July 12, 2022

~ Wellex Group is pleased to announce that the Company has been granted the key permit following the Environmental Authorization for the development of the Shangoni Prospect from the Ministry of Mineral Resources & Energy, South Africa.

Mr Topman Ngonyama, Chief Executive Officer of Wellex Group, stated: “The approval of Shangoni Prospect marks a significant milestone in the Company’s efforts to usher a development of a new mine in the Giyani Greenstone Belt. We are excited to introduce the Shangoni Prospect into the development profile fueling development of a new mine by 2024 from the Gold, Zinc and Tungsten reserves at Muyexe. We shall continue to work closely with regulatory authorities, local communities, and all stakeholders to ensure safe and responsible development and mining at our ancestral land.”

Wellex is advancing the development of the Shangoni Prospect with the objective to commence production in the first quarter of 2024.

The Shangoni deposit is the only tungsten deposit of note in the Giyani Greenstone Belt and is situated approximately 5km from the border of the Kruger National Park and about 20km eastnortheast of Giyani town. Exploration demonstrated Scheelite mineralization is widespread on the prospect, but is best developed at Witkop where it consists of fine- to coarse-grained crystal disseminations of scheelite and more massive scheelite veinlets within altered, crenulated, biotite and biotite-tremolite schist (Furnell, 1986) and in cross-cutting pegmatite and quartz veins, which often tourmaline bearing.

Few companies investigated the prospect in the 1970s while Regison Mining attempted to exploit and concentrate the deposit between 1987-1991, but the erratic nature of the mineralisation and a lack of water for the plant at the time resulted in the  closure of the operation.