West Wits has secured a key tenement for South African gold mine expansion
The company announced the withdrawal with a definitive feasibility study in July this year. This implied a net present value of US$500 million (AU$755 million) and an internal rate of return of 81 percent, offering the kind of financials most young miners dream of. Adding to its competence, Qala Shallows already has the bones of a mine, with a gallery, a drop-off and a shaft ready for use, giving West Wits a rare jump-start.
The operation is expected to pump around 70,000 ounces of gold every year for 12 years, generating a whopping US$983 million (AU$1.5 billion) in after-tax free cash flow, based on a conservative gold price of US$2850 per ounce.
The Witwatersrand Basin has produced mining legends for more than a century. The gold-enriched basin is a world-class gold mining province with the world’s largest known gold reserves, producing more than 1.5 billion ounces of gold since the early 1900s.
West Wits now looks set to write the script of its own mining saga. Once this project reaches all stages, forecasts suggest it will be one of the biggest positive stories the region has seen in decades: a true revival of the South African gold mining story built on modern standards, local benefit and long-term vision.
With the funding, infrastructure and momentum now in place, the long-lasting Witwatersrand dream is quickly becoming a reality.
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