Pan African Resources Plc Operational Update quarter ended 30/09/18

 
TIDMPAF 
 
Pan African Resources PLC 
 
                ("Pan African" or "the company" or "the group") 
 
(Incorporated and registered in England and Wales under Companies Act 1985 with 
                registered number 3937466 on 25 February 2000) 
 
                            Share code on AIM: PAF 
 
                            Share code on JSE: PAN 
 
                              ISIN: GB0004300496 
 
        OPERATIONAL UPDATE FOR THE QUARTER ENDED 30 SEPTEMBER 2018 
 
Pan African is pleased to provide an operational update for the first quarter 
of the 2019 financial year ("this quarter" or "first quarter"), and further 
information on the performance of the Elikhulu Tailings Retreatment Plant 
("Elikhulu"). 
 
Pan African CEO Cobus Loots commented: 
 
"Pan African recorded a commendable safety and production performance for the 
first quarter of the 2019 financial year. The group produced 37,729oz of gold 
during the quarter, and with Elikhulu now commissioned and running at design 
capacity, we are confident of achieving our production guidance of 
approximately 170,000oz for the 2019 financial year. 
 
Elikhulu ramped-up to its design capacity of 1-million tonnes per month during 
October 2018, ahead of the original schedule and on budget. Average gold 
recoveries achieved were consistent with our forecasts, with further 
optimisation of recoveries expected in the short term. The incorporation of the 
Evander Tailings Retreatment Plant ("ETRP") into Elikhulu, which will increase 
Elikhulu's capacity to 1.2-million tonnes per month, is progressing on 
schedule, with full commissioning expected to be completed by January 2019. 
 
Barberton Mines is on track to meet its full-year production guidance of 
100,000oz, with the underground operations' production benefitting from 
Fairview Mine's high-grade 272 and 358 platforms, and the newly installed 
regrind mill at the Barberton Tailings Retreatment Plant ("BTRP") performing as 
anticipated. 
 
At Evander Mines, we have commenced mining and vamping of the remnant 
high-grade stopes as part of the phased closure of the underground mining 
operations as an initiative to supplement Evander Mines' production, while 
commencing with the equipping and preparatory work to advance the mining of the 
8 Shaft pillar and high-grade areas in proximity to the pillar. The first phase 
of the equipping and preparatory work is expected to be completed in the third 
quarter of the 2019 financial year. 
 
The drilling programme on Barberton Mines' Royal Sheba prospect has been 
completed, and we look forward to updating shareholders on the progress of this 
exciting growth project in the coming months with an updated resource statement 
to be released by the end of November 2018, and the feasibility study still on 
schedule for release in February 2019." 
 
Safety 
 
The group has significantly improved its safety performance in the first 
quarter, and we remain committed and focussed to ensuring the safety of all our 
employees, while we continue to strive towards a zero harm environment. 
 
  * Fairview Mine achieved its one-million fatality-free shift milestone during 
    July 2018; 
  * The group had no fatalities in this quarter (2018 Q1: no fatalities); 
  * The group's lost-time injury frequency rate improved significantly to 0.57 
    (2018 Q1:3.64); 
  * The reportable injury frequency rate improved significantly in this quarter 
    to zero (2018 Q1: 0.91); and 
  * The group is implementing recommendations from independent safety experts, 
    following reviews of the respective mining operations' safety systems and 
    controls. 
 
Elikhulu 
 
  * As previously communicated, Elikhulu was successfully commissioned during 
    September 2018, ahead of the original project schedule and on budget; 
  * During October 2018, the plant attained steady-state production with a 
    throughput of 1-million tonnes per month. The average gold recoveries 
    achieved were consistent with our forecasts, with further optimisation of 
    recoveries expected in the next months; and 
  * The incorporation of the existing ETRP throughput into Elikhulu's 
    processing capacity, which will result in an increased processing capacity 
    of 1.2-million tonnes per month, is on track with full commissioning 
    expected to be completed by January 2019. 
  * Barberton Mines Proprietary Limited ("Barberton Mines") 
  * Barberton Mines produced 27,201oz for this quarter, with underground mining 
    operations contributing 21,278oz, and the BTRP contributing 5,923oz. 
    Barberton Mines remains on track to deliver its annual production guidance 
    of approximately 100,000oz for the 2019 financial year. 
  * Barberton Mines' underground operations are benefitting from increased 
    underground mining flexibility due to, inter alia, both the high-grade 272 
    and 358 platforms being available at the Fairview Mine operation. The BTRP 
    is also benefiting from the commissioning of the regrind mill during May 
    2018, which has improved throughput and recoveries. 
  * Barberton Mines has increased development rates to further improve Fairview 
    Mine's mining flexibility at the 11-block by developing towards an 
    additional high-grade platform (256 platform), below the existing 272 and 
    358 platforms.  This platform is expected to be in production by the end of 
    the 2019 financial year. 
 
Evander Gold Mines Proprietary Limited ("Evander Mines") 
 
  * Evander Mines has implemented the following initiatives to maximise Evander 
    Mines' underground gold production: 
 
 1. Mining and vamping of the remnant high-grade stopes as part of the phased 
    closure of the underground mining operations, which contributed 3,815oz 
    during this quarter; and 
 2. While the above operations are ongoing, the mine has commenced equipping 
    and preparatory work to advance mining of the 8 Shaft pillar and high-grade 
    areas in proximity to the pillar, following a comprehensive review on the 
    technical merits thereof. The first phase of the equipping and development 
    of the 8 Shaft pillar and surrounding areas is estimated to be completed in 
    the third quarter of the 2019 financial year. 
 
  * The ETRP and surface-source operations produced 3,819oz for this quarter, 
    and the operation is investigating new sources of feed for the Kinross 
    plant, once the ETRP operation is integrated into Elikhulu. 
 
The financial information contained in this announcement has neither been 
reviewed nor audited by the company's auditors and is the responsibility of the 
directors of Pan African. 
 
For further information on Pan African, please visit the company's website at 
www.panafricanresources.com 
 
6 November 2018 
 
Contact information 
 
Corporate Office                   Registered Office 
The Firs Office Building           Suite 31 
2nd Floor, Office 201              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) 20 7796 8644 
                                   Facsimile: + 44 (0) 20 7796 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      Numis Securities Limited 
Limited                            Nominated Adviser and Joint Broker 
Company Secretary                  Office: [phone] 
Office: + 44 (0) 20 7796 8644 
 
Sholto Simpson                     Ross Allister/James Bavister/David 
One Capital                        McKeown 
JSE Sponsor                        Peel Hunt LLP 
Office: + 27 (0) 11 550 5009       Joint Broker 
                                   Office: [phone] 
 
Julian Gwillim                     Jeffrey Couch/Thomas Rider 
Aprio Strategic Communications     BMO Capital Markets Limited 
Public & Investor Relations SA     Joint Broker 
Office: [phone]         Office: [phone] 
 
Bobby Morse 
Buchanan 
Public & Investor Relations UK 
Office: [phone] 
Email: [e-mail] 
 
Website: www.panafricanresources.com 
 
 
 
END 
 

(END) Dow Jones Newswires

November 06, 2018 02:00 ET (07:00 GMT)