West Wits has secured a key tenement for South African gold mine expansion

The company unveiled its money shot with a definitive feasibility study in July this year. It pointed to a net present value of US$500 million (A$755 million) and an internal rate of return of 81 per cent presenting the kind of financials that most junior miners dream of. Adding to its credentials, Qala Shallows already has the bones of a mine in place with an adit, a decline and a shaft ready to be used, giving West Wits a rare jump-start.

The operation is forecast to pump out around 70,000 ounces of gold every year for 12 straight years, spinning off an enormous US$983 million (A$1.5 billion) in post-tax free cashflow based on a conservative US$2850-ounce gold price.

The Witwatersrand Basin has minted mining legends for more than a century. The gold enriched basin is a world-class gold-mining province holding the world’s largest known gold reserves having produced over 1.5 billion ounces of gold since the early 1900s.

West Wits now looks poised to script its own mining legend. If and when this project hits full stride, the forecasts suggest it will be one of the biggest positive stories the region has seen in decades – a genuine reinvigoration of the South African gold-mining story built on modern standards, local benefit and long-term vision.

With funding, infrastructure and momentum now all in place, its long-life Witwatersrand dream is rapidly becoming a reality.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au