West  Wits  Mining  (ASX-­‐WWI)  

Overview  

West  Wits  Mining  ASX:WWI  is  an  Australian  gold  explorer  with  two  gold  projects  underway.  WWI’s  gold  producing  Witwatersand  
Basin  Project  in  South  Africa  which  holds  a  66.6%  stake  with  JV  partner  and  head  contractor  Elandiwave  PTY  Ltd  and  gold  exploring  
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Mt  Cecelia  &  Tambina  projects  in  the  21  century  Gold  Rush  area  of  Western  Australia.  West  Wits  current  trade  activities  over  the  
last  year  has  seen  a  trade  range  between  1.6c  and  3.3c.  Bid  1.8c  and  Ask  1.9c  as  of  writing.  

The  Witwatersrand  Basin  gold  deposit  is  the  largest  gold  deposit  in  the  world  and  has  produced  40%  of  the  worlds  gold.  Historically,  
the  Witwatersrand  Basin  has  produced  over  41m  ounces  of  gold  at  ~5gpt  from  6  conglomerate  reefs.  The  company  commenced  
mining  in  June  2017.  JORC  Resource  upgrade  update  is  expected  in  June  of  2018.  

Board  change  and  current  sitting  members  

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March  13  2018  the  company  advised  that  highly  qualified  Geologist  Dr  Andrew  Tunks  joins  the  WWI  board  as  its  Exploration  
Director  to  oversee  and  advise  the  company  on  its  exploration  activities  in  the  Witwatersand  Basin  of  South  Africa  and  the  Pilbara.  

Michael  Quinert  -­‐  Executive  Chairman  since  4/07  

Hulme  Scholes  -­‐  Non-­‐Executive  Director  since  3/11  

Daniel  Pretorius  -­‐  Non-­‐Executive  Director  since  8/07  

Vincent  Savage  -­‐    Non-­‐Executive  Director  since  10/11  

Peer  Comparison  

Company       ASX  Code   Market  Cap  @                            Gold  Resource         Market  Cap  /OZ  

            13/6/18  (A$m)                  (Moz)                    (A$/oz)  

Artemis  Resources     ARV     117.4         1.0       122  

De  Grey  Mining       DEG     61.9         1.2       51  

DGO  Gold       DGO     9.5         1.0       -­‐  

Kairos  Minerals       KAI     30.2         0.6       47  

Mirandi  Metals       MZN     21.4         -­‐       -­‐  

Orinco  Gold       OGX     76         0.5       149  

Stonewall  Resources     SWJ     28         5.1       6  

Venturex  Resources     VXR     47         -­‐       -­‐  

West  African  Resources     WAF     218         2.7       80  

West  Wits  Mining     WWI     13         3.3       4    

                                                                                                                                                        
Capital  Structure    
              Q4  2017      Q1-­‐Q3  

Shares  on  Issue                   718m    

Current  market  cap  undiluted  @1.8c                 $12.9m  

Options  of  various  prices  and  dates               54m  

Cash  on  hand  @May  2018                 $1.2m  

Enterprise  Value  (EV)                     $11.7m    

Estimated  expenses  Q4  2017                 $3.450m      

Receipts  from  customers  Q3  2017               $3.031m     $8.619m  

Exploration  and  evaluation  Q3  2017               $14k     $61k  

Production  costs  Q3  2017                 $3.573m     $7.772m  

Staff  costs  Q3  2017                   $121k     $242k  

Administration  and  Corporate  costs               $446k     $911k  

Interest  received                   $2k     2k  

Cash  flows  from  Investments  Activities  

Investing                     $201k     $301k  

Cash  flows  from  Financing                

Proceeds  from  issue  of  shares                   $2.340m  

Transaction  costs  from  issue  of  shares            

convertible  notes  or  options                     $98k  

Other                         $39k  

Director  Payments                   $106k  

Share  structure  
Top  20                           40%  

Board  and  Management                       10%  

                                                                                                                                              

Announcements  by  the  board  in  regards  to  shares  

In  April  Director  Michael  Quinert  obtained  227,264  additional  shares  on  market.  

In  April  Director  Andrew  Tunks  obtained  475,000  additional  shares  on  market.  

Project  information  
Witwatersand  South  Africa  

In   April   WWI   submitted   two   mining   permit   applications   to   the   regulator,   each   covering   five-­‐hectare   pit   operations   for   the  
Witwatersand  Basin  project.  Providing  there  are  no  delays  the  company  expects  this  to  increase  re  production  within  the  next  4-­‐
6   months.   The   grade   in   the   Main   and   South   Central   target   area   is   expected   to   be   materially   higher   than   what   is   being   extracted  
from  the  Kimberley  Central  open-­‐pit.  This  is  expected  to  increase  monthly  gold  production.  

On  the  15th  of  May  the  company  advised  that  its  application  for  mining  rights  was  accepted  for  processing  for  the  Witwatersand  
Basin  Project  with  a  decision  on  approval  expected  within  300  days.  This  will  enable  a  significant  scale  up  of  its  mining  operations  
at  several  sites  across  the  WBP  from  the  first  half  of  2019.  

WWI   has   demonstrable   evidence   that   it   has   the   capacity   to   meet   South   Africa’s   strict   regulations   on   the   environment   and  
community  groups  to  ensure  support  of  its  application.  

The  company  advised  that  production  at  the  Kimberley  Central  open-­‐pit  were  lower  than  the  target  range  due  to  extremely  heavy  
rainfall,  well  above  the  annual  average.  Weather  patterns  have  since  normalized  and  operations  are  back  within  the  desired  range.  

Currently  important  information  

The   company   advised   that   as   of   June   2017   that   open   pit   mining   commenced.   In   November   2017   advised   that   the   company   was  
delivering  free  cash  flow.  WWI  is  completing  an  update  of  work  on  the  Mineral  Resource  Estimate  for  the  Kimberley  Reef  on  the  
Historic  Rand  Lease  and  bringing  it  into  the  current  JORC  framework.    

Due  to  the  weather  restrictions  of  the  previous  March  April  period  the  bottleneck  at  the  processing  plant  has  left  approximately  
4,450t  of  ore  which  will  provide  additional  revenues  in  the  current  period.  

Witwatersands  Project  information  

Global  MRE  for  WBP  @  2g/t  cut-­‐off  

Catagory       Ore  Tonnes  (MT)       Grade  g/t  Au     Ounces  AU    

Measured       10.28       3.66       1,207,000  

Indicated         11.5       3.38       1,243,000  

Measured  &  Indicated     21.8       3.51       2,450,000  

Inferred         7.8       3.4       3,261,000  

 
                                                                                                                                          

April-­‐  May  Results:  

Catagory         Target  Range       Results  relative  to  target  range  

Grade  (g/t  Au)         2.0         1.6    

Ore  produced  (t)         25,000-­‐30,000       27,950  

Ore  processed  (t)         25,000-­‐30,000       21,385  

Gold  produced  (oz)         1,750-­‐2,100       1,035  

Average  cost  (US$/oz)       700-­‐1,000       1,550  

Net  cashflow  (A$)         350,000-­‐550,000       Materially  below  target  range  

Average  Monthly  Production  for  Sept  –  May  

Ore  Produced  (T)         15,350  

Ore  Cash  cost  -­‐  approx.  US$/T     50  

Ounces  Au         805  

Gold  Cash  cost  -­‐  approx.  US$/oz     1,000  

Net  Cash  Proceeds1  (AUD)       160,000  

Tambina  Project  Western  Australia  

West  Wits  finding  from  its  second  site  visit  in  April:  

The   geology   team's   second   site   visit   to   the   Tambina   project   confirmed   gold   mineralization   at   surface   from   two   ferrous-­‐oxide  
horizons  located  in  the  center  and  south-­‐east  sections  of  the  tenement.  Ten  samples  of  20kg  bags  were  collected  with  all  returning  
visible  gold  in  pan  concentrates  comprising  particles  ranging  from  fine  to  <  1mm  and  occasional  grain  <  3mm  -­‐  various  sub-­‐samples  
have  been  selected  for  assay.  

Using  a  detector  nuggets  were  found  in  soil  nearby  and  within  the  two  horizons  with  the  largest  at  3.2g  but  remainder  less  than  
1g.  The  results  highlight  gold  mineralization  perhaps  more  extensive  than  initially  envisaged,  warranting  an  expanded  field  trip  to  
confirm  if  small  scale  mining  operations  can  restart.  

Next  steps  for  Tambina  

The  company  plans  to  proceed  with  sampling  extensions  to  known  gold  mineralization  and  incremental  ferruginous  horizons  
within  the  tenure  and  will  test  work  on  in-­‐field  gold  recovery  and  small-­‐scale  mining  methods.  

A  desktop  review  will  take  place  of  potential  sources  of  gold  and  any  potential  targets  in  and  around  the  three  mining  leases.  
Longer  term  plans  would  perhaps  be  drilling  of  the  ferrous-­‐oxide  layer  to  test  the  down  dip  extent  of  gold  mineralization.  

Mt  Cecelia  Project  Western  Australia  -­‐  Grant  still  pending  

The   company   is   still   waiting   on   the   W.A   mining   regulator   to   give   the   go   ahead   on   the   Mt   Cecelia   project   and   there   is   no   current  
time  when  this  has  been  advised  to  be  granted.  WWI's  geology  team  has  completed  its  high-­‐level  exploration  strategy  and  will  
implement  this  once  the  tenement  is  granted.  
                                                                                                                                        
Daily  chart  over  the  year  

Trading  on  support  under  low  volume  after  recently  creating  a  52-­‐week  low.  

 
 

A  significant  portion  of  the  demand  over  the  November  period  was  met  with  continued  supply  from  majority  stake  holder  TAG  
directly  after  the  announcement  of  investment  into  Pilbara  gold  projects.  

The  bulk  of  TAG’s  holdings  were  sold  on:  

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26  of  October  –  volume  4,999,833                                                                                                                                                                                                                                                                                                
th
13  of  November  –  volume  5,573,707                          
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14  of  November  –  volume  40,537,219                        
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15  of  November  –  volume  33,191,026                          
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16  of  November  –  volume  3,000,000  

This  considerable  divestment  of  TAG  from  WWI  certainly  hindered  growth  at  a  time  when  all  other  companies  announcing  Pilbara  
gold  experienced  astronomical  share  price  movement.                  

Subsequent  substantial  holder  Form  605  

Twynam  Agricultural  group  Pty  Ltd  (TAG)  

Shares  sold  at  market  –  90,657,483  =  $1,995,586  

Period  in  which  substantial  holder  divested  –  23/6/2017  –  16/11/2017  

                                                                                                                                        
 

Previous  capital  raise  details,  investment  costs  and  cash  flow  sources  

Response  to  ASX  Appendix  5b  Query  –  14/5/2018  “The  positive  performance  of  the  Witwatersands  gold  Project  since  inception  
provides  us  with  reasonable  and  objective  grounds  to  conclude  that  the  Company  can  and  will  continue  to  manage  its  cash  flows  
to  meet  ongoing  requirements.  Certainly  as  with  any  mining  project  results  will  vary  from  month  to  month  but  overall  we  have  
reasonable   grounds   for   believing   WGP   and   other   open   cut   projects   identified   within   the   tenement   area   can   and   will   continue   to  
provide  strong  cash  flows.”  

Tambina   Project,   Western   Australia   –   100%   equity   interest   including   3   active   mining   leases   in   Tambina   Gold   Pty   Ltd-­‐   75,681,818  
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fully  paid  ordinary  shares  at  .022c  30  January  2018  and  17,000,000  unlisted  options  Exercise  price  of  .050c  Expiring  29  Jan  2023.    
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Capital  Raise  4  of  December  2017  –  Tranche  2  $185,000  before  cost  through  the  issue  of  8,409,091  fully  paid  ordinary  shares  at  
an  issue  price  of  .022c  to  sophisticated  investors  led  by  CPS  Capital.  

Capital  Raise  24th  of  November  2017  -­‐  Tranche  1  $315,000  before  cost  through  the  issue  of  14,318,181  fully  paid  ordinary  shares  
at  an  issue  price  of  .022c  to  sophisticated  investors  led  by  CPS  Capital.  
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Completion  of  Northern  Reserves  Pty  Ltd  Acquisition  and  Placement  52,000,000  fully  paid  ordinary  shares  at  .017c  15  November  
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2017  and  10,000,000  unlisted  options  Exercise  price  of  .050c  Expiring  14  November  2020.  

Capital  Raise  2nd  of  November  2017  -­‐  $750,000  before  cost  through  the  issue  of  44,117,647  fully  paid  ordinary  shares  at  an  issue  
price  of  .017c  to  sophisticated  investors  led  by  CPS  Capital.  

Mt  Cecelia  Project,  Pilbara,  Western  Australia  –  Acquisition  of  100%  equity  interest  in  Northern  Reserves  Pty  Ltd  –  3,000,000  fully  
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paid  ordinary  shares  at  .017c  –  26  October  2017  

Top  5  Shareholders  (IRESS)  31/5/18  

DRDGOLD  Ltd           47,812,500         6.66%                                                                      

Debt  Management  Asia  Corporation     25,292,417     3.52%                              
Michael  Quinert                                        18,962,960     2.64%                                  
Trevor  Neale           17,850,330     2.49%                              
Vincent  Savage           14,194,231     1.98%  

While   all   due   care   and   attention   was   taken   in   the   creation   of   this   research   report,   please   verify   all   details   against  
announcements  released  by  the  company.  

Company  review  completed  by  Petegree  Research.  

No  money  or  payment  of  any  kind  was  accepted  in  the  creation  of  this  research  note  and  the  company  was  not  consulted  or  informed  of  this  research  
note  before  being  published.  

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