Wia Gold has unveiled a maiden 1.95-million-ounce Probable Ore Reserve for its Kokoseb gold project in Namibia, with a new Definitive Feasibility Study putting the cost of developing the mine at US$475 million and giving it a post-tax net present value of US$1.2 billion.
The DFS, released on Monday, marks Kokoseb’s transition from an advanced exploration project towards mine development, establishing for the first time an economically mineable reserve and setting out a 14-year open-pit operation expected to produce 1.836 million ounces of gold.
The maiden reserve comprises 69.8 million tonnes grading 0.87 grams per tonne of gold and was calculated using a gold price of US$2,600 per ounce, substantially below the US$3,600 per ounce price Wia used for its base-case financial modelling.
Kokoseb’s broader Mineral Resource now stands at 3.78 million ounces, meaning the DFS has converted a significant portion of the identified resource into a Probable Ore Reserve after taking mining, metallurgical, economic, environmental, legal, social and other modifying factors into account.
The proposed mine would process 5.25 million tonnes of ore annually and produce an average of 161,000 ounces of gold per year during its first five years, falling slightly to an average of 150,000 ounces per year over the first decade and 131,000 ounces over the full 14-year mine life.
At Wia’s base-case gold price of US$3,600 an ounce, the project generates a post-tax net present value, discounted at 5%, of US$1.214 billion, a post-tax internal rate of return of 41% and a payback period of about 21 months.
The economics improve substantially at higher gold prices. Using Wia’s stated July 2026 average spot gold price of US$4,075 an ounce, the post-tax NPV increases to US$1.577 billion, the internal rate of return rises to 49% and the payback period falls to 17 months.
Life-of-mine all-in sustaining costs are estimated at US$1,696 an ounce under the base-case assumptions.
Wia managing director and chief executive Henk Diederichs said the DFS represented a major milestone for Kokoseb, which has advanced rapidly since its discovery just over five years ago.
“Completion of the DFS marks a major milestone for Wia. In just over five years, Kokoseb has advanced from discovery to a development-ready gold project and one of Africa’s most compelling undeveloped gold projects,” Diederichs said.
“The DFS delivers a maiden Ore Reserve, a robust mine plan and outstanding financial returns, providing a strong foundation for development.”
The US$475 million pre-production capital estimate includes US$302.6 million in direct construction costs, US$59.1 million in indirect construction costs, US$46.1 million in owners’ costs, US$40.2 million in contingency and US$26.8 million for mining mobilisation and pre-production activities.
About US$50 million of the capital budget has been deliberately allocated to water and electricity infrastructure with capacity exceeding the requirements of the initial operation, giving Wia room to expand Kokoseb later.
The company plans to spend about US$34 million to develop a borefield that draws groundwater from the Omaruru Alluvial Plains palaeochannel aquifer. In comparison, another US$16 million has been allocated to upgrading the planned electricity connection from 66kV to 132kV.
Power would be supplied by NamPower from the existing Omburu substation, with Wia saying studies have confirmed sufficient capacity to supply the planned operation.
The mine would use conventional drill, blast, truck-and-shovel open-pit mining, while ore would be treated through a conventional gravity, leach, and carbon-in-pulp processing plant.
Metallurgical testing carried out during 2025 and 2026 found the Kokoseb ore to be free-milling, with an average gold recovery estimated at 90.4% over the life of the mine.
The DFS covers only the open-pit operation, leaving further development potential outside the current mine plan.
Wia has already defined a maiden underground Mineral Resource as part of the expanded 3.78-million-ounce resource and said it would now begin studies into both underground development and increasing processing capacity beyond the initial 5.25 million tonnes a year.
The additional water and electricity capacity included in the initial US$475 million investment has been designed in part to support potential expansions without requiring the supporting infrastructure to be rebuilt.
Alongside the DFS, Wia has also moved to establish a financing pathway for development, agreeing indicative terms with Sprott Resource Lending Corp for a proposed US$360 million senior secured debt facility.
Sprott has also indicated that it would subscribe for US$15 million in any future Wia equity raising, taking the potential package to US$375 million.
The funding is not yet committed. The proposed facility remains subject to detailed due diligence, definitive documentation, final Sprott investment committee approval and Wia obtaining the required Mining Licence and Environmental Clearance Certificate.
Wia also had A$119 million in cash at the end of June, giving it additional financial capacity as it advances the project.
Diederichs said the proposed Sprott financing represented a strong endorsement of Kokoseb and the work completed to move it towards development.
“The indicative terms agreed with Sprott for a proposed project financing facility, comprising US$360 million debt, and a US$15 million subscription, represent an extremely strong endorsement of both the quality of the Project and the work completed to date,” he said.
Regulatory approvals now form part of the critical path towards development.
Wia lodged its Mining Licence application in October 2025 and submitted its Environmental and Social Impact Assessment in March this year, with both the Mining Licence and environmental clearance anticipated during the second half of 2026.
The company is advancing detailed engineering, contracting preparations, long-lead equipment procurement and final site investigations while the permitting and financing processes continue.
Kokoseb is located about 320 kilometres by road northwest of Windhoek, in the Erongo Region, and is being developed in partnership with the state-owned Epangelo Mining Company.
The new DFS gives Wia its first reserve and a defined economic case for building Kokoseb, while the larger 3.78-million-ounce resource, underground potential and infrastructure being installed for future expansion leave scope for the project to grow beyond the 14-year open-pit mine currently contemplated.
