West Wits Mining Gets R236M Debt Drawdown, Fully Funding Qala Shallows Gold Mine
Key Takeaways
- West Wits received a second senior debt drawdown of R236M (~A$21M), taking total drawn to R575M of the R875M Absa / Nedbank facility and leaving Qala Shallows fully funded to steady-state production.
- Underground development hit a record 200m in September 2026, up from 73m in July, with cumulative development at 1,150m.
- Stoping, the source of primary production, is scheduled from February 2027, with commercial production targeted for Q4 2027.
- Production is forecast to climb from 10,000-15,000oz in 2027 to 42,500oz in 2028 and 70,000oz in 2029, based on a DFS that includes inferred mineral resources.
- R297M of contingency funding sits behind the senior debt across working capital, cost overrun debt and cost overrun equity facilities, while surface infrastructure is 61% complete and bulk power is due in early 2027.
Qala Shallows fully funded to steady-state production after R236M drawdown
West Wits Mining has received the second senior debt drawdown of R236M (~A$21M) from its Absa / Nedbank Senior Debt Facility, and says the Qala Shallows Gold Project is now fully funded to steady-state production. The funds arrived after cost-to-complete and covenant testing, which the company says further de-risks the path to steady-state production.
The update, dated 7 October 2026, also confirmed a record 200m of underground development in September 2026, with key project milestones remaining on schedule.
For investors, the message is straightforward. Funding questions have been addressed while development rates build, which shifts attention to whether the mine can deliver on its operational timetable.
Rudi Deysel, CEO & Managing Director
“We have advanced the three things that will drive production at Qala Shallows: underground access, surface infrastructure and funding…”
The headline points from the update:
- 1,150m of underground development completed by the end of September 2026
- 61% of surface infrastructure complete at the end of September 2026
- Stoping (the mining of ore from the main orebody) scheduled from February 2027
When big ASX news breaks, our subscribers know first
Debt facility and funding buffers explained
The numbers behind the “fully funded” claim matter, so here is how the facility stacks up.
Senior debt facility breakdown
The company completed the conditions precedent, including cost-to-complete and covenant testing, for the second drawdown. The funds were received into its local subsidiary, West Wits MLI (Pty) Ltd.
| Item | Amount (ZAR) | Approx. A$ | Status |
|---|---|---|---|
| Absa and Nedbank senior debt facility (total) | R875M | ~A$76M | Total facility |
| Second drawdown | R236M | ~A$21M | Received |
| Total drawn | R575M | ~A$50M | Drawn to date |
| Remaining available | R300M | ~A$26M | Available under the facility |
Additional contingency facilities
Beyond the senior facility, the company points to further funding flexibility:
- Undrawn Working Capital Facility of R150M (~A$13M)
- Cost Overrun Debt Facility of R90M (~A$8M) with its senior lenders
- Cost Overrun Equity Facility of R57M (~A$5M), held by the company
In September 2026, representatives of Absa and Nedbank visited Qala Shallows and inspected underground development.
Development ramp-up: underground and surface progress
Underground development nearly triples
Monthly advance rates rose steadily through the September quarter:
- 73m in July 2026
- 183m in August 2026
- 200m in September 2026, a record
Management attributes the increase to greater face availability and improved underground fleet utilisation. The company is targeting 600m per month in 2027, approximately three times September’s record rate.
Cumulative development reached 1,150m, made up of 513m of reef development and 637m of waste development. Reef development goes through ore-bearing rock, while waste development is the tunnelling needed to reach it.
The site workforce grew more than ten-fold to 507 people as of 30 September 2026, up from 45 on 31 May 2025.
The 1 West Decline holed into the historic 2 Level area on 21 May 2026. This provides access to ore tonnes in unmined stopes with established underground infrastructure, which is currently being developed for trackless equipment, with stoping scheduled from February 2027.
Surface infrastructure and power
Surface infrastructure is 61% complete. The haulage road is 100% complete and handed over, while the pollution control dam and permanent ore handling facility, both key to environmental compliance, are at an advanced stage.
The 2.5MW permanent backup generators are scheduled for commissioning in October 2026. The bulk power connection is planned for commissioning in early 2027, with technical adjudication by City Power the next step.
How development ore leads to primary production
Not all gold is equal in a mine’s early life. Gold produced to date has come from processing on-reef development ore, which is a by-product of establishing the mine rather than its primary production source.
Primary production comes from stoping, where ore is mined from the planned stopes once access is established. The company says near-term output reflects the project’s development stage, and the step-up in production is tied to the start of stoping and the completion of surface infrastructure and bulk power.
The development ramp-up is building the capacity required for steady-state ore production of ~840,000t per annum for 70,000oz Au.
The next major ASX story will hit our subscribers first
Milestones and production outlook
The company says Qala Shallows remains on schedule against its key milestones.
| Milestone / Year | Target |
|---|---|
| Q3 2027 | Completion of critical surface infrastructure |
| Q4 2027 | Commercial production |
| Q1 2029 | 70,000oz p.a. steady-state production rate |
Annual recovered gold production is forecast to ramp up from 10,000oz to 15,000oz in 2027 to 42,500oz in 2028 and 70,000oz in 2029. The outlook is based on the 23 July 2025 DFS update, and the DFS and any production target under it contain inferred mineral resources.
That ramp is steep. It shows how heavily the outlook leans on stoping starting on time and on surface infrastructure and bulk power being completed.
Safety and next steps
In June 2026, a mud rush incident at Qala Shallows resulted in the death of a colleague. The company extended its deepest condolences to his family, friends and colleagues.
Since then, ground and water management has been a central focus underground. A total of 56 crew self-stoppages were recorded between July and September 2026, with each area made safe and signed off before work resumed.
The company held its CEO Safety Day in August 2026, where the workforce signed the Zero Harm Pledge. Head of Operations Sephela Makete Thema also represented West Wits at Minerals Council South Africa’s Mud Rush Day of Learning.
On next steps, the company is finalising the commissioning of the exploration program for the Bird Reef Central (BRC) Uranium and Gold project, with details to be provided when available. It is also reviewing the Project Scoping Study, aiming to enhance the portion of Measured and Indicated Mineral Resource Estimates in the production target to meet ASX requirements.
September quarterly results are being finalised and will be released with the quarterly activities report in due course.
Get ASX Gold News Before the Market Moves
Get FREE breaking ASX gold alerts delivered within minutes of release, with in-depth analysis and the full announcement included. Join 30,000+ investors already using Big News Blast to stay ahead of the market. Click the “Free Alerts” button today and never miss the next major gold development.