Wrap Text
2015 Abridged Mineral Resource & Mineral Reserve Report
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 Resources" or the "Company" or the "Group")
2015 Abridged Mineral Resource & Mineral Reserve Report
Pan African Resources PLC (AIM: PAF, JSE: PAN), the African focused precious metals producer, is
pleased to announce that the 2015 Abridged Mineral Resource and Mineral Reserve Report
("MR&MR") has now been published and is available on the Company's website at
www.panafricanresources.com. A summary of the report, including the Group Mineral Resource and
Mineral Reserve statement as at 30 June 2015 has been provided below.
Overview
- 0.3 million ounces (“Moz”) or 3.0% gross annual increase in Group’s gold reserve to
10.4Moz (2014: 10.1Moz)
- Increase in the Group’s gold reserve due to the extension of the Main Reef Complex
(“MRC”) orebody on Fairview Mine (0.3Moz), at Barberton Mines
- 1.6Moz or 4.8% decrease in Group’s gold resource to 31.9Moz (2014: 33.5Moz)
- 20,000oz or 3.9% decrease in Group’s Platinum Group Elements (“PGE”) reserve to 0.50Moz
(2014: 0.52Moz)
- No material change in Group’s PGE resource, 0.6Moz (2014: 0.6Moz)
- Exploration drilling and organic growth in accessing and development of orebodies at the
Group's key assets progressed and has incremental resource ounces added
- Ongoing conversion of resources to reserves expected to continue to increase life of mine
production profiles
- Preliminary economic assessments for Evander South brownfields project (“Evander South
Project”) and Elikhulu
Gold
Group Gold Mineral Resources
The Group's attributable gold Mineral Resources decreased from 33.5 Moz in June 2014 to 31.9Moz
in June 2015, equating to an annual decrease of 1.6Moz, or 4.8%. Of this variance, a decrease of
1.9Moz can be attributed to Evander Mines and an increase of 0.3Moz to Barberton Mines.
As at 30 June 2015
Tonnes Grade Contained Gold
Category (million) (g/t) kg Moz
Mineral Resource Measured 6.5 10.35 67,471 2.2
Indicated 273.7 2.33 637,457 20.5
Inferred 38.6 7.43 286,990 9.2
Pan African Resources Total 318.8 3.11 991,918 31.9
The decrease in Mineral Resources can be attributed to inflationary cost drivers in the reporting of the
2015 Mineral Resources. The 0.3Moz positive variance in contained gold at Barberton Mines was a
result of adding new mineral resources from the extension of the MRC orebody on Fairview Mine.
Group Gold Mineral Reserves
The Group's attributable Mineral Reserves increased from 10.1Moz in June 2014 to 10.4Moz in June
2015 - an annual increase of 0.3Moz, or 3.0%. Of this variance, 0.3Moz increase can be attributed to
Barberton Mines.
As at 30 June 2015
Tonnes Grade Contained Gold
Category (million) (g/t) kg Moz
Mineral Reserve Proved 3.9 7.27 28,474 1.0
Probable 81.0 3.62 293,478 9.4
Pan African Resources Total 84.9 3.79 321,952 10.4
The total increase in the Mineral Reserves can be attributed to the conversion of Mineral Resources at
Barberton Mines, the extension of MRC orebody at Fairview Mine.
Platinum Group Elements
Group PGE Mineral Resources
The Group's attributable PGE Mineral Resources did not change materially in the year under review.
As at 30 June 2015
Tonnes Grade Contained PGE’s
Category (million) (g/t) kg Moz
Mineral Resource Measured 1.6 2.46 3,937 0.1
Indicated 3.2 3.66 11,574 0.4
Inferred 1.2 2.90 3,446 0.1
Pan African Resources Total 6.0 3.14 18,957 0.6
Group PGE Mineral Reserves
The Group's attributable PGE Mineral Reserves decreased from 0.52Moz in June 2014 to 0.50Moz in
June 2015 - an annual decrease of 20,000oz or 3.9%. This was due to the re-mining of the
Buffelsfontein tailings dams in the current year.
As at 30 June
2015 Tonnes Grade Contained PGE’s
Category (million) (g/t) kg Moz
Mineral Reserve Proved 1.6 2.46 3,937 0.1
Probable 3.2 3.56 11,574 0.4
Pan African Resources Total 4.8 3.20 15,511 0.5
Group organic growth
Group: Exploring the orebody - exploration drilling
Operation Total No. of Average No. of Average Total
metres boreholes channel intersections grade expenditure
width above cut- (g/t) (Rm)
(cm) off
Barberton Mines 11,491 157 130 72 19.79 8.5
Evander Mines 632 12 132 8 16.30 0.6
Phoenix Platinum – – – – – –
Highlights:
Exploration drilling projects at Barberton Mines yielded positive results, confirming the down dip
extension of the high grade 11 Block of the MRC ore body by a further 170 meters. This extension to
the MRC orebody resulted in an annual increase in Barberton Mines’ Mineral Reserves by
236,162 oz, thereby extending the life of mine of Barberton Mines to 20 years.
The Fairview MRC orebody has been the primary gold contributor towards gold produced at
Barberton Mines. This orebody is an epigenetic hydrothermal lode-gold deposit with a strike length
that ranges between 70m – 120m and also extending to depth. Gold mineralisation is associated with
arsenopyrite and pyrite with an average reserve grade of 35 g/t declared for the MRC. The mineralised
widths range between 7m – 15m.
Recent borehole results of the 11 Block are detailed hereunder:
Borehole number Channel width (cm) Grade (g/t)
Bh 5940 687 53.30
Bh 5816 691 120.03
Bh 5849 1626 50.22
Bh 5864 1383 43.82
Accessing the orebody - on-reef development
Operation Total on-reef development (m) Average grade (g/t)
Barberton Mines 1,041 5.01
Evander Mines 528 22.72
Phoenix Platinum – –
Barberton Mines: Developing the orebody - capital ore reserve projects
Y/E 30 June 2015 Y/E 30 June 2014 Y/E 30 June 2013 Potential resource
Project
(m) (m) (m) target (oz)
Sheba – pillar 824 351 317 23,599
development
Sheba – Edwin 5 (equipping incline 171 102 13,246
Bray to Thomas and shaft)
Joe’s Luck area
Fairview – 11 Level 0 (equipping old 0 (equipping old 0 17,000
Royal Reef main shaft) main shaft)
Fairview – 1# ore 84 154 179 14,821
reserve opening
Fairview – 3 Shaft 26 0 228 1,600
deepening
Fairview – 64-68 447 295 601 840,704
Level
Sheba Western C 295 71 0 32,022
Royal Sheba 165 0 0 206,750
Consort – 33-45PC 258 193 252 10,000
Consort – MMR 0 173 129 (new target area)
pillar development
8-3 # 327 253 900
Evander Mines: Developing the orebody - capital ore reserve projects
Y/E 30 June Y/E 30 June Y/E 30 June Potential resource
Project
2015 (m) 2014 (m) 2013 (m) target (oz)
2 Decline 24–25 Level 904 685 554
1,200,000
25 A block ventilation 10 925 124
Growth projects:
An internal technical team from Evander Mines has been assigned to assess the merits of progressing
the Evander South Project to the level of a feasibility study. The Evander South Project is a
potentially attractive mining opportunity whereby the Kimberley reef can be exploited at shallow
depths, commencing at 300m below surface.
In light of the positive results of the Evander Tailings Retreatment Plant, the Company is progressing
studies on the viability of constructing “Elikhulu”, a tailings retreatment plant which can potentially
treat slimes at a processing capacity of up to 12 million tonnes per annum at a head grade of 0.28g/t
from the Winkelhaak, Leslie and Kinross tailings storage facilities. The total mineral resource for
Elikhulu is 165Mt at 0.28g/t (1.5Moz).
The Sheba and New Consort tailings dams will provide potential future sources of tailings which will
support the increased Barberton Tailings Retreatment Plant (“BTRP”) life of operation to 15 years
(2014: 12 years). The BTRP has a mineral reserve of 0.6Moz (13.4Mt at 1.5 g/t). The BTRP payback
period was 18 months from commissioning on 1 July 2013, therefore the increase in the BTRP life of
operation is expected to result in further surplus free cash flows.
Reporting in compliance with SAMREC Code
To meet the requirement of the South African Code for the Reporting of Exploration Results, Mineral
Resources and Mineral Reserves ("SAMREC Code") that the material reported as a Mineral Resource
should have "reasonable and realistic prospects for eventual economic extraction", Pan African
Resources has determined an appropriate cut-off grade which has been applied to the quantified
mineralised body. In determining the cut-off grade, Pan African Resources uses a gold price of R500
000/kg. At our underground mines, the optimal cut-off is defined as the lowest grade at which an
orebody can be mined such that the total profits, under a specified set of mining parameters, are
maximised. The Mineral Resource optimiser tool that was accordingly developed in-house was
applied to the Mineral Resource inventory.
The optimiser programme requires the following inputs to convert the Mineral Resource to the
Mineral Reserve:
- the database inventory of all mineral resource blocks;
- an assumed gold price - ZAR400 000/kg;
- planned production rates for each mine;
- mine call factor;
- plant recovery factors; and
- planned cash operating costs and other efficiency factors, which are calculated using
historical achievements as a baseline.
The Mineral Reserves represent that portion of the Measured and Indicated Mineral Resources above
cut-off in the life of mine plan, and have been estimated after consideration of the modifying factors
affecting extraction. A range of disciplines has been involved at each mine in the life of mine
planning process including geology, surveying, planning, mining engineering, rock engineering,
metallurgy, financial management, human resources management and environmental management.
Note: Mineral Resources are inclusive of the Mineral Reserve, unless otherwise stated. Rounding of
numbers contained in this announcement may result in minor computational discrepancies.
Competent Person
The competent person for Pan African Resources, Mr Barry Naicker, the group Mineral Resource
Manager, signs off the MR&MR for the Group and has reviewed and approved the information
contained in this announcement in writing. He is a member of the South African Council for Scientific
Professions (400234/10). Mr Naicker has 14 years of experience in economic geology and mineral
resource management.
He is based at 1st Floor, The Firs, cnr. Cradock and Biermann Avenues, Rosebank, 2196, Gauteng.
Contact Details
Corporate Office
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office: + 27 (0) 11 243 2900
Facsmile: + 27 (0) 11 880 1240
Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office: + 44 (0) 207 796 8644
Facsmile: + 44 (0) 207 796 8645
Cobus Loots Deon Louw
Pan African Resources PLC Pan African Resources PLC
Chief Executive Officer Financial Director
Office: + 27 (0)11 243 2900 Office: + 27 (0) 11 243 2900
Phil Dexter John Prior / Paul Gillam / James Black
St James's Corporate Services Limited Numis Securities Limited
Company Secretary Nominated Adviser & Joint Broker
Office: + 44 (0)207 796 8644 Office: +44 (0)207 260 1000
Sholto Simpson Matthew Armitt / Ross Allister
One Capital Peel Hunt LLP
JSE Sponsor Joint Broker
Office: + 27 (0)11 550 5009 Office: +44 (0)020 7418 8900
Julian Gwillim Daniel Thöle
Aprio Strategic Communications Bell Pottinger PR
Public & Investor Relations SA Public & Investor Relations UK
Office: +27 (0)11 880 0037 Office: + 44 (0)203 772 2500
www.panafricanresources.com
Date: 15/09/2015 05:00:00 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.
Sharenet Sites 
