West Wits Mining Limited

ABN 89 124 894 060

Interim financial report for the half-year 31 December 2019

West Wits Mining LimitedDirectorsJoint Company SecretariesPrincipal registered office in AustraliaShare and debenture registerAuditorSolicitorsBankersStock exchange listings Website

Mr Michael Quinert Executive Chairman

Mr Daniel Pretorius Non-Executive Director

Mr Hulme Scholes Non-Executive Director

Dr Andrew Tunks Non-Executive Director

Mr Simon Whyte

Mr Phillip Hains

Level 3, 62 Lygon Street Carlton VIC 3053 Australia

Automic Pty Ltd

Level 5 126 Phillip Street Sydney NSW 2000 +61 2 9698 5414

William Buck

Level 20, 181 William Street Melbourne VIC 3000

Quinert Rodda & Associates Suite 1, Level 6, 50 Queen Street Melbourne VIC 3000

National Australia Bank Level 2, 330 Collins Street Melbourne VIC 3000

ASX: WWIhttp://www.westwitsmining.com/

Corporate directory

Review of operations and activities

Highlights

South Africa

  • Engineering firm, Bara Consulting, completed the conceptual model of the mine plan which illustrated the robustness of the Witwatersrand Basin Project's ("WBP") 3.65Moz Au JORC Resource1 to support underground mine development.

  • Submission of the finalised Environmental Impact Assessment Report ("EIAR"), Mine Works Program and Social Labour Plan to the Department of Mineral Resources ("DMR") in July which commenced the DMR's final assessment of the Mining Right Application.

  • Final production at Kimberley Central Open-Pit project in July 2019 delivered 12.9kg of gold with a further 8.6kg allocated through the toll treating investigation with gold sales averaging USD 1,465/oz.

Australia

  • The Group continues to monitor growing exploration activity in the Paterson Province which was highlighted by Carawine Resources geophysical work at their Baton project which adjoins WWI's Mt Cecelia project to the south east and was subject to RIO's $6m farm-in agreement in October 20192.

Corporate

  • West Wits enters subscription agreement with US based investment group to raise USD 1M through the issue of 1,000,000 convertible notes with a conversion price of USD 0.007 (0.7 US cents) (approx. 1 AUD cents) per share and minimum term of 3-years3.

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West Wits Mining Limited ("WWIs" or "the Group") is pleased to present its latest half yearly report for the period ending 31st December 2019.

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SOUTH AFRICA

Witwatersrand Basin Project, Central Rand (WWI: 66.6%)

Exploration

Table 1 (below) shows the global 3.648Moz JORC Resource as at 30th June 2019 which was announced on the 27th September 2019. This statement updated the prior year's resource taking into account depletion of 8,000oz (Inferred - 0.1M tonnes at 2.8g/t) resulting from tonnes removed in the Kimberley Central Open Pit operations1.

MINERAL RESOURCE ESTIMATE ("MRE") FOR THE WITWATERSRAND BASIN PROJECT AT 2.0G/T CUT-OFF

Category

Tonnes (millions)

Grade (g/t Au)

Ounces Au

Measured

12.0

3.65

1,420,000

Indicated

9.1

3.37

988,000

Measured & Indicated

21.1

3.55

2,408,000

Inferred

12.8

3.0

1,240,000

Total

33.9

3.4

3,648,000

TABLE 1: (notes) MRE set at a 2.0 g/t Au cut-off. Reported in accordance the JORC Code of 2012. Number differences may occur due to rounding errors.

To support the development of 3rd party engineering firm BARA Consulting's conceptual life of mine plan and scoping study, the block boundaries from the Kimberley East exploration target of between 600,000oz (6.5M tonnes at 3.0g/t) and 1,000,000oz (8.0M tonnes at 4.0g/t)4 were digitised and projected to the wireframe by WWI's South African geology consultants Shango Solutions. The work performed enabled the development of a geological model to estimate the potential K9A reef payshoots. The K9A reef is situated approximately 10m stratigraphically above the K9B reef which forms part of the declared 3.648Moz AU JORC resource1. The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Development

In anticipation of the granting of a mining right, West Wits appointed BARA Consulting to develop a conceptual mining layout (Image 1). The concept mining layout was created using the geological information obtained from Shango Solutions, which is also responsible for estimating the JORC resource statement. The concept layout from BARA was then use to create a production and ounce schedule for the project.

Typical bench marked costs from major mining companies in the vicinity and long-term gold price consensus estimates were used for internal financial modelling. The results were found to be promising, demonstrating that the resource and concept model were robust in being able to cope with varying gold and ZAR inputs which provides motivation to move towards a feasibility study.

WWI plans to complete a pre-feasibility study once a mining right has been granted. Substantial work has been done to date on preparatory work in advance of feasibility studies and the conceptual model identifies four separate areas for development which offers WWI the flexibility to stagger both the studies and development to manage CAPEX requirements.

Image 1: Block model from the conceptual mine plan illustrating the upper section of the Kimberley East Underground target. The blue line dipping from the right side depicts development of the existing Qala Adit which runs at 10-15o which will enable trackless haulage.

The Group engaged a local mine contractor to model and cost the initial 3-year phase of mine development and production via the Qala Adit (Image 2). The historical mine was producing via the Qala Adit when production ceased around 2000. This area has been identified as the target for the first phase of development due to the estimated low CAPEX requirement resulting from it being a trackless haulage adit and the relatively short period to production (estimated at 2-3 months). The work performed during the period has advanced plans for the transition to mining once a mining right has been granted.

Image 2: Qala Adit will provide access to the Kimberley East underground target.

The concept model then targets development of the Qala Shaft as a secondary access point to the Kimberley East underground area which will enable the ramp up of production via lift infrastructure, increasing estimated haulage capacity from 8,000t to 30,000t per month.

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West Wits Mining Limited published this content on 20 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 April 2022 00:24:07 UTC.