Wia Gold (ASX: WIA) extends Kokoseb underground discovery as US$1.2bn gold project advances

Wia Gold Limited (ASX: WIA), the Australian gold exploration and development company advancing the Kokoseb Gold Project in Namibia, has reported assays from 33 diamond drillholes totalling 18,476 metres, extending the geological interpretation of several underground mineralised zones beneath its proposed open-pit mine. The 13 October 2026 results include an intersection of 15.5 metres grading 6.53 grams per tonne gold, with a higher-grade interval of 3 metres at 27.93 grams per tonne. The results strengthen the exploration case around an existing 3.78-million-ounce Mineral Resource, including a maiden underground Inferred Resource of approximately 560,000 ounces. The discovery creates potential to expand the project’s future mining options, although additional drilling, resource estimation and economic studies are necessary before any underground development can be included in a mine plan.

What do Wia Gold’s latest high-grade Kokoseb drilling results establish about underground mineralisation?

The strongest result in the latest programme came from drillhole KDD191, which intersected 15.5 metres grading 6.53 grams per tonne gold from 499.5 metres downhole. The interval included 3 metres grading 27.93 grams per tonne, demonstrating a locally high concentration of gold within the broader mineralised zone. Another result from the Central Underground area returned 20 metres grading 2.70 grams per tonne from 544 metres, including 3 metres grading 5.39 grams per tonne. These intersections provide additional quantitative information about the location and distribution of gold below the planned open pit.

Drilling also returned encouraging results from the Intermediate and Deep High-Grade targets. Reported intersections included 29 metres grading 1.91 grams per tonne gold from 755 metres and 6 metres grading 6.06 grams per tonne from 623 metres. At the Southern Underground target, a separate hole intersected 18 metres grading 2.78 grams per tonne gold from 606 metres. The distribution of mineralisation across several target areas supports continued exploration, but the results do not establish that all the zones form one continuous economically mineable deposit.

The reported intervals are downhole lengths rather than confirmed true widths. Wia Gold has indicated that the geometry of drilling means true mineralised thickness may be approximately half the downhole intervals in relevant areas. This qualification is important because mine design and future resource estimation depend on the actual width and orientation of mineralised structures. A 15.5-metre downhole intersection should not automatically be interpreted as a 15.5-metre-wide mining zone.

The programme has been designed to investigate both the continuity of known mineralisation and potential extensions beyond the current resource model. Infill drilling helps strengthen geological confidence within established zones, while step-out drilling tests whether mineralisation continues into less explored ground. The latest announcement provides evidence relevant to both objectives. Nevertheless, a formal resource update will be necessary before the additional information can be translated into revised contained-gold figures.

How far has the Central Underground target extended beneath the Kokoseb open-pit design?

Wia Gold reported that drilling extended the Central Underground Exploration Target approximately 170 metres toward the northeast. Additional holes confirmed mineralisation along the southwest-plunging portion of the system over approximately 300 metres. Together, the results strengthen the interpretation that the underground zone extends beyond the limits previously supported by detailed drilling. The company will need to determine whether that continuity can support a larger resource envelope.

The Central Underground area is particularly relevant because Wia Gold has already established an Inferred Mineral Resource beneath the planned open pit. New drilling within and around that resource could improve confidence in the geological model and identify additional material for future estimation. The company’s ongoing programme includes drilling at approximately 50-metre by 50-metre spacing in selected areas. This work is intended to provide more dependable information on the distribution of mineralisation across the underground targets.

Drilling is also continuing at the Southern Underground and Intermediate High-Grade areas, where mineralisation remains open in certain directions. The potential for additional mineralisation does not necessarily imply that it can all be mined using the same methods or infrastructure. Deeper zones may have different access, ventilation, ground support and development requirements. Their economic significance will depend on both grade and the cost of extracting the material.

The exploration programme is therefore examining a possible second stage of project development rather than replacing the existing open-pit plan. Kokoseb’s completed definitive feasibility study is based principally on an open-pit operation with defined infrastructure and processing assumptions. Any underground development would require separate technical work to assess how it could fit with those facilities. The relationship between open-pit production and possible underground mining will become clearer as additional resource and engineering data are generated.

How does the 560,000-ounce underground resource compare with Kokoseb’s larger gold inventory?

Kokoseb’s reported Mineral Resource totals approximately 3.78 million ounces of gold. The open-pit component accounts for roughly 3.23 million ounces, while the maiden underground Inferred Resource contributes approximately 560,000 ounces. The underground component comprises about 7.9 million tonnes grading 2.2 grams per tonne gold. These figures demonstrate that an underground resource has already been estimated, although its current confidence classification is lower than that required for more detailed mine planning.

The underground resource represents approximately 15% of the project’s total reported contained gold. That proportion is meaningful because it identifies a material resource component that is not simply speculative exploration ground. However, Inferred resources cannot automatically be converted into Ore Reserves, and additional information is required to establish their economic viability. The company will need more drilling and appropriate modifying-factor assessments before determining whether any of the material can support a future underground mining operation.

Wia Gold has separately identified an Underground Exploration Target of approximately 10 million to 15 million tonnes grading between 2.0 and 2.5 grams per tonne gold. The target is additional to the existing underground Inferred Resource and represents a conceptual range based on current geological interpretation. It is not a Mineral Resource or an Ore Reserve, and there is insufficient exploration evidence to establish whether the stated range will be realised. The target should therefore remain distinct from the reported 3.78-million-ounce resource total.

If future drilling supports a larger resource, the company will still need to assess the economic implications of mining at greater depth. Higher-grade material may be attractive, but underground development requires additional capital and operating expenditure. Access development, ventilation, water management and mining productivity can strongly influence returns. A future resource increase would strengthen the project’s geological position without automatically proving that the additional ounces are economically recoverable.

What does Wia Gold’s August 2026 definitive feasibility study reveal about Kokoseb project economics?

Wia Gold completed a definitive feasibility study in August 2026 outlining a 14-year open-pit gold operation at Kokoseb. The study is underpinned by a maiden Probable Ore Reserve of approximately 69.8 million tonnes grading 0.87 grams per tonne gold, containing 1.95 million ounces. The proposed processing facility has a nameplate capacity of approximately 5.25 million tonnes per year. These assumptions support a defined mine development plan separate from the latest underground exploration results.

The feasibility study forecasts average gold production of approximately 161,000 ounces annually over the first five years and around 150,000 ounces annually during the first decade. Average production over the full 14-year mine life is estimated at approximately 131,000 ounces per year. These figures reflect the planned mining schedule and processing assumptions rather than actual production from an operating mine. Construction, commissioning and operational execution must occur before the forecasts can be realised.

At its base-case gold price assumption of US$3,600 per ounce, the study estimated a post-tax net present value at a 5% discount rate of approximately US$1.2 billion. It also reported a post-tax internal rate of return of 41% and an estimated capital payback period of 1.8 years. The forecast pre-production capital requirement is approximately US$475 million. These are modelled project economics based on specified assumptions, not realised cash flows or a guaranteed valuation attributable to shareholders.

The study’s economic outcomes are sensitive to the assumed gold price, operating costs, recovery rates, capital expenditure and schedule. A higher realised gold price could improve returns, while weaker prices or higher project costs could reduce them. Wia Gold has also presented a higher-value scenario using a stronger gold price assumption, but such scenarios should not be added together or treated as independently achieved value. The base-case study provides a framework for assessing the project while leaving important financing and construction risks unresolved.

Could underground mining extend Kokoseb’s 14-year mine life or increase annual gold production?

The existing development plan provides a potential open-pit production base, while the deeper mineralisation creates an opportunity to examine additional mining stages. Underground production could theoretically extend operations after portions of the open pit are exhausted or provide supplementary higher-grade feed if technically feasible. However, Wia Gold has not announced a completed underground feasibility study demonstrating the cost or timing of such an operation. Neither mine-life extension nor additional annual production can presently be quantified from the latest drilling.

The relationship between a large open-pit mine and potential underground mining can be complex. Mining below an open pit may require consideration of ground stability, access locations and interactions between surface and underground operations. Underground material may also have different processing characteristics that affect plant performance. A development option that appears attractive on grade alone may require substantial additional engineering before it can be included in an economic plan.

The potential use of existing processing infrastructure could be an advantage if underground material can be delivered at appropriate times and processed efficiently. Shared facilities may avoid constructing a completely separate processing plant, but they also create capacity constraints if the open-pit operation is already supplying the proposed plant at its planned rate. Mine scheduling would need to determine which material should be processed and when. The optimal outcome would depend on the contribution each source makes after mining and processing costs.

The next resource and technical studies will therefore need to address more than contained ounces. They must establish likely recoverable grades, mining widths, ground conditions and the development expenditure required. Additional mineralisation has the greatest economic relevance when it can improve the project’s cash flows after accounting for those requirements. The latest results support further investigation without establishing the final economic contribution of the underground targets.

How will Wia Gold fund the US$475 million Kokoseb development and obtain Namibian approvals?

Wia Gold has advanced financing discussions to support the planned mine development. The company has disclosed agreed indicative terms with Sprott Resource Lending Corporation for a financing package of approximately US$375 million, comprising a proposed US$360 million senior debt facility and US$15 million equity subscription. Those indicative arrangements provide a possible financing structure, but they should not be described as fully drawn or unconditional construction funding. Final documentation, satisfaction of conditions and other funding requirements remain relevant.

The proposed financing package would cover a substantial portion of the US$475 million estimated pre-production capital requirement if completed on the indicated terms. However, comparing the two figures does not establish a fully funded project because financing fees, working capital, contingencies and other sources of funding may affect the final requirement. The terms of debt financing can also influence shareholder returns through interest expenses, repayment schedules and restrictions on distributions. A definitive funding package will provide a clearer assessment of the balance between financial flexibility and project obligations.

Regulatory approvals are another essential component of the development timetable. Wia Gold has submitted a mining licence application and progressed environmental and social assessment work in Namibia. The company expects relevant permitting progress to support its intended development schedule, although approvals are decisions for the applicable authorities. Submission of documents and the existence of a completed feasibility study do not constitute a mining licence grant.

The company’s target is to begin site construction as the required approvals and financing allow, with first gold production envisaged for the fourth quarter of 2028. This is a management development target rather than a confirmed commercial production date. Changes to permitting, procurement, financing or construction conditions could affect the schedule. The timing of final approvals and committed funding will provide more concrete evidence of project readiness.

What do the latest Kokoseb results mean for Wia Gold’s development outlook and market expectations?

The October drilling demonstrates that Wia Gold continues to identify gold mineralisation beneath and beyond the areas already supported by the resource model. That creates the possibility of expanding the project’s resource inventory while the company advances an established open-pit development plan. The two activities can reinforce each other, provided geological growth does not distract from completing the permitting, financing and engineering work necessary for construction. The value of the new results will become clearer once they are incorporated into a revised resource assessment.

Investors evaluating Wia Gold must distinguish between the economic value described in the definitive feasibility study and the additional geological potential indicated by recent exploration. The US$1.2 billion base-case project net present value reflects the study’s defined assumptions and should not automatically be increased by the theoretical value of conceptual underground targets. Similarly, a high-grade drill intersection cannot be converted directly into mine revenue. Future work must establish how much additional mineralisation can be economically extracted and when.

Six diamond rigs remain active as the company advances infill and extension drilling. Additional results, resource updates and technical assessments could strengthen the development case, while progress on the mining licence and financing arrangements will determine whether the base-case project can move toward construction. The next substantial proof points are confirmation of relevant approvals, a binding financing structure and further resource confidence. Those developments would help determine whether Kokoseb can progress from an attractive feasibility model into a funded gold mine with credible longer-term underground expansion opportunities.

Key takeaways from Wia Gold’s October 2026 Kokoseb underground drilling results

• Wia Gold reported assays from 33 diamond holes totalling 18,476 metres.
• The strongest reported interval was 15.5 metres grading 6.53 grams per tonne gold.
• The Central Underground target has been extended approximately 170 metres northeast.
• Kokoseb’s total Mineral Resource is approximately 3.78 million ounces.
• The current underground Inferred Resource contains around 560,000 ounces.
• The separate 10-million to 15-million-tonne underground Exploration Target remains conceptual.
• The August feasibility study supports a planned 14-year open-pit operation.
• The project has a Probable Ore Reserve of approximately 1.95 million ounces.
• Base-case project net present value is approximately US$1.2 billion at a US$3,600-per-ounce gold assumption.
• Financing, Namibian approvals and additional underground resource work remain important milestones.