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.
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.
