West Wits Mines First New Underground Gold Operation in South Africa in 15 Years
West Wits Mining has begun ramping up production at its Qala Shallows underground mine, the first new deep-level gold mine in South Africa for five decades. Concurrently, Redcastle Resources released high-grade drill results supporting a larger pit expansion at its Queen Alexandra project.
West Wits Mining (ASX:WWI) is currently ramping up operations at its Qala Shallows underground mine in South Africa, marking the first new deep-level gold project launched in the country's largest mining basin in 15 years. The mine sits within the Witwatersrand Basin, a region geologists identify as having produced roughly one-fifth of all historical global gold output. Project management indicates this area still contains significant untapped resources. Management estimates that at a gold price of US$2850 per ounce, the project will generate US$2.7 billion in revenue and free cash flow totaling US$983 million over 17 years. Financial models show a post-tax net present value of US$500 million and an internal rate of return of 81% under this price scenario, remaining robust at 35% even if gold drops to US$1850. Development commenced in July 2025 with financial backing from Absa and Nedbank totaling US$97 million, following the pouring of initial metal in March.
Separately, Redcastle Resources (ASX:RC1) reported assay results confirming high-grade gold potential at its Queen Alexandra deposit in Western Australia. The latest batch of 127 grade-control holes produced intersections averaging over two meters long with grades exceeding 35 grams per tonne at specific locations. Approximately 68% of these test holes returned at least one gold intersection averaging 2 grams per tonne or better. Chairman Dr Ray Shaw stated the data strengthens confidence in a planned pit expansion.
