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West Wits Mining Limited (ASX:WWI) has reached a significant operational milestone by breaking through its 1 West Decline into the 2 Level mining horizon at Qala Shallows within South Africa's Witwatersrand Basin. This breakthrough advances the gold development project from initial diluted development ore to historically pre-developed underground workings containing established, unmined stoping zones. With a fully funded project finance package now secured and the first drawdown completed, the company is progressing toward steady-state production targets while continuing exploration at its Bird Reef Central uranium and gold project.
Key Highlights
- West Wits Mining Limited (ASX:WWI) achieved the 1 West Decline breakthrough into the 2 Level mining horizon at Qala Shallows in May 2026, enabling access to historically pre-developed stoping areas.
- Underground development reached 544 metres by 30 June 2026, with on-reef development ore deliveries producing 4.6kg (148oz) of gold during the quarter and 7.05kg (227oz) year-to-date.
- Surface infrastructure is 45% complete, including a new operational tarred access road, a finished permanent warehouse, and an implemented storm water management system.
- The company secured a comprehensive project finance package totaling ZAR 1.115 billion, comprising a ZAR 875 million Senior Loan Facility, ZAR 150 million Working Capital Facility, and ZAR 90 million Cost Overrun Debt Facility from Absa Bank and Nedbank CIB.
- As of 30 June 2026, West Wits holds approximately A$32 million in cash, supporting operations and growth initiatives such as the Bird Reef Central uranium and gold exploration program.
- Portfolio rationalisation includes divesting the Mt Cecelia Project to Aventine Resources Limited through a value-accretive deal involving equity, royalty, and milestone payments.
- An expanded Scoping Study is underway to evaluate multiple development and processing options, including standalone processing, third-party partnerships, and additional ore source integration.
West Wits Mining Advances Sustainable Gold Production in South Africa's Witwatersrand Basin
West Wits Mining Limited, listed on the ASX, is advancing gold development operations in the Witwatersrand Basin, Gauteng, South Africa. The company’s flagship asset, the Qala Shallows Project, is situated in one of the world’s richest gold-producing regions. West Wits is focused on transitioning to sustainable gold production, with Qala Shallows as its core operation. Additionally, the company is developing the Bird Reef Central uranium and gold project as a strategic organic growth initiative.
The Witwatersrand Basin has a century-long history of gold production. West Wits leverages historical mining infrastructure and geological expertise to accelerate project timelines by utilising pre-existing underground workings. This approach reduces capital expenditure and development time compared to greenfield mining, forming a key component of the company’s project optimisation strategy, as outlined in its detailed feasibility study.
1 West Decline Breakthrough Unlocks Access to Higher-Grade Stoping Zones
In May 2026, West Wits Mining achieved a critical operational milestone by breaking through the 1 West Decline into the 2 Level mining horizon at Qala Shallows. This breakthrough shifts the operation from extracting initial diluted development ore to accessing historically pre-developed underground stoping areas that require minimal modification for modern trackless mining equipment. The milestone aligns with the Definitive Feasibility Study’s mine plan optimisation aimed at accelerating payback, enhancing capital efficiency, and strengthening the project’s business case.
Access to these historical stoping zones is estimated to save approximately one year of development compared to establishing new access. This enables the operation to transition from lower-grade on-reef development ore to higher-grade production zones, boosting mine grades and cash flow during ramp-up. This advancement supports the company’s goal to reach the Definitive Feasibility Study’s steady-state production of around 70,000 ounces annually, improving financial returns and expediting positive cash flow.
Underground Development and Early Gold Production Progress
By 30 June 2026, West Wits Mining completed 544 metres of underground development at Qala Shallows, including 375 metres of on-reef and 168 metres of waste development. The underground operation has commenced ore deliveries to Sibanye Stillwater Ltd’s Ezulwini Plant for processing, establishing a production pipeline ahead of full ramp-up.
During the quarter, early development ore deliveries yielded 4.6 kilograms (148 ounces) of gold, with year-to-date production totaling 7.05 kilograms (227 ounces). These results validate operational capabilities and ore quality assumptions. The company expanded its underground fleet by adding two 10-tonne Load-Haul-Dump (LHD) vehicles and a third Jumbo drill rig, enhancing mining flexibility and supporting accelerated development.
Advancement of Surface Infrastructure Towards Operational Readiness
Surface infrastructure development at Qala Shallows is 45% complete as of 30 June 2026. Key milestones include completion and operation of a new tarred access road improving logistics and site accessibility, and the finishing of a permanent warehouse providing essential storage and logistics support. Additionally, the company completed excavation of a pollution control dam and progressed storm water management systems, reflecting integrated environmental and operational infrastructure planning.
The operations precinct now features offices, workshops, stores, security, access control, and other critical facilities. These developments fulfill essential infrastructure requirements for sustainable mining operations and demonstrate West Wits’ progress in establishing a modern mining operation within the Witwatersrand Basin.
Securing Comprehensive Project Finance with Initial Drawdown Completed
West Wits Mining has finalized a project finance package totaling ZAR 1.115 billion, including a ZAR 875 million Senior Loan Facility, a ZAR 150 million Working Capital Facility, and a ZAR 90 million Cost Overrun Debt Facility, arranged with South African banks Absa Bank and Nedbank CIB. This financing milestone underpins full project implementation and growth initiatives.
The company completed the first drawdown of the Senior Loan Facility during the quarter, enabling full-scale project funding. This follows repayment in full of the USD 12.5 million Nebari Loan Facility, which had provided bridge funding since September 2025. As of 30 June 2026, West Wits holds approximately A$32 million in cash, ensuring funding stability for operational priorities including accelerated development, production ramp-up, and expanded scoping studies.
Expanded Scoping Study Explores Multiple Growth Pathways to 200,000 Ounces Annually
West Wits Mining has broadened its Scoping Study to evaluate multiple development and processing options across its Witwatersrand Basin Project. The assessment includes potential construction of a standalone processing plant, third-party processing partnerships, and integration of additional ore sources beyond Qala Shallows. This comprehensive study aims to identify the optimal route to achieving an ambitious production target of 200,000 ounces per annum, a substantial increase from the current steady-state projection of approximately 70,000 ounces.
Consultant results are expected by the end of July 2026, with public release anticipated in early August 2026. This expanded study reflects West Wits’ strategic approach to growth within its asset portfolio and the broader Witwatersrand Basin, leveraging infrastructure, historical workings, and geological expertise. Outcomes will be pivotal in shaping the company’s medium-term growth strategy and capital allocation beyond the current development phase.
Bird Reef Central Uranium and Gold Project Exploration Planning Progresses
West Wits Mining is finalizing plans for an exploration program at the Bird Reef Central (BRC) Uranium and Gold Project, targeting a declared Uranium JORC Mineral Resource Estimate. The recent Senior Loan Facility drawdown has enabled capital allocation toward this growth initiative, underscoring the company’s intent to develop BRC alongside its core Qala Shallows operation. The project offers exposure to uranium and gold within the mineral-rich Witwatersrand Basin.
Capital allocation to BRC exploration highlights management’s confidence in the project’s potential and the company’s financial capacity to pursue multiple strategic initiatives. Exploration planning is advancing toward drilling and resource definition, with the JORC Mineral Resource Estimate as a key development milestone. This strategy allows West Wits to build value from exploration assets while maintaining focus on core production.
Portfolio Streamlining via Mt Cecelia Project Divestment
West Wits Mining has agreed to divest the Mt Cecelia Project to Aventine Resources Limited through a value-accretive deal including A$2.0 million in Aventine equity, a 1% net smelter royalty (NSR), and A$1.0 million in milestone payments upon defining a 500,000-ounce gold JORC Resource. This rationalisation unlocks value from Mt Cecelia while retaining upside exposure at no ongoing cost through royalties and milestones.
The transaction aligns with West Wits’ strategic focus on Witwatersrand Basin assets and represents a capital-efficient approach to divesting non-core exploration projects. By transferring Mt Cecelia to Aventine, a Western Australia-focused explorer, the company enables specialised development while maintaining participation in future value creation. This optimises capital allocation toward core Qala Shallows production and BRC growth projects.
Capital Consolidation Enhances Institutional Appeal
West Wits Mining completed a 10-for-1 share consolidation, reducing issued shares to 434,647,512 ordinary shares. This restructuring improves institutional readiness following project finance close and creates a more efficient capital structure. Such consolidations typically enhance share register metrics and appeal to institutional investors and financial institutions.
The consolidation reflects West Wits’ progression as a development-stage company moving toward production. A streamlined share structure improves trading characteristics and facilitates institutional participation in future equity raises or strategic transactions. The timing alongside major finance and operational milestones demonstrates integrated corporate governance and capital management as the company transitions to operational phases.
Investor Outlook and Operational Priorities
West Wits Mining has outlined key priorities for the upcoming quarter, including accelerating development rates, ramping up production, and advancing the expanded Scoping Study to define the pathway to 200,000 ounces per annum production. The 1 West Decline breakthrough, secured project finance, and surface infrastructure progress mark significant strides against the development timeline. The funding structure and early production validate the foundation for accelerated operational growth.
Investors will likely monitor quarterly development metres, ore grades delivered to the processing plant, quarterly production ounces, and surface infrastructure completion progress. Results from the expanded Scoping Study and the company’s strategic pathway toward 200,000 ounces per annum will influence perceptions of growth potential and long-term value. Management’s indication of pursuing standalone BRC Uranium and Gold Project exploration highlights a multi-asset development strategy under active consideration.
