West Wits opens South Africa’s first new gold mine in 15 years
Brought to you by Bulls and Bears
Doug Bright
West Wits Mining has officially opened the Qala Shallows underground mine west of Johannesburg, becoming the first new underground gold mine to be developed in South Africa in 15 years.
The Minister of Mines and Petroleum Resources, Mr. Gwede Mantashe, Australian High Commissioner Her Excellency Tegan Brink, Minerals Council South Africa CEO Mzila Mthenjane, community leaders, investors and media.
The company said the event underlined the project’s role in breathing new life into the historic Witwatersrand gold region and demonstrated the continued existence of modern, safe underground mines in the Central Rand Goldfield.
Since the mobilization in July, Qala Shallows has achieved every major milestone.
‘The Witwatersrand built Johannesburg and shaped our economy and still has significant potential for the future.’
Rudi Deysel, CEO and managing director of West Wits
The first ore reached the surface in mid-October, underground infrastructure is in place and a surface stockpile of around 30,000 tonnes is being built ahead of the operation’s first gold pour at Sibanye-Stillwater’s Ezulwini processing plant, scheduled for March next year.
Qala Shallows forms phase one of the company’s wider Witwatersrand Basin project (WBP), which hosts a resource of 5.025 million ounces at 4.66 grams per tonne (g/t) gold.
Key benchmarks envisaged for the mine include an initial 17-year mine life, based on steady-state production of 70,000 ounces of gold per year at a 12-year production sweet spot.
Production is expected to decline over the last five years as higher-quality or more easily accessible ore is depleted; Annual production is likely to fall to around 40,000-50,000 ounces until the reserve is fully mined.
West Wit said the operation is expected to contribute more than US$1.15 (AU$1.74 billion) to the South African economy and create more than 1000 direct jobs in phase one, with a strong emphasis on local recruitment, procurement and corporate development.
West Wits CEO and managing director Rudi Deysel said: “For years many believed that the Central Rand had reached the end of its mining lifespan, but Qala Shallows shows that with meticulous geological study, clear planning and disciplined execution, and strong collaboration between government and business, new underground gold mines can still be developed in this region.”
The opening of the mine marks West Wits Mining’s transformation from developer to producer and lays the foundation for decades of growth.
Future phases, including the company’s planned Bird Reef Central expansion and other areas within the project’s remit, will feed into the company’s long-term “Project 200” goal to achieve annual gold production of 200,000 ounces through disciplined, phased evolution.
With the initial US$12.5 million (AU$18.9 million) raised from the US$35 million (AU$52.9 million) facility from US-based Nebari Capital, West Wits says its mine development is now fully funded and its underground fleet and workforce are growing rapidly.
Facility employment has already exceeded 100 staff and is on track to increase to approximately 150 with first gold and over 1,000 at full production.
With Qala Shallows now in operation, the Witwatersrand is proving to have sufficient strength to sustain significant untapped potential.
Once this project reaches all stages, it will be one of the biggest positive stories the region has seen in decades; A true reimagining of the legendary South African gold mining story, built on modern standards, local benefit and long-term vision.
At full capacity (approximately 200,000 ounces per year) the resource could potentially support a mine life of 20 to 25 years, depending on the conversion rate from resource estimates to reserves, gold prices and overall application.
The company’s broader vision for the Witwatersrand Basin project could restore the region’s decades-old status as a gold powerhouse and extend the dream 200,000 ounce per year project for generations if the price of the yellow metal stays hot.
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