| Wed 11 Jun 2008, 8:00 | | PAN - Pan African - Company update on production & exploration results |
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PAN
PAN
PAN - Pan African - Company update on production & exploration results
Pan African Resources PLC
(`Pan African` or the `Company`)
(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
11 June 2008
Company Update on Production & Exploration Results
Pan African announces the following updates on the exploration and production
activities at the Company`s various projects.
South Africa
Barberton Mines have continued to operate in line with management expectations.
As of 30 June 2008, the mines will be un-hedged and therefore will be fully
leveraged to the gold price. The cash flows produced by Barberton Mines
continue to fund the Company`s exploration activities.
At Barberton, the internal reserve replacement programs at Joe`s Luck,
Zwartkoppies Deep and Consort below 50 level are progressing well. These
internal projects are expected to be completed within three years.
In addition, the compilation of historical drill hole, trench and geophysical
data by independent geological contractors has been completed and five major
prospective exploration targets have been identified, namely; Amira, Florence &
Devonian, Eagle`s Nest, Southern Zwartkoppies and Mazepa. A geological team
has been assembled to follow up these targets during the course of the next 12
months.
Mozambique
The data required for the Pre-Feasibility study of the Manica Project has been
compiled and collated. The indicative results show that additional geological
and engineering work is required to define the higher grade areas so that the
mining plan can be optimized in terms of costs, grade and methods of extraction
to maximise possible returns for the project. Drilling continues to the deeper
parts of the ore body to further upgrade the resource from inferred to measured
and indicated.
The final results of the Pre-Feasibility study are expected to be made
available towards the end of Q3 2008.
Central African Republic
A Reverse Circulation ("RC") drilling program commenced at the Bogoin project
in the Central African Republic in Q2 2008. At this stage the drilling is
directed to find the source of gold which has led to the gold-in-soil anomalies
evident on surface. So far 20 holes have been drilled to a depth of
approximately 100m.
These initial holes were started to the north of the gold in soil anomaly on
which the defunct Roux open pit is situated. To date assay results for 7 of
the 20 holes have been received. The best intersections to date are listed
below:
1m @ 5.92g/t (Borehole ID: BGRC001; 99-100m)
1m @ 5.40g/t (Borehole ID: BGRC001; 101-102m)
1m @ 10.40g/t (Borehole ID: BGRC003; 26-27m)
1m @ 21.68g/t (Borehole ID: BGRC003; 39-40m)
1m @ 4.08g/t (Borehole ID: BGRC005; 30-31m)
1m @ 10.20g/t (Borehole ID: BGRC005; 34-35m)
Note: - widths reported are as intersected in the borehole and samples were
taken over 1m widths.
The plan is to move southwards over this area with widely spaced holes in an
endeavour to identify the host rock containing the gold. If successful, more
closely spaced drilling will be initiated in these areas. The results of these
holes will be published once the assays are known and a geological
interpretation of the area is completed. Due to the prospective nature of this
area, as well as the Company`s extensive land holdings, the Company has decided
to accelerate the program with the introduction of a second RC drill rig.
Ghana
Also in Q2 2008 the Company commenced a planned 6,000m drilling program on the
eastern side of the Akrokerri project in order to test the strike and downdip
potential of the historical Akrokerri Mine, which produced 74,000 ounces of
gold at a recovered grade of 24.6g/t from 1900 - 1909. A total of 3,000m of
this program have been completed to date, for which the Company is awaiting
assay results.
A geophysical IP survey is currently underway towards the north of the
Akrokerri project to enable the team to define additional drill targets to the
south of the AngoGold Ashanti Homase pit.
Jan Nelson, CEO of Pan African Resources, commented: "The Company is pleased
with the progress of its exploration projects which are all being funded by
cash flow from Barberton Mines. The Pre-Feasibility is taking longer than
expected on the Manica gold project as a result of new geological
interpretations, however additional resources have been contracted to complete
the Pre-Feasibility work in the shortest period possible. The Company is
extremely pleased by the initial drill intersections made on the Bogoin project
in the CAR. The results received to date come from boreholes drilled on the
edge of the gold-in-soil anomaly, and drilling is currently underway to test
the heart of the anomaly."
ENDS
For further information on Pan African Resources plc, please visit the website
at www.panafricanresources.com
Enquiries:
Pan African Ambrian Partners Macquarie First St James`s
Resources Limited South Corporate Corporate Services
Finance (Pty) Limited
Limited
Richard Brown Amanda Markman Phil Dexter
Jan Nelson +44 (0) 20 7634 +27 (0) 11 343 +44 (0) 20 7499
CEO 4709 2307 3916
+27 (0) 11 777
7840 Annerie Britz
Richard +27 (0) 11 343 FDBeachhead Media &
Keith Spencer Greenfield 2328 Investor Relations
Chairman +44 (0) 20 7634
+27 (0) 11 880 4710 Jennifer Cohen
3155 +27 (0) 11 214 2401
Nicole Stoyell Louise Brugman
Public Relations +27 (0) 11 214 2415
+27 (0) 11 777
7840
Martin Bevelander, Group Consulting Geologist for Pan African Resources, is
SACNASP accredited and was responsible for validating the borehole
intersections.
Date: 11/06/2008 08:00:01 Produced by the JSE SENS Department.
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