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Pan African Resources initiates gold exploration programme in the Republic of the Sudan
Pan African Resources PLC
(Incorporated and registered in England and Wales under the Companies Act 1985 with registered
number 3937466 on 25 February 2000)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
ADR ticker code: PAFRY
(“Pan African” or the “Company” or the “Group”)
PAN AFRICAN RESOURCES INITIATES GOLD EXPLORATION PROGRAMME IN THE REPUBLIC OF THE SUDAN
Pan African is pleased to advise shareholders that the Group has secured five prospecting concessions
(or exploration licences) in north-eastern Sudan (the Block 12 concessions), covering an area of almost
1,100km2 and located approximately 70km northwest of Port Sudan. The Group was awarded the
licences by Sudan’s Ministry of Minerals for a period of three years, with the option to renew for a
further two years.
Further details on the Block 12 concessions are as follows:
- Exploration rights to five individual highly prospective areas were obtained in the Arabian-
Nubian Shield (ANS) and more specifically the Nakasib Suture Zone (NSZ). These blocks
comprise Block 12A and B (394km2); Block 12D (189km2); Block 12E (298km2) and Block 12K
(200km2)
- The concessions are located within close proximity to Port Sudan, a regional trading and
shipping hub
- Block 12 and the regional area contains a large number of artisanal workings and gold tolling
operations
- 14 rock samples obtained during site reconnaissance yielded an average grade of 13.6g/t, as
depicted in the table below:
Sample ID Type Lithology Au (g/t)
I8201 Rock Quartz vein 0.1
I8202 Rock Quartz vein 1.2
I8203 Rock Phyllite 0.2
I8204 Rock Quartz vein 0.9
I8205 Rock Quartz vein 0.0
I8206 Rock Quartz vein <0.01
I8207 Rock Quartz vein 2.1
I8208 Rock Quartz vein 3.4
I8209 Rock Quartz vein 0.3
I8210 Rock Quartz vein 1.8
I8211 Rock Quartz vein 145.0
I8212 Rock Quartz vein 32.5
I8213 Rock Diorite 2.2
I8214 Rock Mud 0.6
Average 13.6
- Exploration spend will be phased, with limited expenditure of approximately US$2.5m
expected to be incurred during the 2022 financial year.
Block 12 and the Exploration Programme
The Block 12 concession areas were selected following a detailed due diligence analysis by Pan
African’s technical team, which included site reconnaissance visits in Sudan and detailed desktop
studies, which were used to inform the Company’s exploration strategy.
Ten initial target areas have been identified for further exploration, based on the size, extent of
artisanal workings, presence of alluvial workings and associated tailings, prospectivity and upside
potential. Block 12 is located on the same suture zone as the Hassai Gold Mine, which is the largest
gold producer in Sudan, with historic production of some 0.1 Moz per year. On 31 December 2011,
the previous operators of the Hassai Gold Mine reported Proven and Probable Mineral Reserves of
5.5Mt grading 2.3g/t, with Measured and Indicated Mineral Resources of 6.5Mt, grading 2.5g/t and
Inferred Mineral Resources of 2.8Mt, grading 2.8g/t.
The Company’s concession areas are sparsely populated and arid, with rugged topography in places,
varying between 100m and 1,750m above sea level. Block 12 has undergone limited modern
exploration in the past, which consisted mainly of soil and grab samples, channel sampling and
trenching on a few targets, and shallow drilling.
Exploration activities in Sudan are expected to commence in the second calendar quarter of 2022 to
verify the results for the initial identified targets and endeavour to identify additional targets. The
Group has embarked on a phased approach for its exploration work programmes, with the budgeted
expenditure allocated for the first financial year estimated at US$2.5 million.
Geology and mineralisation
Block 12 is located within the ANS, where gold has been mined for over 5,000 years. The ANS formed
during the Pan African orogeny that occurred between 500 million and 900 million years ago (Ma) and
consists of a number of terrains that are separated by suture zones which are represented by wide
shear zones. Pan African’s concession area straddles the NSZ, a structure that is host to the Hassai
Gold Mine, which exploits a number of Volcanogenic Massive Sulphide (VMS) deposits and quartz
veins. The area is dominantly underlain by metamorphosed volcanic and volcaniclastic rocks, as well
as a number of intrusive phases including syn-orogenic diorites and late-stage orogenic granite.
Numerous styles of gold mineralisation have been identified in the concession areas, including:
1. Alluvial/placer gold:
These deposits are currently being worked by artisanal miners as the gold is easily extracted
from the alluvial sands, having been liberated from in situ gold veins by mechanical breakdown
from weathering.
2. Orogenic gold and VMS:
This orogenic gold mineralisation is associated with narrow, sub-vertical quartz veins (typically
10cm to 100cm wide) and may extend for tens or even hundreds of metres. Gold values are
reportedly high and crushing and panning operations observed in the field confirm these
reports. Three principle mineralised trends have been identified in the concession areas,
where the quartz vein sets form as a number of widely spaced individual veins that would lend
themselves to shallow underground mining, while the broader mineralised zones observed
may represent potential open-cast targets.
The gold associated with VMS deposits, including at the Hassai Gold Mine, is predominantly
stratiform accumulations of sulphide minerals that precipitated from hydrothermal fluids on
or below the seafloor in a wide range of ancient and modern geological settings.
About Sudan
Sudan produced approximately 90 tonnes of gold in 2021, making it the third largest gold producer in
Africa after Ghana and South Africa, and the tenth largest producer in the world with production in
2021 – equivalent to Peru’s gold production.
Despite the recent political unrest in Sudan’s capital city of Khartoum, mining producers and
developers have been able to continue operating uninterrupted in the country.
Cobus Loots, Pan African’s CEO commented: “Our management team has been visiting Sudan for the
last two years to identify prospective gold mining sites. We believe that the Block 12 concessions are
highly prospective, and we look forward to reporting exploration results from these properties in due
course. Our exploration programme will be phased, with expenditure of approximately US$7m
expected to be incurred during the first three years, to ensure we limit the Group’s financial risk.
Furthermore, before making any material investment decisions we would need to be comfortable with
the country’s operating environment.
Recently announced investments in Sudan by other international mining companies, including Perseus
Mining’s recently announced US$155 million acquisition of Orca Gold, validates our views on the
region’s prospectivity for gold exploration and mining.
In the medium to longer term, these Sudanese exploration activities have the potential to further add
production growth to Pan African’s already impressive project pipeline.”
The information contained in this update is the responsibility of the Pan African board of directors and
has not been reviewed or reported on by the Group’s external auditors.
Rosebank
14 March 2022
For further information on Pan African, please visit the Company's website at
www.panafricanresources.com
Corporate information
Corporate office Registered Office
The Firs Office Building Suite 31
2nd Floor, Office 204 Second Floor
Corner Cradock and Biermann Avenues 107 Cheapside
Rosebank, Johannesburg London
South Africa EC2V 6DN
Office: + 27 (0) 11 243 2900 United Kingdom
info@paf.co.za Office: + 44 (0) 20 7796 8644
Chief executive officer Financial director
Cobus Loots Deon Louw
Office: + 27 (0) 11 243 2900 Office: + 27 (0) 11 243 2900
Head: Investor relations Website: www.panafricanresources.com
Hethen Hira
Tel: + 27 (0)11 243 2900
E-mail: hhira@paf.co.za
Company secretary Nominated Adviser and Joint Broker
Phil Dexter/Jane Kirton Ross Allister/Alexander Allen
St James's Corporate Services Limited Peel Hunt LLP
Office: + 44 (0) 20 7796 8644 Office: +44 (0) 20 7418 8900
JSE Sponsor Joint Broker
Ciska Kloppers Thomas Rider/Nick Macann
Questco Corporate Advisory Proprietary Limited BMO Capital Markets Limited
Office: + 27 (0) 11 011 9200 Office: +44 (0) 20 7236 1010
Date: 14-03-2022 08:57:00
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