Business
Results of Drilling Programme at Bramber Tailin...
Results of Drilling Programme at Bramber Tailin....
About this update from Pan African Resources Plc
[{"type":"text","content":"\n \nPan African Resources PLC\n\n(`Pan African' or the 'Company' or the `Group')\n\nIncorporated and registered in England and Wales under Companies Act 1985 with\nthe registered number: 3937466 on 25 February 2000\n\nShare Code on AIM: PAF\n\nShare code on JSE: PAN\n\nISIN: GB0004300496\n\nEncouraging results of drilling programme at Bramber tailings dam at Barberton\nMines (Pty) Ltd\n\nPan African Resources PLC (`Pan African'), the African focused precious metals\nproducer, announces the results of a drilling programme on the Bramber tailings\ndam at Barberton Mines (Pty) Ltd (`Barberton Mines').\n\nHighlights:\n\n- Indicated mineral resource declared of 148koz (3.130Mt @ 1.47g/t in situ)\nindependently verified at a cut off grade of 0.5g/t\n\n- Initial metallurgical test work indicates recoveries of 45% to 55%\n\n- Order of Magnitude (`OME') study estimates capital for the project for a\nCarbon-in-Leach plant at ZAR120 million (approximately £11m) to treat 1.2Mt of\ntailings per annum at Barberton Mines for a period of approximately three years\n\n- An additional 9Mt of dump material is currently being investigated that could\nincrease the life of project (`LOP') from three years to ten years\n\n- If viable this project could increase production at Barberton Mines by\nanother 20koz per annum over the LOP\n\n- Feasibility study on the project will be completed by Q2 of 2011/12 financial\nyear\n\nJan Nelson, Chief Executive Officer of Pan African, commented: \"We are very\nencouraged by these results that show that the re-treatment of tailings at\nBarberton Mines is developing into a significant stand alone gold project. Not\nonly could it increase the current production profile of the Company by 20koz\nper annum but also increase the operating margin and reduce unit costs. The\nproject at a 10% real discount rate yields a net present value of approximately\nZAR350 million with an internal rate of return of approximately 85% assuming a\ngold price of ZAR300,000/kg. We continue to focus on organic growth\nopportunities within the Group to grow our earnings.\"\n\nThe Bramber tailings dam, which has been used as a tailings storage facility at\nBarberton Mines since 1986, reached the end of its operational life in January\n2011. A new tailings facility was commissioned at that time. Due to the current\nhigh gold price and low cos...