Wrap Text
Update on Barberton Mines’ Royal Sheba Project
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” or the “Group”)
UPDATE ON BARBERTON MINES’ ROYAL SHEBA PROJECT (“ROYAL SHEBA”)
Shareholders are referred to previous announcements relating to Royal Sheba, specifically, the
announcement of 6 September 2018 pertaining to the update on the exploration drilling programme
and the Mineral Resource Estimate (“MRE”). The Group has finalised the exploration drilling
programme on the Royal Sheba project and can now provide an updated MRE, signed off by an
independent mining consultant - SRK Consulting (South Africa) Pty Ltd (“SRK”) in accordance with
the South African Code for the Reporting of Exploration Results, Mineral Resource and Mineral
Reserve, 2016 edition (the “SAMREC Code”). The exploration results have exceeded expectations
and the salient features of the updated MRE are as follows:
- Royal Sheba’s total Mineral Resources declared and independently signed off by SRK at
0.8Moz (8.97Mt at 2.62g/t);
- A 6% increase in the near surface Mineral Resource from 0.35Moz (2.84Mt at 3.81g/t) to
0.37Moz (5.85Mt at 1.96g/t). The updated MRE is considered conservative, exhibiting a high
level of confidence, and the Company believes there is further exploration upside;
- The near surface Mineral Resource of 0.37Moz is conducive to open-pit mining;
- The Royal Sheba Project’s near surface drilling programme (Phase 1, 2 and 3, totalling
4,311.6m of drilling) confirms robust mineralisation extending from the surface along a 900m
strike and 150m down dip of the Royal Sheba orebody;
- Summarised drilling results confirms the mineralisation ranges in a width from 5m to 25m with
in-situ gold grades ranging between 0.5g/t to 376g/t and averaging 3.14g/t;
- The underground Mineral Resource is delineated at 0.39Moz (3.12Mt at 3.87g/t) and;
- The Definitive Feasibility Study (“DFS”) undertaken by DRA Global (Pty) Ltd (“DRA”) is
progressing well and is expected to be completed in February 2019.
The Company has commenced an extended exploration drilling programme at Barberton Mines’
mining right at New Consort Mines, targeting the Main Maiden Reef (“MMR”) orebody as a potential
satellite deposit for the Royal Sheba project.
Pan African CEO Cobus Loots commented:
“Pan African is very pleased with the outcome of our in-fill drilling programme and the updated
Mineral Resource Estimate for the Royal Sheba Project. The drilling programme has
confirmed that the orebody extends to surface, with the potential to establish a new open pit
mining operation, which will transition to an underground mining operation only after a number
of years. The scale and grade of the Royal Sheba Mineral Resource gives us confidence to
advance the near-surface mineral resource to a definitive feasibility study status, which DRA
is currently undertaking, with this full study expected in February 2019.
We are excited by the further prospectivity of our mining lease specifically New Consort,
where drilling has recently commenced to identify similar near-surface mineral resources at
the Main Maiden Reef orebody, targeting 0.2Moz to 0.3Moz at an in-situ grade of between
2g/t and 4g/t.
Royal Sheba’s opencast has the potential to sustainably increase production from our flagship
Barberton operations at a very competitive cost, further bolstering Pan African’s low cost,
long-life asset portfolio. In conjunction with the feasibility process, we have commenced work
on planning and permitting. We look forward to working with all stakeholders in advancing this
project, to the benefit of all our stakeholders – including our shareholders, the Mpumalanga
province and the greater Barberton area.”
MRE results
Project geology
The Royal Sheba orebody is associated and aligned along the prominent regional shear zone of the
Sheba Fault, within the north-western quadrant of the Archaean - aged Barberton Greenstone Belt.
The Sheba Fault juxtaposes the Fig Tree Group’s deep marine sediments, namely the greywacke
and banded chert and carbonatised shale in the Ulundi Syncline, adjacent to the shallow marine
sediments of the Moodies Group in the Eureka Syncline.
The mineralisation of the Royal Sheba orebody is encapsulated in a shear envelope of the Sheba
Fault, ranging in width from 5m to 25m. The gold mineralisation occurs predominantly in sulphide
minerals and as native gold. In-situ gold grades range up to 376g/t averaging 3.14g/t. The Royal
Sheba orebody has a potential strike length of more than 900m and the down dip extension has been
drill tested to a depth of 600m and remains open. The Royal Sheba orebody is therefore open ended
along strike and down dip.
Drilling results
Full composite Significant intersection
Intersection Corrected Average Corrected Average
depth Intersection intersected grade intersected grade
Drillhole downhole depth below width intersected width intersected
Number (m) collar (m) (m) (g/t) (m) (g/t)
RSPE001 34.75 31.49 11.50 3.38 0.65 19.16
RSPE002 56.63 51.32 9.89 2.53 3.28 5.10
RSPE003 24.34 22.06 12.94 0.91 1.36 2.31
RSPE004 47.32 42.89 6.28 1.36 0.62 5.96
RSPE005 26.34 23.87 15.59 1.91 0.34 9.96
RSPE006 35.02 31.74 8.77 1.41 3.50 2.98
RSPE007 26.73 24.23 14.17 1.38 2.13 5.45
RSPE008 6.97 6.32 13.60 3.17 1.81 12.79
RSPE009 69.56 63.04 11.48 6.10 1.73 30.43
RSPE010 25.54 23.15 8.01 0.63 1.00 2.12
RSPE011 38.70 35.07 8.33 0.72 1.05 1.83
RSPE012 24.05 19.70 24.05 1.53 2.42 6.35
RSPE013 67.91 61.55 10.97 2.67 5.96 3.37
RSPE014 42.88 35.13 7.83 1.50 3.80 2.51
RSPE015 60.23 13.55 8.51 0.62 1.60 2.32
RSPE016 84.59 10.31 13.85 1.38 3.11 3.12
RSPE017 68.87 49.54 15.98 0.84 1.83 2.22
RSPE018 105.10 89.13 21.54 0.25 0.91 1.01
RSPE019 56.96 18.54 18.60 0.47 0.30 4.97
RSPE020 92.54 67.68 8.84 0.33 1.23 1.71
RSPE026* 153.55 26.66 6.27 0.52 1.93 1.07
RSPF001 105.00 95.16 4.32 0.68 1.07 1.37
RSPF004 54.10 49.03 9.54 0.20 0.39 1.00
RSPF005 45.50 41.24 7.52 0.15 0.29 0.76
RSPF006 53.73 48.70 8.73 0.35 0.31 1.32
RSPF010* 110.22 99.89 32.62 0.13 0.35 0.82
RSPF011* 98.30 89.09 1.76 0.39 0.37 0.76
RSPF012* 150.73 136.61 8.07 0.20 0.76 0.77
RSPF014* 137.98 125.05 6.86 0.64 0.75 2.85
RSPF016* 74.53 67.55 8.10 0.23 0.40 0.32
* Drill holes not incorporated into the updated MRE due to the assaying results being released after completion of
the MRE. The assay results of an additional nine drill holes’ assay results are still outstanding. All drill hole results
will be incorporated into the annual Mineral Resource update.
The in-fill drilling programme of 4,311.6m (Phase 1, 2 and 3) comprising 39 drill holes was completed
in November 2018. The 25 drill-hole results presented above were used in the updated MRE,
confirming robust mineralisation extending from surface over a strike length of more than 900m at
grades above economic break-even concentrations (0.5g/t).
Mineral Resource
SRK audited the updated geological model and MRE for the Royal Sheba Project and is of the
opinion that the Mineral Resource statement, as tabulated below, effective 27 November 2018, is a
reasonable representation of the in-situ grade, tonnage and metal content as contained in the
mineralised envelope. Mr. Ivan Doku, who is responsible for the audit on behalf of SRK, has signed
off on the Mineral Resource statement below.
The following new Mineral Resource tabulation has been reported from the 3D geological model and
resource block model, using a 0.5g/t cut-off grade for near-surface ore (within a ZAR 600 000 per
kilogram of gold Whittle pit shell at a revenue factor of 1.5) and 1.7g/t for down-dip extensions to be
mined from underground workings. The underground Mineral Resource excludes a 30m crown pillar
beneath the pit and is reported within the modelled mineralisation envelope based on current drill
holes available.
Contained gold
Tonnes Grade Tonnes Ounces
As at 30 June 2018 Category
(Million) (g/t) (Gold) (K’oz)
Measured 3.10 2.10 6.52 210
Open-pit Mineral Resource
(0.5g/t cut-off)
Indicated 2.32 1.84 4.28 138
Inferred 0.43 1.56 0.67 22
Total 5.85 1.96 11.47 369
Measured 0.95 3.62 3.45 111
Indicated 1.52 4.24 6.46 208
Underground Mineral
Resource (1.7g/t cut-off)
Inferred 0.64 3.38 2.16 69
Total 3.12 3.87 12.07 388
Resources Total 8.97 2.62 23.54 757
Mineral Resources are reported in accordance to the South African Code for the Reporting of
Exploration Results, Mineral Resources and Mineral Reserves (SAMREC) Code. Mineral Resources
would be the same if it is reported according to the guidelines of the Canadian Institute of Mining’s
(CIM) National Instrument 43-101. Cut-off values are calculated at 0.5g/t and 1.7g/t for open-pit and
underground Resources, respectively, applying a gold price of ZAR 600 000/kg (USD 1 435/oz and
ZAR 13.00/1 USD). Mineral Resources are reported inclusive of Mineral Reserves. Open-pit Mineral
Resources are reported within an optimised ZAR 600 000 per kg Au pit shell with a revenue factor of
1.5. All Mineral Resources reported exclude geological structures and a crown pillar of 30m below the
open-pit shell. Mineral Resources are reported as in-situ tonnes. Any discrepancies in totals are due
to rounding. Additional effects of geological, mining and recovery losses have been considered in the
cut-off grade calculations.
Exploration
The Company has achieved its objective of generating 0.37Moz (5.85Mt and 1.96g/t) near-surface
Mineral Resources for the Royal Sheba Project and is now exploring the Jamestown Shear Zone,
within the New Consort mining right for near-surface Mineral Resources. The exploration team is
excited to advance the prospective MMR orebody at New Consort. This brownfield project targets
near-surface mineral resource definition drilling to yield between 0.2Moz to 0.3Moz, at grades
between 2g/t and 4g/t.
The exploration programme comprises of two phases. Phase 1 drilling commenced on 13 November
2018 and will comprise 10 drill holes, totalling 1,035m, testing 600m of strike length and 200m of dip
extension of the MMR orebody and the associated Consort Bar. Phase 2 will comprise a further 11
drill holes, totalling 1,350m, which will test a further 500m of westerly strike and dip extension of the
MMR deposit.
Several historic satellite deposits have also been identified in the Jamestown Shear Zone and Sheba
Hills namely the Bluejackets, Betty, Hard Cash and No. 3 Shaft orebodies, as well as Clutha, Golden
Quarry, Oriental Quarry, Eureka, Margaret and Sheba West for resource definition drilling.
Next steps
A DFS for the development of the Royal Sheba Project is being undertaken by DRA which is
progressing well and is expected to be completed in February 2019. Pan African has also started with
the process of obtaining the regulatory permitting required for the project.
The information contained in this announcement has not been reviewed or reported on by Pan
African’s auditors and is the responsibility of the directors of Pan African.
The competent person for the Mineral Resource is Mr Hendrik Pretorius, the Group Project Geologist,
who signs off the Mineral Resources for Evander Mines and Barberton Mines Limited. He is a
member of the South African Council for Scientific Professions (400051/11 – Management Enterprise
Building, Mark Shuttleworth Street, Innovation Hub, Pretoria, Gauteng Province, South Africa), as well
as a member in good standing of the Geological Society of South Africa (GSSA – CSIR Mining
Precinct, Corner Rustenburg and Carlow Roads, Melville, Gauteng Province, South Africa). Mr
Pretorius has 15 years of experience in economic geology and mineral resource management (MRM).
Mr Pretorius holds a BSc. (Hons) degree in Geology from the University of Johannesburg as well as a
Graduate Diploma in Engineering (GDE) from the University of the Witwatersrand. He is based at The
Firs Office Building, 2nd Floor, Office 204, Cnr. Cradock and Biermann Avenues, Rosebank,
Johannesburg, South Africa. Mr Pretorius has confirmed in writing that he has reviewed the
information disclosed in this announcement, which is compliant with section 12 of the JSE Listings
Requirements and Table 1 of the SAMREC Code, and that it may be published in the form and
context in which it is intended.
For further information on Pan African, please visit the Company’s website at
www.panafricanresources.com
30 November 2018
Contact information
Corporate Office Registered Office
The Firs Office Building Suite 31
1st Floor, Office 101 Second Floor
Cnr. Cradock and Biermann Avenues 107 Cheapside
Rosebank, Johannesburg London
South Africa EC2V 6DN
Office: + 27 (0) 11 243 2900 United Kingdom
Facsimile: + 27 (0) 11 880 1240 Office: + 44 (0) 207 796 8644
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
St James's Corporate Services Limited Numis Securities Limited
Company Secretary Nominated Adviser and Joint Broker
Office: + 44 (0) 207 796 8644 Office: +44 (0) 20 7260 1000
Taryn Carter Ross Allister/James Bavister/David McKeown
One Capital Peel Hunt LLP
JSE Sponsor Joint Broker
Office: + 27 (0) 11 550 5000 Office: +44 (0) 207 418 8900
Julian Gwillim Jeffrey Couch/ /Thomas Rider
Aprio Strategic Communications BMO Capital Markets Limited
Public & Investor Relations SA Joint Broker
Office: +27 (0)11 880 0037 Office: +44 (0) 207 236 1010
Bobby Morse
Buchanan
Public & Investor Relations UK
Office: +44 (0)20 7466 5000
Email: PAF@buchanan.uk.com
Website: www.panafricanresources.com
Glossary of technical terms:
Au Chemical symbol for gold
Cut-off Grade The lowest grade value that is included in a
resource statement
Grade The proportion of a mineral within a rock or other
material. For gold mineralisation this is usually
reported as grams of gold per tonne of rock (g/t)
g/t Grams per tonne
Indicated Mineral That part of a mineral resource for which tonnage,
Resource densities, shape, physical characteristics, grade
and mineral content can be estimated with a
reasonable level of confidence. It is based on
exploration, sampling and testing information
gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings
and drill holes. The locations are too widely or
inappropriately spaced to confirm geological and/or
grade continuity but are spaced closely enough for
continuity to be assumed
Inferred Mineral That part of a mineral resource for which tonnage,
Resource grade and mineral content can be estimated with a
low level of confidence. It is inferred from
geological evidence and assumed but not verified
geological and/or grade continuity. It is based on
information gathered through appropriate techniques
from locations such as outcrops, trenches, pits,
workings and drill holes that may be limited, or of
uncertain quality and reliability
Life of Mine The time in which, through the employment of the
available capital, the ore reserves--or such
reasonable extension of the ore reserves as
conservative geological analysis may justify--will
be extracted.
M Metre
Mineral Resource A concentration or occurrence of material of
economic interest in or on the Earth's crust in such
a form, quality, and quantity that there are
reasonable and realistic prospects for eventual
economic extraction. The location, quantity, grade,
continuity and other geological characteristics of a
Mineral Resource are known, estimated from specific
geological knowledge, or interpreted from a well
constrained and portrayed geological model
Measured Resource That part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade
and mineral content can be estimated with a high
level of confidence. It is based on detailed and
reliable exploration, sampling and testing
information gathered through appropriate techniques
from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are spaced
closely enough to confirm geological and grade
continuity
Moz Million troy ounces
Orebody Mining term to define a solid mass of mineralised
rock which can be mined profitably under current or
immediately foreseeable economic conditions. "Ore" a
mineral deposit that can be extracted and marketed
profitably
Ore Reserves The economically mineable part of a Measured or
Indicated Mineral Resource demonstrated by at least
a Preliminary Feasibility Study. This Study must
include adequate information on mining, processing,
metallurgical, economic and other relevant factors
that demonstrate, at the time of reporting, that
economic extraction can be justified. A Mineral
Reserve includes diluting materials and allowances
for losses that may occur when the material is mined
Ounce / oz Troy ounce, equivalent to 31.103477 grams
Probable Mineral The economically mineable part of an Indicated and,
Reserve in some circumstances, a Measured Mineral Resource
demonstrated by at least a Preliminary Feasibility
Study. This Study must include adequate information
on mining, processing, metallurgical, economic, and
other relevant factors that demonstrate, at the time
of reporting, that economic extraction can be
justified
Proven Mineral Reserve The economically mineable part of a Measured Mineral
Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate
information on mining, processing, metallurgical,
economic, and other relevant factors that
demonstrate, at the time of reporting, that economic
extraction is justified
t Tonne (1-million grams)
Date: 30/11/2018 09:00:00 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 
