• West Wits starts moving stockpiled Qala Shallows ore to Ezulwini processing plant
• Stockpiling to continue through to the first half of 2026 before processing begins
• Existing box cut and decline refurbished, enabling immediate access to underground ore

 

Special Report: West Wits Mining has taken another step towards gold production from its flagship Qala Shallows project in South Africa with mobilisation underway.

The company’s external contractor has started transferring previously stockpiled ore to the Ezulwini processing plant under its toll treatment agreement with Sibanye-Stillwater.

This material is being stacked at a designated storage pad made available by the plant for West Wits Mining’s (ASX:WWI) exclusive use.

Subject to final funding, stockpiling will continue through to the first half of 2026 at which point processing of the ore will commence, culminating in the first gold pour.

Mobilisation of contractors to the Qala Shallows site started in June 2025, marking a significant milestone in the company’s transition from early works to project execution.

This phase includes the establishment of permanent mine infrastructure to support the project’s steady-state production target of 65,000t per month run-of-mine for an annual average of 70,000oz over 12-years.

The company has already refurbished the existing box cut and decline, enabling immediate access to underground ore with its early work allowing for efficient ramp-up to mining operations following mobilisation.

 

Qala Shallows

Under the base case in the updated definitive feasibility study, Qala Shallows is expected to generate US$2.7bn in revenue and free cash flow of US$983m.

Post-tax net present value and internal rate of return (both measures of profitability) are estimated at US$500m and 81% respectively.

Peak funding is expected to be US$44m with payback from the end of this period estimated at eight months.

All in sustaining costs have been calculated at US$1289/oz.

The updated DFS uses a gold price of US$2850/oz and an exchange rate of ZAR18 to US$1.

 

Current and upcoming activity

WWI’s key suppliers and contractors have started mobilisation and delivery of equipment and services.

EPCM partners Solrock Mining Services and Bara Consulting are leading project management and execution while RHAM equipment delivered the first load haul dump unit at the end of June 2025.

HPE Hydropower delivered the training power pack in mid-July, AECI will deliver explosives for slipping work from the start of August and GST Supplies will mobilising the drill rig by end September for the start of production in October 2025.

Key mobilisation activities include on-site surveying and geolocation by technical teams, the installation of critical infrastructure such as fuel and fluid storage systems and the preparation of operational support areas

Once the mobilisation phase is completed and subject to WWI securing final funding, the Qala Shallows project will begin producing ore from the first production blast.

A targeted 30,000-tonne stockpile will be built over the initial six month period to support continuous feed to the Ezulwini plant and ensure smooth processing during the production ramp-up phase.

 

 

This article was developed in collaboration with West Wits Mining, a Stockhead advertiser at the time of publishing. 

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.