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WEST Wits Mining improved development at its Qala Shallows gold mine in the September quarter, although the amount of gold recovered fell as the project builds towards full production.
The Australian-listed miner said underground development increased from 73 metres in July to 183m in August and a record 200m in September. The faster pace reflected more available working areas, better ground conditions, and a larger mining fleet.
This work involves digging the tunnels needed to reach and open up areas that can later be mined for gold.
However, gold recovered during the quarter fell to 112 ounces from 227 oz in the June quarter. West Wits said the gold currently being produced comes from ore removed while the mine is being developed, rather than from full-scale mining.
The company plans to start mining prepared gold-bearing areas from February 2027, marking the move to primary production. It expects to produce 10,000 oz to 15,000noz in 2027, rising to 42,500 oz in 2028 and 70,000 oz in 2029.
Work above ground is also progressing, with infrastructure 61% complete at the end of September compared with 45% at the end of June.
West Wits received a second R236m loan drawdown after the quarter end. It has now drawn R575m of its R875m senior loan facility from Absa and Nedbank, leaving R300m available.
Commercial production is targeted for the fourth quarter of 2027, with production of 70,000 oz a year planned for the first quarter of 2029.
Qala Shallows made headlines in 2025 as South Africa’s first new underground gold mine in 15 years. West Wits brought its first gold ore to surface in October that year and poured its first gold in March 2026.
West Wits shares opened at A$0.318 on Tuesday and were trading at A$0.323 later in the session, up 2.5% from Monday’s close of A$0.315.