| Thu 20 May 2010, 8:00 | | PAN - Pan African Resources Plc - Resource upgrade for Phoenix |
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PAN
PAN
PAN - Pan African Resources Plc - Resource upgrade for Phoenix
Pan African Resources plc
(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
(`Pan African` or the `company`)
RESOURCE UPGRADE FOR PHOENIX
Pan African is pleased to announce the results of a resource statement compiled
for its Phoenix Platinum Project (`Phoenix Project`), situated in the Bushveld
Complex in South Africa.
HIGHLIGHTS
Total resource increased by 15.8% to 469,000 ounces 4E Platinum Group Metals
(`PGM 4E`s`)
In situ grade increased by 2.6% to 3.15g/t PGM 4E`s
THE PHOENIX PROJECT
The Phoenix Project is 100% owned by Phoenix Platinum Mining (Pty) Limited
(`Phoenix`), a wholly owned subsidiary of Pan African.
Phoenix concluded an exclusivity agreement with International Ferro Metals SA
(Pty) Limited (`IFM`) on 18 February 2010, which agreement sets out the terms
and conditions under which Phoenix may construct a Chromite Tailings Retreatment
Plant (`CTRP`) on the IFM property. The site position for the CTRP was agreed
on 31 March 2010 and the detailed engineering design of the CTRP is ahead of
schedule. Construction is anticipated to commence during the first quarter of
2011 while first production is planned for September 2011.
Metallicon Process Consulting (Pty) Limited was appointed by Pan African to
validate and verify all procedures relating to the resource estimate. The
estimation process was carried out through a comprehensive drilling, sampling
and assaying programme that underpins the resource calculation.
The process resulted in the metal content increasing by 15.8% from 405,000
ounces PGM 4E`s reported in the Company`s unaudited interim results for the six
months ended 31 December 2009, to 469,000 ounces PGM 4E`s. The grade increased
by 2.6% from 3.07g/t PGM 4E`s to 3.15g/t PGM 4E`s. The resource is summarised
below:
PHOENIX RESOURCE ESTIMATION
Surface tailings resource - 100% attributable to Pan African
Category Volume Tonnes Grade(4E) Kilos* Ounces*
(m2) g/t*
Dumps and Measured 133 000
Pits 774 000 1 627 000 2.54 4 130
Dumps and Indicated 11 000
Pits 83 000 175 000 2.03 355
Dumps and Inferred 10 000
Pits 77 000 162 000 2.00 324
Total 154 000
934 000 1 964 000 2.45 4 809
Current arisings resource - 100% attributable to Pan African
Category Volume Tonnes Grade(4E) Kilos* Ounces*
(m2) g/t*
Current Measured 1 597 000 5 845 188 000
Arisings 761 000 3.66
Indicated 1 622 52 000
211 000 443 000 3.66
Inferred 2 348 75 000
305 000 642 000 3.66
Total 1 277 000 2 682 000 3.66 9 815 315 000
Total resource - 100% attributable to Pan African
Area Category Volume (m2) Tonnes Grade(4E) Kilos* Ounces*
g/t*
All Measured 1 535 000 3 321 000
224 000 3.09 9 975
All Indicated 63 000
294 000 618 000 3.20 1 977
All Inferred 85 000
382 000 804 000 3.33 2 672
Total 2 211 000 4 469 000
646 000 3.15 14 624
* PGM 4E`s
Jan Nelson, Chief Executive Officer of Pan African, commented:
"The increase in the total resources, assuming a 50% recovery, extends the life
of the Phoenix Project from 13 years to approximately 16 years, based on a
production rate of 15,000 ounces PGM 4E`s per annum. In addition, the drilling
programme underpins the high quality of the asset and will further enhance the
operating margin of the project and increase the value to Pan African`s bottom
line".
Notes:
The resource estimate has been compiled in accordance with the South African
Code for Reporting of Exploration Results, Mineral Resources and Mineral
Reserves (`SAMREC`). The verification and validation of the data and the
information contained in this announcement was managed by Martin Bevelander,
Group Consulting Geologist for Pan African, who is accredited with the South
African Council for Natural Scientific Professions (`SACNASP`). He has
consented to the inclusion of the technical information in this announcement in
the form and context in which it appears.
The services of additional independent consultants and experts were also secured
to assist and support this process.
Sampling and Drilling: Plat-Tau Mining Services, Gold Mine Sand and Slime Dams
Drillers CC and Dump & Dune;
Assaying, mineralogy and metallurgical testwork: Mintek and SGS Lakefield
Resources Africa (Pty) Limited;
Geological modelling and data conversion for the resource estimate: Geologix
MRC (Pty) Limited, a South African Resources and Geological Consultancy: Deon
van den Heever is accredited with the SACNASP. He has consented to the
inclusion of the technical information in this announcement in the form and
context in which it appears.
Michael Valenta of Metallicon Process Consulting (Pty) Ltd is a professional
engineer with the Engineering Council of South Africa (`ECSA`) and on the
International Register of Professional Engineers as specified under the
Washington Accord. He has consented to the inclusion of the technical
information in this announcement in the form and context in which it appears.
For further information on Pan African Resources and a presentation providing
more detail on the Phoenix acquisition, please visit the website at
www.panafricanresources.com
Rosebank
20 May 2010
JSE Sponsor
MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED
ENQUIRIES
Pan African Resources
Jan Nelson (CEO) +27 (0) 11 243 2900
Nicole Spruijt (Public Relations) +27 (0) 11 243 2900
RBC Capital Markets
Martin Eales /Brett Jacobs +44 (0) 20 7029 7881
Macquarie First South Advisers
Melanie de Nysschen +27 (0) 11 583 2000
St James`s Corporate Services Limited
Phil Dexter +44 (0) 20 7499 3916
Date: 20/05/2010 08:00:12 Produced by the JSE SENS Department.
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