Pan African Resources Plc Operational Update

 
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: [phone] 
 
Sholto Simpson                             Ross Allister / James Bavister 
One Capital                                Peel Hunt LLP 
JSE Sponsor                                Joint Broker 
Office: + 27 (0) 11 550 5009               Office: [phone] 
 
Jeffrey Couch/Neil Haycock/Thomas Rider    Bobby Morse/Chris Judd 
BMO Capital Markets Limited                Buchanan Communications 
Joint Broker                               Public & Investor Relations UK 
Office: [phone]               Office: + 44 (0) 207 466 5000 
 
Julian Gwillim 
Aprio Strategic Communications 
Public & Investor Relations SA 
Office: [phone] 
 
www.panafricanresources.com 
 
 
 
END 
 

(END) Dow Jones Newswires

March 02, 2018 02:00 ET (07:00 GMT)