To view the PDF file, sign up for a MySharenet subscription.

PAN AFRICAN RESOURCES PLC - Group operational update

Release Date: 07/05/2013 13:40
Code(s): PAN     PDF:  
Wrap Text
Group operational update

Pan African Resources PLC
(Incorporated and registered in England and Wales under Companies Act 1985 with registered number
3937466 on 25 February 2000)
AIM Code: PAF
JSE Code: PAN
ISIN: GB0004300496
("Pan African" or “the Company”)

GROUP OPERATIONAL UPDATE


Following the recent successful acquisition of a 100% interest in Evander Gold Mines Limited (“Evander”),
Pan African is pleased to issue an update in respect of its group operations.


Barberton Gold Mine Operations (“BGMO”) and Evander

Production highlights for the quarter ended 31 March 2013 at BGMO and Evander are as follows:


                                                Evander                                      BGMO

                                 1st Quarter    2nd Quarter   3rd Quarter   1st Quarter    2nd Quarter   3rd Quarter
 Description     Unit
                                 FY 2013        FY 2013       FY 2013**     FY 2013        FY 2013       FY 2013
 Tonnes Milled   (tonnes ‘000)           159           141           143              80            76           76
 Gold Sold       (oz)                  24,853       20,737        25,592          23,200       21,726        25,881


 ** The purchase of Evander was completed on 28 February 2013. Gold sold attributable to the Pan African group from
 Evander was 10,325oz for March 2013.


Both BGMO and Evander achieved good results in this last quarter in terms of recovered grades and gold
produced and sold. The overall average recovered grade for the last quarter of the 2013 financial year is
expected to be 9.7 g/t for BGMO and 4.6 g/t for Evander. The underground recovered grade, excluding
surface sources, for the upcoming quarter is expected to be 10.7 g/t for BGMO and 6.5 g/t for Evander.

Evander

A key short to medium-term objective at Evander is to identify, evaluate and advance organic growth
projects. The mine has begun to equip the No 7 Shaft area to retrieve additional ounces from previously
mined areas. Further optimisation opportunities have also been identified in low grade surface rock dumps.

Evander’s results will be consolidated into the Pan African group results with effect from 1 March 2013.

Barberton Tailings Retreatment Project (“BTRP”)

The BTRP remains on target and within budget to commence production in the first quarter of FY 2014.

The project is expected to retreat 1,200,000 tonnes of gold tailings per annum, with a total life of project
production of 160,000oz of gold at an average recovered grade of 0.54 g/t. The BTRP is anticipated to
increase the annual production profile at BGMO by approximately 20,000oz per annum.
The necessary Eskom supply agreements have been concluded and the two overhead lines for the required
4,000 MVA have been installed. The environmental impact assessment for the Tailings Storage Facility
(“TSF”) has been approved. In line with the planned schedule, Stefanutti Stocks has begun construction of
the TSF, and phase 1 is anticipated to be completed by July 2013. The project has invoiced ZAR 194.2
million since the start of construction in April 2012 and has a projected project value of ZAR 305.8 million.

Phoenix Platinum Mining (“Phoenix”)

Phoenix produced 1,463oz 6E PGE for the quarter under review. Production at the plant remained
constrained due to the supply of oxide tailings by ferrochrome producer International Ferro Metals Limited,
which negatively affects the flotation recovery.

The Company continues to explore options to ameliorate the impact of this oxide feed material. These
options include:
•     increasing feed tonnages into the plant;
•     additional test work to be carried out on the chemical reagent suite; and
•     expediting deliverables for the new TSF project.

Ron Holding, Joint Interim CEO of Pan African commented:

“The acquisition of Evander has propelled Pan African into a new phase of growth. Our current emphasis
is the successful integration of the asset into the group. This integration is progressing well and is in line
with our expectations. We will continue our efforts to create and maintain a safe working environment,
achieve our stated production targets and control costs at all of our operations.”



Johannesburg
7 May 2013

JSE Sponsor
One Capital



PAN AFRICAN ENQUIRIES




South Africa                                          UK




Pan African Resources                                 Canaccord Genuity Limited – Nomad and Joint Broker

Mr Cobus Loots                                        Andrew Chubb / Peter Stewart / Joe Weaving

Non-executive director and Joint Interim Chief        +44 (0) 20 7523 8000
Executive Officer
+27 (0) 11 305 8900

Mr Ron Holding

Chief Operating Officer and Joint Interim Chief
Executive Officer

+27 (0) 11 243 2900




One Capital                                       finnCap Limited – Joint Broker

Sholto Simpson / Megan Young                      Elizabeth Johnson / Joanna Weaving

+27 (0) 11 550 5000                               +44 (0) 20 7220 0500




Vestor Investor Relations                         St James’s Corporate Services Limited

Louise Brugman                                    Phil Dexter

+27 (0) 11 787 3015                               +44 (0) 20 7499 3916

+27 83 504 1186

                                                  Gable Communications

                                                  Justine James

                                                  +44 (0) 20 7193 7463 / +44 (0) 7525 324431

For further information on Pan African, please visit the website at www.panafricanresources.com

Date: 07/05/2013 01:40:00 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.

Share This Story