Pan African Resources Plc Operational Update
March 02 2018 - 1:00AM
UK Regulatory
TIDMPAF
Pan African Resources PLC
(Incorporated and registered in England and Wales under Companies Act 1985 with
registered number 3937466 on 25 February 2000)
AIM Code: PAF
JSE Code: PAN
ISIN: GB0004300496
("Pan African" or the "Company")
OPERATIONAL UPDATE
Further to the operational update released on 1 February 2018, Pan African is
pleased to provide further information on progress at the Fairview 11-block
Main Reef Complex ("MRC") orebody and the Barberton Tailings Retreatment Plant
("BTRP"), as well as updated guidance on the commencement of production from
the Elikhulu Tailings Retreatment Plant ("Elikhulu").
Barberton Mines - Fairview 11-block MRC orebody grades
The average head grade for the Barberton Mines complex, which includes the
Fairview, Sheba and Consort mines, has risen from an average of 8.7g/t during
July to December 2017 to 11.5g/t which was recorded in the February 2018
production month. This 32% increase in head grade is predominantly as a result
of mining high-grade ore at the 272 platform since January 2018. The latest
on-reef development samples taken in the 272 platform, recorded an average
grade of 99.2g/t (ranging from 2.2g/t to 1,320g/t) over a mineralised width of
3.36m along a strike length of 24m. This confirms that the high-grade areas of
this mining block are now in production. This high-grade core of the 11-block
MRC orebody is encapsulated within a 75m mineralised envelope with the
remainder of the mineralisation retrieving an average grade of 10.5g/t.
Furthermore, face sampling of the on-reef development, taken of the mineralised
11-block MRC orebody at the 358 platform, resulted in an average grade of 45.7g
/t over a mineralised width of 2m, confirming that the on-reef development has
reached the high-grade section of this mining block. It is envisaged that the
strike length of the MRC orebody on the 358 platform will be 75m with a
high-grade core of 40m, extrapolated from the 272 platform above.
These platforms underpin Fairview's high-grade production and mining
flexibility, particularly for ore haulage, development waste disposal and
improving the mining face availability for the next two years, during which
development of the next platform below the 358 will be completed. Production
from 11-block MRC orebody will be further enhanced with the completion of the
sub-vertical shaft in two years' time.
BTRP regrind mill construction update
The construction of the regrind mill is proceeding according to schedule with
commissioning anticipated in the last week of April 2018. On commissioning of
the regrind mill, production at the BTRP is expected to increase to
approximately 21,000 ounces per annum.
Elikhulu construction update
Construction is progressing ahead of schedule with first gold expected in
August 2018. Ramp up to full production of approximately 55,000 ounces per
annum is expected to take no longer than two months, after which Elikhulu is
estimated to produce gold at an all-in sustaining cost of production of below
$650/oz, at the prevailing USD:ZAR exchange rate. In conjunction with the
Evander Tailings Retreatment Plant, these two operations are expected to
produce more than 70,000 ounces per annum.
Evander Mines labour consultation process
As previously announced on 27 February 2018, Evander Mines is currently in a
consultation process with its labour in terms of section 189 of the South
African Labour Relations Act, 66 of 1995. Further announcements will be made in
due course.
Commenting on the operational update, Cobus Loots, CEO, stated:
"Pan African is focused on sustainable lower cost gold production from our
asset portfolio. After a challenging period at Barberton Mines we have
successfully dealt with the key underground challenges at Fairview's 11-block
and we are on track to re-establish BTRP's production profile at approximately
21,000 ounces per annum. Mining over the past two months at the 272 platform
and the development into the 358 platform confirms the geological continuity of
Fairview's 11-block high-grade orebody. These developments, along with progress
at the BTRP and Elikhulu, provide Pan African with far greater certainty of
high quality gold ounce production."
The information contained in this announcement has not been reviewed or
reported on by Pan African's auditors and is the responsibility of the
Directors of Pan African.
Johannesburg
2 March 2018
Contact information
Corporate Office Registered Office
The Firs Office Building Suite 31
1st Floor, Office 101 Second Floor
Cnr. Cradock and Biermann Avenues 107 Cheapside
Rosebank, Johannesburg London
South Africa EC2V 6DN
Office: + 27 (0) 11 243 2900 United Kingdom
Facsimile: + 27 (0) 11 880 1240 Office: + 44 (0) 207 796 8644
Facsimile: + 44 (0) 207 796 8645
Cobus Loots Deon Louw
Pan African Resources PLC Pan African Resources PLC
Chief Executive Officer Financial Director
Office: + 27 (0) 11 243 2900 Office: + 27 (0) 11 243 2900
Phil Dexter John Prior / Paul Gillam
St James's Corporate Services Limited Numis Securities Limited
Company Secretary Nominated Adviser, Joint Broker
Office: + 44 (0) 207 796 8644 Office: +44 (0) 20 7260 1000
Sholto Simpson Ross Allister / James Bavister
One Capital Peel Hunt LLP
JSE Sponsor Joint Broker
Office: + 27 (0) 11 550 5009 Office: +44 (0) 207 418 8900
Jeffrey Couch/Neil Haycock/Thomas Rider Bobby Morse/Chris Judd
BMO Capital Markets Limited Buchanan Communications
Joint Broker Public & Investor Relations UK
Office: +44 (0) 207 236 1010 Office: + 44 (0) 207 466 5000
Julian Gwillim
Aprio Strategic Communications
Public & Investor Relations SA
Office: +27 (0)11 880 0037
www.panafricanresources.com
END
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