Wia Gold has begun assembling a team and preparing construction contracts for the US$475 million Kokoseb gold project in Namibia, as the Australian-listed company targets the start of early works in the first half of 2027.
The company said in its September-quarter activities report that its board had approved execution readiness activities following the completion of the definitive feasibility study in August, marking a shift from project evaluation towards preparations for construction.
Wia is recruiting key personnel to support its Project Director, finalising its construction execution and contracting strategy, and advancing front-end engineering and design ahead of the proposed development.
The owner’s team will represent Wia during project implementation, overseeing the coordination of engineering, procurement and construction activities as the company prepares to develop the mine.
Although Wia has confirmed that recruitment is underway, it has not disclosed the number of positions being filled, the identities of the additional personnel or how many jobs will be allocated to Namibians.
The construction preparations include identifying and planning the procurement of equipment with long manufacturing and delivery periods, which could affect the project’s overall development schedule.
Engineering work is also continuing on the proposed processing plant, with Wia examining provisions that could accommodate an eventual increase in annual throughput from 5.25 million tonnes to approximately seven million tonnes.
An engineering review by SENET, part of the DRA Global Group, recommended modifications to the initial plant design that would make a future expansion easier to implement.
These include increasing installed power on the semi-autogenous grinding and ball mills from 12 megawatts to 15 megawatts, installing larger thickeners and allowing additional capacity for conveyors, pumps and other processing equipment.
The modifications would cost an estimated US$9.3 million, representing approximately 2% of the project’s estimated US$475 million pre-production capital requirement.
Wia emphasised that the modifications do not constitute a decision to expand the processing plant, with any future increase in capacity requiring further engineering studies, economic evaluations, regulatory approvals, funding and board approval.
The company has also allocated US$50 million of the proposed construction budget to strategic water and electricity infrastructure, including US$34 million for developing a borefield in the Omaruru Alluvial Plains and US$16 million for upgrading the proposed electricity connection to 132 kilovolts.
These investments are intended to provide sufficient infrastructure capacity for the initial mining operation while allowing flexibility for possible future expansion.
The definitive feasibility study envisages a 14-year open-pit gold mine producing approximately 1.84 million ounces over its operating life.
Average annual production is estimated at 161,000 ounces during the first five years and 150,000 ounces during the first decade, with a processing plant designed to handle 5.25 million tonnes of ore annually.
The project has a maiden probable ore reserve of 69.8 million tonnes grading 0.87 grams of gold per tonne, containing approximately 1.95 million ounces.
At an assumed gold price of US$3,600 per ounce, the feasibility study estimates a post-tax net present value of US$1.21 billion, an internal rate of return of 41% and a capital payback period of 21 months.
While construction preparations are progressing, Wia is working to finalise a proposed US$360 million senior secured debt facility with Sprott Resource Lending Corporation.
The indicative financing arrangement also provides for Sprott to subscribe US$15 million in a future equity raising.
Wia completed an A$125 million institutional placement during September and reported cash holdings of A$229.2 million and no debt at the end of the quarter.
The company expects its existing cash, the completed placement and the proposed Sprott facility to provide sufficient funding to develop Kokoseb through to first gold production.
However, financial close remains subject to due diligence, final documentation, investment committee approval and the granting of the project’s mining licence and environmental clearance certificate.
The mining licence application was submitted in October 2025, followed by the Environmental and Social Impact Assessment in March 2026.
Wia expects both approvals before the end of 2026, while environmental assessments for infrastructure outside the proposed mine site are also being prepared.
Alongside construction planning, six diamond drilling rigs remain active at Kokoseb as the company investigates the potential for underground resources beneath the proposed open pit.
Recent drilling has reinforced the possibility of additional gold mineralisation at depth, although underground mining does not form part of the current feasibility study’s production plan.
The company’s updated mineral resource estimate stands at 3.78 million ounces, including an initial underground inferred resource of 560,000 ounces.
Further drilling is planned over the next six to 12 months to assess whether additional underground resources can be established.
Subject to the completion of financing and receipt of the necessary approvals, Wia expects early construction works to begin during the first half of 2027, with first gold production targeted for the fourth quarter of 2028.
