WIA Gold Spends US$9.3M Now to Keep 7Mtpa Expansion Door Open at Kokoseb
Key Takeaways
- SENET's engineering review identified design provisions that preserve a pathway to expand Kokoseb's process plant throughput from the DFS basis of 5.25Mtpa to approximately 7.0Mtpa without altering the existing mine plan or Ore Reserve estimate.
- The recommended provisions carry a preliminary cost estimate of US$9.3 million — roughly 2% of the US$475 million DFS pre-production capital cost — and are classified as an AACE Class 4 estimate to be refined through detailed engineering.
- A preliminary review of the DFS mine schedule indicates it could supply a 7Mtpa plant without modification, as existing ore delivery already generates significant medium-grade stockpile accumulation over the mine life.
- The expansion provisions are not incorporated into DFS economics, and no update to project financials has been undertaken — the DFS metrics including a US$1.2 billion post-tax NPV5%, 41% IRR, and 1.8-year payback remain unchanged.
- First gold at Kokoseb remains targeted for Q4 2028, underpinned by an indicative US$360 million senior secured debt facility plus US$15 million equity subscription agreed with Sprott Resource Lending Corp.
Kokoseb process plant engineered with an eye on growth
Wia Gold has completed a targeted engineering review of its Kokoseb Gold Project process plant, identifying a series of design provisions that preserve a pathway to expand throughput from the definitive feasibility study (DFS) basis of 5.25Mtpa to approximately 7.0Mtpa. The review was commissioned following completion of the DFS announced on 10 August 2026 and was carried out by SENET, a DRA Global Group company.
The timing of this decision is deliberate. Embedding expansion-enabling provisions now, during the front-end engineering phase, avoids the significantly greater cost and operational disruption of retrofitting a plant already in production. Any potential future expansion to approximately 7.0Mtpa remains theoretical and conceptual only at this stage, and the provisions do not alter the DFS mine plan, Ore Reserve estimate, or development strategy.
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What the engineering review found
The review focused on identifying throughput constraints that would be difficult or costly to expand incrementally after commissioning. The grinding circuit was identified as the primary constraint. SENET recommended increasing the installed power for both the SAG Mill and Ball Mill from 12MW to 15MW, alongside slightly increasing the dimensions of both mills.
Other recommended provisions include:
- Increased pre-leach and tailings thickener diameters
- Increased cyclone distributor capacity, to allow for future installation of additional cyclones
- Space allocation for future leach and CIP circuit expansion
- Increased conveyor and pump design allowances
- Space allocation for additional filtration and utility infrastructure
- Design provisions to accommodate future installation of additional process equipment where required
The review concluded that the majority of these provisions comprise equipment sizing adjustments, layout allowances, structural provisions, and infrastructure capacity enhancements, rather than the installation of substantial additional processing equipment upfront.
Henk Diederichs, Managing Director & CEO
“The engineering review has identified a number of design provisions that can be incorporated to preserve a capital-efficient pathway to expansion optionality. This allows us to retain the option to expand throughput, avoiding the greater cost and disruption of retrofitting an operating plant. Importantly, these expansion-enabling provisions do not alter the DFS mine plan, Ore Reserve estimate or development strategy announced in August 2026. Rather, they are intended to preserve flexibility for expansion opportunities that may be evaluated as Kokoseb advances.”
A US$9.3m investment to keep the door open
SENET’s preliminary assessment estimates the recommended provisions would increase the total process plant capital cost by approximately US$9.3 million, representing roughly a 2% increase on the US$475 million DFS pre-production capital cost estimate. The estimate has been prepared to an AACE Class 4 level and will be refined through the detailed engineering process.
Critically, a preliminary review of the DFS mine schedule indicates it could supply a 7Mtpa plant without modification to the underlying mining schedule. The DFS mine schedule already delivers excess ore, resulting in significant accumulation of medium-grade ore stockpiles over the mine life. No changes to mining costs, Ore Reserves, or production schedules have been considered as part of this review.
| Metric | DFS Basis | With Expansion Provisions | Notes |
|---|---|---|---|
| Plant throughput | 5.25Mtpa | ~7.0Mtpa (theoretical) | Subject to further study |
| Pre-production capex | US$475m | US$475m + US$9.3m | Provisions not in DFS economics |
| Capital cost increase | — | ~2% | AACE Class 4 estimate |
| Mine schedule modification needed | — | None (preliminary review) | Ore stockpile supports higher throughput |
The recommended provisions are not incorporated into the DFS economic analysis and no update to the DFS project economics has been undertaken as part of this review.
Understanding expansion optionality in mining projects
“Expansion optionality” in a mining context refers to the ability to increase production capacity in the future without having to redesign or significantly disrupt an existing operation. For retail investors, the concept is straightforward: it is far cheaper to size a piece of equipment slightly larger during construction than to replace it mid-operation.
Retrofitting an operating plant carries a threefold penalty: production interruption, higher capital cost, and increased execution risk. The front-end engineering phase, by contrast, is the lowest-cost point at which to embed these provisions. Importantly, preserving optionality is not a commitment to expand. Any actual increase in throughput beyond the 5.25Mtpa DFS basis would require further engineering studies, updated economic evaluations, regulatory approvals, market assessment, funding availability, and Board approval.
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Next steps and the road to first gold
SENET has been instructed to incorporate the selected expansion-enabling provisions into front-end engineering activities. In parallel, Kokoseb’s water and power supply infrastructure are currently being reviewed to ensure those services are adequately sized to support a potential future plant expansion.
The DFS metrics underpinning the project remain unchanged from the 10 August 2026 announcement. Those figures establish the foundation on which the project is advancing:
- First gold targeted: Q4 2028
- DFS post-tax NPV5%: US$1.2 billion (A$1.7 billion)
- Post-tax IRR: 41% | Payback period: 1.8 years
- Average production: approximately 150,000oz per annum over the first 10 years
- Indicative US$360 million senior secured debt facility plus US$15 million equity subscription agreed with Sprott Resource Lending Corp.
These metrics reflect the existing DFS and are not updated by the current announcement. The incorporation of expansion provisions does not constitute a decision to increase plant throughput, nor does it modify the DFS mine plan, Ore Reserve estimate, production profile, or project development strategy.
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