Sharenet Sites 
Sharenet Sites
Evander tailings retreatment project approved
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")
EVANDER TAILINGS RETREATMENT PROJECT APPROVED
Shareholders of Pan African are referred to the announcement dated 14 March 2013 in which it was
announced that the acquisition of Evander Gold Mines Limited ("Evander") had been completed. Pan African
is pleased to announce that its board of directors (“The Board”) has approved the commencement of
construction of the Evander Tailings Retreatment Project ("ETRP"), which will recover gold from the
retreatment of gold tailings situated at Evander in South Africa’s Mpumalanga province.
1. Salient information pertaining to the ETRP
- The ETRP comprises a total mineral resource of 597koz (57.8Mt @ 0.32g/t contained in Dams 1, 2
and 3 of the Kinross tailings storage facility (“TSF”)) and a mineral reserve of 369koz (32.3Mt @
0.32g/t contained in Dams 1 and 2 of the Kinross TSF).
- A total estimated capital expenditure budget ("Capex") of ZAR200 million (approximately
GBP11.2 million) has been approved for the ETRP in order to retreat 2.16Mt per annum of gold
tailings over a 14 year life.
- Once completed, it is anticipated that the ETRP will contribute approximately 10,000 oz per annum to
Evander’s gold production, at expected cash cost of ZAR280,000 per kilogram (approximately
US$800 per ounce).
- The estimated net present value of the ETRP is ZAR170 million with a forecast project payback
period of less than five years.
- The Capex of ZAR200 million will be fully funded via a gold loan of approximately 15,700oz from
ABSA Bank Limited (“Gold Loan”) and the ETRP construction cost is therefore not expected to impact
materially on other Pan African cashflows. The Gold Loan will be repaid in quarterly instalments over
a 4 year period, commencing in August 2014.
- Commissioning of the ETRP is expected to commence during mid-January 2015, with full production
anticipated by June 2015.
- A remaining tailings mineral resource of 1.5Moz (167.6Mt @ 0.28 g/t) exists on the Winkelhaak,
Leslie, Bracken and Kinross Dam 3 TSF’s situated on the Evander mining right area. This presents
the potential for a larger tailings retreatment plant that may be constructed in the future.
The ETRP project will increase Evander’s gold production with up to 10 000 oz per annum at a low cash
cost, thereby increasing the profitability of Evander and, consequently, that of Pan African. The project
will bring to account a portion of the significant tailings resource at Evander and will utilise the current
spare capacity of the Kinross metallurgical plant (2.16 million tons per annum). The success of the ETRP
could provide a springboard for an even larger tailings project in the coming years.
2. Project concept and locality
The ETRP is a tailings retreatment project which will exploit historically generated gold tailings deposited
on the Kinross TSF. The TSF is situated adjacent to the Kinross metallurgical processing plant and falls
within the tenure of the Evander mining right. In order to achieve a comparable life-of-mine to that of
Evander No 8 Shaft the ETRP will only need to exploit two of the three available Dams at the Kinross
TSF.
A total of 88 boreholes were drilled on a 200m x 200m grid to determine the potential mineral resource.
Samples were also subjected to detailed metallurgical test-work which indicates a gold recovery of 40%.
Total ETRP mineral resource and reserve statement as at 2 January 2014 is as follows:
- The total mineral resource for the project has been estimated to be 57.8Mt at an average grade of
0.32g/t Au generating 597koz Au over the life of the project.
- The definitive feasibility study (“DFS”) estimated a probable mineral reserve of 32.3Mt at a grade of
0.32g/t Au generating 369koz Au over the life of the project.
Mr B Naicker, the competent person for Evander and Pan African Group Mineral Resource Manager,
signed off the mineral resources and mineral reserves for Evander. Based at Pan African’s head office in
Rosebank, Naicker is a member of the South African Council for Scientific Professions (400234/10) and
has a Master’s degree in Mineral Resource Management from Witwatersrand University and a Bachelor
of Science (Honours) in Economic Geology. He has 13 years of experience in economic geology and
mineral resource management in gold and related deposits.
Mr. Naicker has approved the information contained in this announcement relating to mineral resources
and mineral reserves for the ETRP. The mineral resources and mineral reserves comply with the
SAMVAL Code insofar as it relates to a valuation of mineral assets.
3. Project development summary
The original Kinross metallurgical plant was designed to treat 240,000 tons run of mine (“ROM”) per
month and was subsequently rationalised to its current capacity to process 60,000 tons per month from
surface and underground sources. The ETRP project will refurbish the carbon-in-leach plant to treat
approximately 180,000 tons of tailings per month, through using electro-winning and smelting to produce
a saleable product. A cost benefit of the ETRP is that no additional milling of feed material will be
required.
Basil Read-Matomo, who successfully constructed Pan African’s Phoenix Chrome Tailings Retreatment
Plant as well as its Barberton Tailings Retreatment Plant, completed the ETRP feasibility report and plant
Capex forecast. Fraser Alexander completed the TSF feasibility report and associated capital forecast.
The total Capex for the ETRP is estimated to be ZAR200 million (approximately GBP11.2 million) of
which approximately ZAR110 million will be spent on plant design, refurbishment and construction with
the remainder on re-mining, TSF and other infrastructure.
Basil Read-Matomo has been contracted to design, procure and construct the ETRP and Fraser
Alexander will construct the TSF and operate the re-mining operation. Long lead items such as leach
tanks and carbon regeneration kilns are currently being procured. Civil work of the ETRP is planned to
commence in April 2014 with re-mining and plant commissioning commencing in January 2015. Build up
to full production is anticipated by June 2015. The expected electric power requirement of the ETRP
(2800 KWhr) will be sourced as part of the current Kinross plant power reticulation.
The project should provide full time employment for an additional 20 workers after completion.
For further information on Pan African Resources plc, please visit the website at www.panafricanresources.com
28 March 2014
JSE Sponsor
One Capital
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