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PAN - Pan African Resources PLC - Significant resource upgrade at Manica Gold

Release Date: 22/06/2011 08:00
Code(s): PAN
Wrap Text

PAN - Pan African Resources PLC - Significant resource upgrade at Manica Gold Project and group mineral resource upgrade 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 SIGNIFICANT RESOURCE UPGRADE AT MANICA GOLD PROJECT AND GROUP MINERAL RESOURCE UPGRADE Pan African Resources, the African focused precious metals producer, announces a significant increase in the mineral resource for its Manica gold project in Mozambique, an updated Group Mineral Resource statement as well as a declared reserve statement for the Phoenix Platinum Mining (Pty) Ltd (`Phoenix Platinum`) project. This follows the significant increase in the mineral resource and reserve at Barberton Mines (Pty) Ltd (`Barberton`) as announced on 31 May 2011. Highlights: Manica Gold Project - Mineral Resource upgrade: Increased Increased Percentage
from: to: Increase: Total mineral resource based on 2.56Moz 2.99Moz 16% gold content (50.554Mt at 1.82g/t in situ) Total Measured & Indicated mineral 1.31Moz 1.38Moz 5% resource based on gold content (24.556Mt at 1.75g/t in situ) Inferred mineral resource based on 1.25Moz 1.58Moz 26% gold content (25.998Mt at 1.90g/t in situ) Group Mineral Resource statement: Increased Increased Percentage
from: to: Increase: Total mineral resource based on 4.63Moz 5.67Moz 22% gold content (63.150Mt at 2.79g/t in situ) Total Measured & Indicated mineral 2.96Moz 3.43Moz 16% resource based on gold content (34.640Mt at 3.07g/t in situ) Inferred mineral resource based on 1.67Moz 2.24Moz 33% gold content (28.510Mt at 2.43g/t in situ) Proved & Probable reserve based on 661,000 1.00Moz 51% gold content (3.830Mt @ 8,12g/t) Phoenix Platinum - Proved and Probable Reserve Increased Increased Percentage from: to: Increase: A Proved and Probable 4E* metal - 174,000oz 100% mineral reserve is declared * Platinum (56,6%), Palladium (27%), Rhodium (16%) and Gold (0,5%) Jan Nelson, Chief Executive Officer of Pan African, commented: "The Manica project now represents a 3Moz deposit, which is significant as there are not many gold deposits in Africa in excess of 3Moz, which outcrop on surface. Significant strike-length remains to be tested. The Company continues to focus on the development of its organic pipeline of projects to increase the profit margin that will, not only continue to grow the value of the company, but also place the Company in a position to continue paying a dividend. We see this as a sound strategy, especially in a market where companies are overpaying on new acquisitions at inflated metal prices to grow metal resources in the ground that potentially might never be brought to account." Manica Gold project - Mineral Resource upgrade Over the past two years, a significant amount of work has been completed to test the economic viability of the Manica project. A total geological re-assessment of the mineralised envelopes has been undertaken, which has resulted in the development of a new geological model. The result is that the mineralised envelopes are being projected with greater geostatistical confidence than before. The Company continues exploring optimum ways to bring this project to account. Group Mineral Resource upgrade Of the total gold mineral inventory, Barberton Mines represents 48% or 2.70Moz (12.600Mt @ 6.64g/t) and Manica 52% or 2.966Moz (50.554mt @ 1.82g/t). In terms of volume, Barberton accounts for 16% (12.6Mt) and Manica for 84% (50.554Mt). In terms of Measured & Indicated gold resource, Barberton accounts for 60% or 2.050Moz (10.090Mt @ 6.30g/t in situ) and Manica for 40% or 1,38Moz (24.556Mt @ 1.75g/t in situ). In terms of Measured and Indicated volume, Barberton accounts for 29% (10.090Mt) and Manica for 69% (24.556Mt). Barberton accounts for the total gold reserve stated. No reserve is declared for the Manica project. A Proved and Probable 4E* metal mineral reserve of 174Koz for the Phoenix platinum project is declared. Construction on the Phoenix platinum project is underway and ahead of schedule and first production of 4E metal is expected in Q2 of the 2011/12 financial year. Pan African consolidated Mineral Resource Inventory as at 1 June 2011 - 100% Attributable to Pan African (Gold operations and Manica Project) RESOURCE MASS GRADE CONTAINED GOLD CATEGORY
(kt) (g/t) (kg) (koz) Barberton Measured 14,310 3.03 43,300 1,390 and the Manica Project Indicated 20,330 3.11 63,200 2,040 Inferred 28,510 2.43 69,400 2,240 Total 63,150 2.79 175,900 5,670 Total Measured and 34,640 3.07 106,500 3,430 Indicated Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding. * Pan African combined table compiled from signed off resource estimates for all gold projects. Pan African consolidated Mineral Resource Inventory as at 1 June 2011 - 100% Attributable to Pan African (Continued) (Gold operations and Manica Project) RESERVE MASS GRADE CONTAINED GOLD CATEGORY
(kt) (g/t) (kg) (koz) Barberton Proved 1,220 7.30 8,900 290 and the Manica Project Probable 2,610 8.51 22,200 710 Total 3,830 8.12 31,100 1,000 Proved and Probable Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding. * Pan African combined table compiled from signed off resource estimates for all gold projects. Barberton Mines Resource and Reserve Estimate as at 1 June 2011 RESOURCE MASS GRADE CONTAINED GOLD CATEGORY
(kt) (g/t) (kg) (koz) Barberton Measured 2,750 8.45 23,300 750 Mineral Inventory 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 Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding. Frans Chadwick, a member of the South African Council for Professional and Technical Surveyors (PLATO) and an employee of Barberton Mines, has signed off on the above Mineral Inventory for Barberton Mines. Barberton Mines Resource and Reserve Estimate as at 1 June 2011 (Continued) RESERVE MASS GRADE CONTAINED GOLD CATEGORY (kt) (g/t) (kg) (koz)
Barberton Proved 1,220 7.27 8,900 290 Mineral Inventory Probable 2,610 8.48 22,200 710 Total 3,830 8.12 31,100 1,000 Proved and Probable Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding. Frans Chadwick, a member of the South African Council for Professional and Technical Surveyors (PLATO) and an employee of Barberton Mines, has signed off on the above Mineral Inventory for Barberton Mines. MANICA PROJECT MINERAL RESOURCE as at 1 June 2011 RESOURCE PROJECT MASS GRADE CONTAINED GOLD CATEGORY (kt) (g/t) (kg) (koz)
Per Category Measured Fairbride 11,561 1.73 19,978 642 Dots Luck - - - - Guy Fawkes - - - -
Boa - - - - Esperanza Total 11,561 1.73 19,978 642 Indicated Fairbride 10,795 1.64 17,720 570 Dots Luck - - - - Guy Fawkes 2,200 2.44 5,200 168 Boa - - - - Esperanza
Total 12,995 1.76 22,920 738 Inferred Fairbride 24,598 1.83 45,075 1,449 Dots Luck 500 3.35 1,500 50 Guy Fawkes 600 2.80 1,700 56
Boa 300 2.96 1,000 31 Esperanza Total 25,998 1,90 49,275 1,586 Total 50,554 1.82 92,173 2,966 Mineral Resource Total Measured, Indicated, Inferred Measured 11,561 1.73 19,978 642 Indicated 12,995 1.76 22,920 738 Inferred 25,998 1.90 49,275 1,586 Total 50,554 1.82 92,173 2,966 Mineral Resource Total Measured and Indicated Measured 11,561 1.73 19,978 642 Indicated 12,995 1.76 22,920 738 Total M&I 24,556 1.75 42,898 1,380 Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding. *Mineral Inventory signed off by B Northrop (Phd, Sci Nat, FSAIMM, FGSSA, MGASA), ExplorMine Total Phoenix Project Resource and Reserve Estimate as at 1 June 2011 PROJECT RESOURCE MASS 4E METAL MINERAL RECOVERY CATEGORY GRADE RESOURCE 4E
METAL (kt) (g/t) (kg) (oz) (%) Surface Tailings Buffels- Measured 218 3.66 797 26,000 45% fontein Tailings Dams Indicated 45%
Inferred Total 218 3.66 797 26,000 45% Elandskraal Measured 1,149 2.45 2,813 90,000 45% Dumps and Pits Indicated 145 2.03 295 9,000 45% Inferred 42 2.00 84 3,000 Total 1,336 2.39 3,192 102,000 45%
Kroondal Measured 260 2.00 520 17,000 45% Dumps Indicated 30 2.00 60 2,000 45% Inferred 120 2.00 240 8,000
Total 410 2.00 820 27,000 45% Total Surface Tailings 1,964 2.45 4,809 155,000 45% Current Arisings Buffels- Measured 1,597 3.66 5,845 188,000 45% fontein Tailings Dams Indicated 443 3.66 1,622 52,000 45%
Inferred 642 3.66 2,348 75,000 Total Current Arisings 2,682 3.66 9,815 316,000 45% Total Measured and Indicated (Proved and Probable) Surface Measured 3,224 3.09 9,975 321,000 45% Tailings & Current Arisings Indicated 618 3.20 1,977 64,000 45%
Total 3,842 3.11 11,952 384,000 45% Grand Total (Surface Tailings + Current Arisings) Total Surface and 4,646 3.15 14,624 470,000 45% Current Arisings Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding. Geologix MRC (Pty) Ltd is a South African Resources and Geological Consultancy - Deon van den Heever is SACNASP accredited and was responsible for the resource estimate. Reserve conversion done by E Nel (Pr. Tech.Eng)(MBA), ENC Minerals Overall mineral inventory checked and signed off by Venmyn Rand The above resources are compliant with the South African Mineral Resources Code (`SAMREC`). Total Phoenix Project Resource and Reserve Estimate as at 1 June 2011 (Continued) PROJECT RESERVE MASS 4E METAL MINERAL CATEGORY GRADE RESERVES 4E METAL (kt) (g/t) (kg) (oz) Surface Tailings Buffels- Proved 218 1.65 359 12,000 fontein Tailings Dams Probable Total 218 1.65 359 12,000 Elandskraal Proved 1,149 1.10 1,266 41,000 Dumps and Pits Probable 145 0.92 133 4,000 Total 1,294 1.08 1,399 45,000 Kroondal Proved 260 0.90 234 8,000 Dumps Probable 30 0.90 27 1,000 Total 290 0.90 261 9,000 Total Total 1,802 1.12 2,018 66,000 Surface Tailings Current Arising Buffels- Proved 1,597 1.65 2,630 85,000 fontein Tailings Dams Probable 443 1.65 730 23,000
Total Current Arisings 2,040 1.65 3,360 108,000 Total Measured and Indicated (Proved and Probable) Surface Proved 3,224 1.39 4,489 146,000 Tailings & Current Arisings Probable 618 1.44 890 28,000 Total 3,842 1.40 5,378 174,000 Grand Total (Surface Tailings + Current Arisings) Total 3,842 1.40 5,378 174,000 Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding. - Geologix MRC (Pty) Ltd is a South African Resources and Geological Consultancy - Deon van den Heever is SACNASP accredited and was responsible for the resource estimate. - Reserve conversion done by E Nel (Pr. Tech.Eng)(MBA), ENC Minerals - Overall mineral inventory checked and signed off by Venmyn Rand - The above resources are compliant with the South African Mineral Resources Code (`SAMREC`). Johannesburg 22 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: 22/06/2011 08:00:04 Supplied by www.sharenet.co.za 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.

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