WEST WITS MINING LIMITED West Wits Mining Limited announced the results of a revised Definitive Feasibility Study for its Phase 1 Qala Shallows of the Witwatersrand Basin Project ("WBP"). During the Phase One Qala Shallows Early Works Program of the Witwatersrand Basin Project, West Wits established a small-scale mining operation, with the intention of proving the designed mining method, and to put in place underground infrastructure, including the rehabilitation of the existing box-cut and decline, as well as the preparation of decline faces to develop the Life-of-Mine ("LOM") infrastructure. This allowed the West Wits team to expedite the production profile to allow for a quicker build-up to an increased steady-state production level.
As reported in the Company's Quarterly Report of March 2022, West Wits also engaged in a review of a restructured mining contractor agreement, as well as the procurement of refurbished equipment and a reliable underground mining equipment fleet. This process necessitated a slowdown and ultimately a pause of operations at the Qala Shallows Project. The time was utilised to: · renegotiate the mining contract with Modi Mining (Pty) Ltd. ("the Contractor") from a cost- plus contract to a production rate-based contract to drive contractor efficiencies.
It was always envisaged that once the box cut and the decline had been rehabilitated and access to the underground reef was established, the Company would enter a re-measurable contract with the Contractor. enter a refurbishment period to secure new and reliable mining equipment. The refurbishment objectives have been met, and the plan is for the Contractor to re-establish on site in Fourth Quarter 2022.
develop an updated comprehensive initial mining plan for the first two years utilising new information gathered from having access to underground workings, the teams physical experience in the mine and updated survey information. This data has now been incorporated to update the LOM production profile by third-party mine engineering firm, Bara Consulting (Pty) Ltd. ("Bara").
