West Wits' Decline Completion Prompts Higher-Grade Production, Study Draft Expected by July 2026

• West Wits Mining has reached a major operational milestone at its Qala Shallows project completing a key decline and breaking into Level 2, enabling direct access to the ore body and higher-grade stoping areas.
• The shift from development ore to stoping ore is expected to progressively lift grades toward a target of approximately 3 g/t significantly improving unit economics and all-in sustaining costs.
• The company is finalising a scoping study is expected by end of July 2026 covering expanded production scenarios, processing options, and infrastructure requirements, with a view to scaling toward a 70,000-ounce steady-state target by 2028.
• West Wits is approaching financial close on its syndicated debt facility with first drawdown expected to fund the remaining capital requirements through to peak funding and eventual breakeven.
• Beyond Qala Shallows, the company is moving to convert an exploration target at its Bird Reef Central project in the second half of 2026, signalling a broader multi-asset growth strategy within the Witwatersrand Basin.

West Wits Mining (ASX:WWI) has crossed a meaningful threshold in the development of its Qala Shallows gold project in South Africa, with the completion of a key underground decline delivering direct access to its primary ore body for the first time. Managing Director and CEO Rudi Deysel spoke in detail about operational progress, mining economics, processing strategy, and the company's broader growth ambitions within the Witwatersrand Basin.

Breaking Into Level Two: Pivotal Infrastructure Milestone

The completion of the underground decline and the associated breakthrough into Level 2 represents one of the most significant milestones in the development of Qala Shallows. For a project at this stage, it marks the transition from infrastructure-building to genuine ore body access - a shift with direct implications for grade, tonnage, and revenue.

Prior to this development, ore was being extracted from the decline excavation itself, a structure measuring 4.5 metres by 4.5 metres. This large cross-section necessarily introduced substantial dilution, as significant volumes of surrounding waste rock were mixed with the ore during extraction. The result was lower grades and reduced recoveries at the processing plant.

With the first reef drive level now accessible, the focus shifts to stoping which makes extraction of ore directly from the ore body in smaller more precise panels. This not only improves the grade of material brought to surface, but also allows mining to proceed simultaneously in multiple directions, creating operational flexibility and a growing inventory of working faces.

Grade Profile of Stoping Ore

Approximately 80% of ore being produced at Qala Shallows was still sourced from development activities. This ratio is expected to shift materially as new stoping panels come online. Deysel outlined the trajectory,

"The grades will gradually go up and ultimately we need to get to 3 g/t that we expect out of the stopping areas and which is ultimately the run of mine material that we bring to surface."

This transition has direct implications for unit economics. A higher grade ore stream means more gold content is extracted for the same mining effort, reducing the all-in sustaining cost per ounce and improving margins across the operation. The processing plant also benefits, as higher-grade feed material typically results in improved recoveries.

The Witwatersrand ore body at Qala Shallows exhibits a relatively even distribution of gold throughout the reef, a characteristic Deysel noted has historically contributed to the consistency of production from Witwatersrand-style deposits.

Equipment and Fleet Expansion

A critical enabler of this production ramp-up has been the arrival of new equipment, including load-haul-dump machines that can now be deployed across multiple mining ends simultaneously. Deysel emphasised that equipment availability and utilisation are tracked daily through formal KPIs, covering both mechanical availability, and actual productive utilisation.

The practical significance of the new fleet extends beyond raw output. It improves the ability to conduct planned maintenance without disrupting production cycles, reducing the risk of unplanned stoppages. As Deysel noted, the equipment upgrade has also had a positive effect on workforce morale, a factor that should not be underestimated in underground mining environments where operator discipline is directly linked to safety and productivity outcomes.

Interview with Rudi Deysel, Managing Director & CEO of West Wits Mining

Operational Risk Management

It is important to optimise the number of active working faces in the underground operation at any given time. In mining terms, more faces equates to more flexibility: operators can adjust the sequence and pace of extraction to manage tonnage targets, respond to equipment downtime, or capitalise on higher-grade zones.

Deysel described the current priority as achieving consistent advance rates and maintaining discipline in mining cycles, noting that this discipline is as much a safety driver as an operational one.

"A safe mind is a productive mine. It's now to really start driving that productivity, to hit the target plan that we've got and make sure that we achieve that, and that's the big drive for us from now operationally."

This reflects the operational philosophy guiding the team as it transitions from the start-up phase into a more sustainable production rhythm.

Scoping Study Defining the Path to Scale

West Wits is currently progressing a scoping study with first draft due by end of July 2026 with the objective of identifying the optimal production plan for expanding Qala Shallows toward a 70,000-ounce-per-year steady-state target by 2028. The study is examining a range of variables including mining methods, infrastructure requirements, and processing options.

On the processing side, the company is evaluating both a standalone plant and the use of existing third-party processing capacity in the region. Tailings management and environmental permitting are also key considerations in this analysis. Deysel characterised the study as a dynamic process, acknowledging that different scenarios may remain viable until a final solution is confirmed - particularly on the processing side, where capital trade-offs are material.

On the mining side, Deysel indicated that answers may emerge more quickly. He also noted that the deeper sections of the ore body carry higher grades and are suited to fully mechanised mining methods, which typically carry lower unit costs than the hybrid conventional stopping currently employed in the shallower areas.

"The deeper we go, the higher the grades," Deysel observed, "and with mechanised mining which is always much cheaper in terms of unit cost. We will still have that good unit cost with higher grades and bigger quantities."

Balance Sheet and Path to Breakeven

West Wits is approaching financial close on its syndicated debt facility. Once finalised, the initial drawdown will fund the remaining capital requirements through to peak funding, after which the project is expected to generate sufficient cash flow to move toward breakeven. Based on the feasibility study, the company estimates a 30-month timeline to breakeven placing that milestone in the vicinity of late 2027 or early 2028. 

The use of pre-existing underground infrastructure at Qala Shallows has materially reduced capital requirements relative to a greenfield development. Deysel highlighted that most mines require three or more years simply to complete a decline before ore production begins. At Qala Shallows, first ore was delivered within weeks of mining commencing last October substantially compressing the payback timeline.

Bird Reef Central and the Witwatersrand Basin

Looking beyond Qala Shallows, West Wits is preparing to commence exploration work at its Bird Reef Central project in the second half of 2026. This project hosts an exploration target containing both gold and uranium mineralisation, and the goal is to convert this into a formal resource. The deposit as broadly analogous to Qala Shallows in its structural setting, with the added dimension of uranium as a potentially significant co-product.

With a scoping study for the expanded basin project expected to progress toward a definitive feasibility study over the next three years, West Wits is positioning itself with a long-term narrative as a multi-asset gold producer with a credible development pipeline.

The Investment Thesis for West Wits Mining

• Infrastructure advantage: Access to historic underground workings has eliminated years of development time and materially reduced peak funding requirements compared with a conventional greenfield mine build.
• Improving grade profile: The transition from development ore to stoping ore is expected to lift grades progressively toward 3 g/t, with direct positive implications for unit costs and margins.
• Defined timeline to breakeven: Based on the feasibility study, breakeven is estimated approximately 30 months from commencement, with the company already nine months into that period.
• Scoping study as a near-term catalyst: The first draft of the scoping study could materially re-rate the project by quantifying the path to 70,000 ounces per year.
• Multi-asset optionality: The Bird Reef Central project introduces uranium as an additional revenue stream and represents a second development-stage asset within the Witwatersrand Basin.
• Debt facility nearing close: Financial close on the syndicated facility is imminent, removing a key funding uncertainty and providing a clear runway to steady-state production.
• Mechanised mining upside: Deeper zones of the ore body carry higher grades and are suitable for fully mechanised extraction, which carries lower unit costs - potentially improving project economics significantly at scale.
• Established gold jurisdiction: South Africa's Witwatersrand Basin is one of the most productive gold-bearing geological formations in history, providing geological credibility to the resource base.

Macro Thematic Analysis

Gold's role as a store of value and hedge against monetary uncertainty has reasserted itself in recent years, with prices reaching historic highs and investor demand for gold equities recovering strongly. For junior and emerging producers, this environment is particularly meaningful: margin expansion driven by higher gold prices compounds the operational improvements that come with production ramp-up. 

West Wits Mining sits at the intersection of these dynamics as a project transitioning from development to production in a period of elevated gold prices, with the additional optionality of uranium exposure at a time when nuclear energy is experiencing a global policy renaissance. The combination of a historically significant ore body, a defined path to scale, and dual-commodity exposure positions the company to benefit from multiple macro tailwinds simultaneously.

TL;DR

West Wits Mining has achieved a key underground milestone at Qala Shallows, gaining direct access to its ore body and beginning the grade improvement journey toward 3 g/t. A scoping study draft by late July 2026 could re-rate the project by defining the path to 70,000 ounces per year. With breakeven approximately 21 months away and a debt facility nearing close, the near-term operational and financial milestones are converging. The Bird Reef Central gold-uranium project adds a second growth asset within the Witwatersrand Basin.

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