| Thu 9 Jun 2011, 9:00 | | PAN - Pan African Resources PLC - Encouraging Results of Drilling Programme at |
|
PAN
PAN
PAN - Pan African Resources PLC - Encouraging Results of Drilling Programme at
Bramber Tailings Dam at Barberton Mines (Pty) Ltd
Pan African Resources PLC
(`Pan African` or the `Company` or the `Group`)
Incorporated and registered in England and Wales under Companies Act 1985 with
the registered number: 3937466 on 25 February 2000
Share Code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
ENCOURAGING RESULTS OF DRILLING PROGRAMME AT BRAMBER TAILINGS DAM AT BARBERTON
MINES (PTY) LTD
Pan African Resources PLC (`Pan African`), the African focused precious metals
producer, announces the results of a drilling programme on the Bramber tailings
dam at Barberton Mines (Pty) Ltd (`Barberton Mines`).
Highlights:
- Indicated mineral resource declared of 148koz (3.130Mt @ 1.47g/t in situ)
independently verified at a cut off grade of 0.5g/t
- Initial metallurgical test work indicates recoveries of 45% to 55%
- Order of Magnitude (`OME`) study estimates capital for the project for a
Carbon-in-Leach plant at ZAR120 million (approximately GBP11m) to treat 1.2Mt of
tailings per annum at Barberton Mines for a period of approximately three years
- An additional 9Mt of dump material is currently being investigated that could
increase the life of project (`LOP`) from three years to ten years
- If viable this project could increase production at Barberton Mines by another
20koz per annum over the LOP
- Feasibility study on the project will be completed by Q2 of 2011/12 financial
year
Jan Nelson, Chief Executive Officer of Pan African, commented: "We are very
encouraged by these results that show that the re-treatment of tailings at
Barberton Mines is developing into a significant stand alone gold project. Not
only could it increase the current production profile of the Company by 20koz
per annum but also increase the operating margin and reduce unit costs. The
project at a 10% real discount rate yields a net present value of approximately
ZAR350 million with an internal rate of return of approximately 85% assuming a
gold price of ZAR300,000/kg. We continue to focus on organic growth
opportunities within the Group to grow our earnings."
The Bramber tailings dam, which has been used as a tailings storage facility at
Barberton Mines since 1986, reached the end of its operational life in January
2011. A new tailings facility was commissioned at that time. Due to the current
high gold price and low cost associated with the re-treatment of tailings dams,
the Company undertook a drilling programme to evaluate the dam as a source of
additional production ounces.
A total of 308 auger drillholes were drilled on a grid of 20 metre x 20 metre
representing approximately 6,074 metres. Samples of each hole were taken at 1.5
metres intervals and composited at 3 metres intervals representing a total of
2,344 samples taken for assaying. Modeling and geological profiling of the
boreholes confirmed two distinct depositional populations across the tailings
dam which is the result of separate historical deposition that took place in two
separate compartments, a higher grade BIOXRegistered tail section and a lower
concentrator/flotation tail section. Geostatistical modeling indicates 74.6koz
(758kt at 3.06g/t in situ) for the BIOXRegistered section and 72.9koz (2.369Mt
at 0.96g/t in situ) for the concentrator/flotation section. This represents a
total indicated resource of 148koz (3.130Mt at 1.47g/t in situ).
A total of 10 composite samples representative of the tailings dam were
submitted for metallurgical recovery test work. Initial excess cyanide test work
indicates recoveries varying between 45% and 55%. Kinetic test work is being
done to determine residence time that guides the process flow design for plant
optimum configuration to be used in the feasibility study. The feasibility study
covering plant design, final process flow design, volume throughput, chemical
and reagent consumption, recoveries and capital and operating expenditure will
be completed by quarter two of the 2011/12 financial year. If feasible a new
plant will be constructed to treat 1.2Mt per annum of tailings for three years.
An OME study completed by Matomo Projects (Pty) Ltd (`Matomo`) estimates the
capital cost of the plant at approximately ZAR120 million (approximately
GBP11m). Plant construction is estimated to take 12 months.
The Company is currently drilling another 9Mt of tailings which if viable could
extend the LOP from approximately three to ten years and increase the annual
production profile at the mine by approximately 20koz. The drilling programme
and associated metallurgical test work applicable to the expansion is expected
to be completed within three months.
Bramber Tailings Mineral Inventory
Project Resource Mass Grade Mineral Resource
Category
(kt) (g/t) (kg) (koz)
Surface Tailings
Bramber Measured
Tailings
Dam
Indicated 3,130 1.47 4,600 148
Inferred
Total 3,130 1.47 4,600 148
Total Surface Tailings 3,130 1.47 4,600 148
Barberton Mines Mineral Inventory
* Inclusive of the Bramber Tailings Mineral Inventory
Barbeton Resource Mass Grade Contained Gold
Mines Category
Mineral
Inventory
(kt) (g/t) (kg) (koz)
Measured 2,750 8.45 23,300 750
Indicated 7,340 5.50 40,300 1,300
Inferred 2,510 8.01 20,100 650
Total 12,600 6.64 83,700 2,700
Total Measured and 10,090 6.30 63,600 2,050
Indicated
Reserve Category Mass Grade Contained Gold
(kt) (g/t) (kg) (koz)
Proved 1,220 7.27 8,900 290
Probable 2,610 8.48 22,200 710
Total Proved and Probable 3,830 8.12 31,100 1,000
Notes:
- Please note differences may occur due to rounding.
- The table above is only with respect to Barberton Mines.
The Company is currently updating the Group`s Mineral Inventory statement and
this will be announced in due course.
- Frans Chadwick, a member of the South African Council for Professional and
Technical Surveyors and an employee of Barberton Mines, has signed off on the
above Mineral Inventory for Barberton Mines.
- Dave Briggs, a member of South African Council for Natural Scientists and an
independent Geological Consultant signed off on the Mineral Inventory for the
Bramber Tailings Inventory.
- The above resource is compliant with the South African Mineral Resources Code.
Johannesburg
9 June 2011
JSE Sponsor:
Macquarie First South Advisers (Pty) Limited
Enquiries:
South Africa UK
Pan African RBC Capital Markets
Jan Nelson, Chief Executive Martin Eales
Officer +44 (0) 20 7653 4000
+27 (0) 11 243 2900
Pan African St James`s Corporate
Nicole Spruijt, Public Services Limited
Relations Phil Dexter
+27 (0) 11 243 2900 +44 (0) 20 7499 3916
Macquarie First South Gable Communications
Advisers (Pty) Ltd Justine James
Natalie Di-Sante/Melanie de +44 (0)20 7193 7463
Nysschen
+27 (0) 11 583 2000
Date: 09/06/2011 09:00:06 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
