PAN AFRICAN RESOURCES PLC
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 Total 318.8 3.11 991,918 31.9
Resources
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 Total 84.9 3.79 321,952 10.4
Resources
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 Total 6.0 3.14 18,957 0.6
Resources
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 Tonnes Grade Contained PGE's
2015
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 (g expenditure
width above cut-off /t) (Rm)
(cm)
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
Project Y/E 30 June Y/E 30 June Y/E 30 June Potential
2015 (m) 2014 (m) 2013 (m) resource target
(oz)
Sheba - pillar 824 351 317 23,599
development
Sheba - Edwin 5 (equipping 171 102 13,246
Bray to Thomas incline shaft)
and Joe's Luck
area
Fairview - 11 0 (equipping 0 (equipping 0 17,000
Level Royal old main shaft) old main shaft)
Reef
Fairview - 1# 84 154 179 14,821
ore reserve
opening
Fairview - 3 26 0 228 1,600
Shaft deepening
Fairview - 447 295 601 840,704
64-68 Level
Sheba Western C 295 71 0 32,022
Royal Sheba 165 0 0 206,750
Consort - 258 193 252 10,000
33-45PC
Consort - MMR 0 173 129 (new target
pillar area)
development
8-3 # 327 253 900
Evander Mines: Developing the orebody - capital ore reserve projects
Project Y/E 30 June Y/E 30 June Y/E 30 June Potential
2015 (m) 2014 (m) 2013 (m) resource 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
PAN AFRICAN RESOURCES : 2015 Abridged Mineral Resource & Mineral Reserve Report
September 15, 2015 at 11:01 am EDT
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