The West Wits Mining Limited (ASX: WWI) share price is tumbling in late morning trade, down 12% at time of writing.
Below we take a look at the ASX gold explorer's latest market announcement.
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What did the gold explorer report?
West Wits' share price is falling today despite the company reporting "strong results" from the Definitive Feasibility Study (DFS) at Qala Shallows, stage 1 of its Witwatersrand Basin Project in South Africa.
This covers the first of 5 planned stages of development the company has at the Witwatersrand Basin Project.
West Wits reported a "substantial" Maiden Ore Reserve of 3MT at 2.88 grams of gold per tonne for 278,000 ounces. This includes a Proved Ore Reserve of 830,000t at 3.13g/t for 84,000oz.
The Life-of-Mine (LOM) for Qala Shallows is estimated at 17 years, with All In Sustaining Cost (AISC) estimated at US$1,144/oz of gold. The company forecast a 5.5-year payback period for the US$50 million peak funding requirement.
West Wits said it plans to commence development of its Qala Shallows Project this month. The stage 1 project represents some 40% of the total planned production and potential of the Witwatersrand Basin Project.
What did management say?
Commenting on the results of the DFS, West Wits managing director, Jac van Heerden said:
The completion of the DFS is a key achievement in West Wit's journey of transforming from an exploration operation to a robust, mid-tier gold production company. Historically, the Witwatersrand Basin produced more than 35% of total global gold production and here we stand today, with positive DFS results, at the dawn of a gold revival in the same area.
West Wits share price snapshot
The West Wits share price is up 195% over the past 12 months, well outpacing the 24% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.
2021 has seen the West Wits share price struggle, with shares down 26% year-to-date.
