10,000-15,000 ounces in 2027 to 70,000 ounces in 2029
Second debt drawdown takes Qala Shallows funding to R575 million
West Wits Mining Limited (ASX:WWI) says its Qala Shallows gold project is now fully funded to steady-state production after receiving a second R236 million drawdown from the Absa and Nedbank senior debt facility. The latest advance takes drawdowns under the R875 million facility to R575 million, leaving R300 million available.
The company said the drawdown followed cost-to-complete and covenant testing, and was received by its South African subsidiary, West Wits MLI. It also has an undrawn R150 million working capital facility, a R90 million cost-overrun debt facility and R57 million in a cost-overrun equity facility. The funding position builds on the initial senior loan drawdown, which was reported after the senior facility reached financial close.
Underground development accelerates ahead of February stoping
Development progress is moving in the direction required for the production ramp-up. Qala Shallows had completed 1,150 metres of underground development by the end of September, comprising 513 metres of reef development and 637 metres of waste development.
Monthly advance increased from 73 metres in July to 183 metres in August and a record 200 metres in September. West Wits attributed the improvement to greater face availability and better underground fleet utilisation, while targeting 600 metres per month during 2027. The company’s 1 West Decline breakthrough has opened access to unmined stopes around the historic 2 Level area, where infrastructure is being developed for trackless equipment.
That access is intended to support primary production from stoping from February 2027. Gold produced during 2026 has so far come from ore generated by on-reef development, rather than the mine’s planned primary stoping operation.
Surface works and power remain critical to the schedule
Surface infrastructure was 61% complete at the end of September, with the haulage road finished and handed over. The pollution control dam and permanent ore handling facility, both described by the company as key components of environmental compliance, were at an advanced stage.
The project’s 2.5MW permanent backup generators are scheduled for commissioning in October 2026. The bulk power connection is planned for early 2027, with technical adjudication by City Power still the next step. West Wits continues to target completion of critical surface infrastructure in the third quarter of 2027 and commercial production in the fourth quarter.
Production guidance rises from development ore to steady-state output
Recovered gold production is forecast at 10,000 to 15,000 ounces in 2027, 42,500 ounces in 2028 and 70,000 ounces in 2029. The company is targeting a steady-state rate of 70,000 ounces a year in the first quarter of 2029, supported by an expected processing rate of about 840,000 tonnes annually.
The stated ramp-up depends on several linked milestones: underground development reaching its planned rate, stoping beginning in February, surface works being completed and bulk power being commissioned. September quarterly results were still being finalised at the time of the announcement, so the next activities report should provide a fuller operating and cash-flow picture.
Fatal mud rush keeps execution risk in view
The update also records a fatal mud rush incident in June 2026. West Wits said ground and water management had since become a central underground focus, with 56 crew self-stoppages recorded between July and September; work resumed only after areas were made safe and signed off.
The company is also finalising commissioning plans for exploration at its Bird Reef Central uranium and gold project. Separately, it is reviewing the Project 200 Scoping Study to increase the portion of Measured and Indicated Mineral Resources included in the production target before releasing study results under ASX requirements. The production targets cited for Qala Shallows also contain inferred mineral resources, according to the company’s disclosures.
Bottom Line?
The financing hurdle has receded, but Qala Shallows now faces the harder test: converting faster development into stoping, reliable power and commercial production on schedule.
Questions in the middle?
- Can underground advance rates approach the 600 metres per month target without compromising safety or requiring additional funding?
- Will the bulk power connection and critical surface infrastructure be delivered in time to support the planned Q4 2027 commercial production date?
- How will the September quarterly report change the picture on development costs, early production and available debt capacity?