West Wits Mining keeps 200,000 oz plan alive despite study blip

West Wits Mining is pressing ahead with plans to increase gold production from its Witwatersrand Basin Project to 200,000 ounces a year despite being unable to publish a scoping study on the expansion. Shares in the Australian-listed company fell 14.9% last week (August 27) after it halted its Project 200 study following discussions with the Australian Securities Exchange. West Wits shares closed at A$0.41 today, down 15.5% in a week.

Berenberg Bank said the problem with the study was its use of a high proportion of inferred mineral resources. Less economic confidence is attached to inferred resources compared to measured resources, which is the highest level of confidence.

West Wits’ annual report, published today, shows the company nevertheless considers the results encouraging enough to continue work on Project 200. “The company views the results of the scoping study as positive and as meeting its internal objectives, which were predominantly to enable a decision on the merits of progressing Project 200 into the pre-feasibility stage, The company intends to continue to progress Project 200 and the development of the WBP through to the next level of studies.” It said.

The study assessed a 35-year mine plan for its broader Witwatersrand Basin Project (WBP), including options for a standalone processing plant, third-party toll treatment and bringing additional WBP ore sources into production.