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Posted By OrePulse
Published: 29 Dec, 2025 09:41

West Wits secures key ground for South African gold mine expansion

By: The Sydney morning herald

West Wits Mining has fortified the expansion pathway for its Qala Shallows underground gold mine in South Africa's prolific Witwatersrand Basin by securing a key new prospecting tenement. The newly granted right enables the company to extend mining eastward into deeper sections of the Kimberley Reefs ore body, laying the groundwork for future phases of the Witwatersrand Basin Project.

Qala Shallows commenced production in mid-October 2025, transitioning West Wits from developer to producer. The mine is initially focused on the upper sections of the Kimberley Reefs, which host a mineral resource estimate of 5.025 million ounces of gold at an average grade of 4.66 grams per tonne. The current mine plan targets steady-state production of 70,000 ounces per year over a 12-year period, supported by a 17-year overall mine life.

A definitive feasibility study released in July 2025 projects robust economics, including a net present value of US$500 million and an internal rate of return of 81%, based on a conservative gold price assumption. The operation is forecast to generate approximately US$983 million in post-tax free cash flow.

The expansion is integral to West Wits’ long-term "Project 200," which aims to achieve annual gold production of 200,000 ounces through staged development, including the planned Bird Reef Central expansion and exploitation of other independent reefs within the project area. With existing mine infrastructure—including an adit, decline, and shaft—already in place, the company is positioned to accelerate its growth trajectory.

As the historic Witwatersrand Basin continues to underpin South Africa’s gold mining heritage, West Wits’ modern, phased approach represents a significant reinvigoration of the region’s mining narrative, combining operational efficiency, local benefit, and sustained resource development.

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