2014 Abridged Mineral Resource & Mineral Re...
3 September 2014
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")
2014 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 2014 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 reserve statement as at 30 June 2014
has been provided below.
Overview
* 0.9Moz or 9.8% gross annual increase in Group gold reserves to 10.1Moz
(2013: 9.2Moz)
* 1.6Moz or 4.5% decrease in Group gold resources to 33.5Moz (2013: 35.1Moz)
* 0.2Moz or 67% increase in Group PGE reserves to 0.5Moz (2013: 0.3Moz)
* 0.1Moz or 14% decrease in Group PGE resource to 0.6Moz (2013: 0.7Moz)
* Exploration drilling and work to increase access and development of
orebodies at the Group's key projects progressed and has added incremental
resource ounces
* Ongoing conversion of resources to reserves expected to continue to
increase life of mine production profiles
Gold
Group Gold Mineral Resources
The Group's attributable gold Mineral Resources decreased from 35.1 million
ounces ("Moz") in June 2013 to 33.5Moz in June 2014, equating to an annual
decrease of 1.6Moz, or 4.5%. 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 2014
Tonnes Grade Contained gold
Category (million) (g/t) Kg Moz
Mineral Resource
Measured 6.3 10.67 66 958 2.1
Indicated 277.3 2.23 645 929 20.8
Inferred 42.7 7.74 330 126 10.6
Pan African Total 326.3 3.20 1 043 015 33.5
Resources
The decrease in Mineral Resources can be attributed to a lower gold price and
inflationary cost drivers in the reporting of the 2014 Mineral Resources. The
0.3Moz positive variance in contained gold at Barberton Mines was a result of
adding new surface resources and extending the MRC orebody on Fairview Mine.
Group Gold Mineral Reserves
The Group's attributable Mineral Reserves increased from 9.2Moz in June 2013 to
10.1Moz in June 2014 - an annual increase of 0.9Moz, or 9.8%. Of this variance,
0.6Moz increase can be attributed to Barberton Mines and a 0.3Moz increase to
Evander Mines.
As at 30 June 2014
Tonnes Grade Contained gold
Category (million) (g/t) Kg Moz
Mineral Reserve
Proved 3.8 7.38 27 826 0.9
Probable 83.6 3.41 286 103 9.2
Pan African Total 87.6 3.58 313 929 10.1
Resources
The total increase in the Mineral Reserves can be attributed to the conversion
of Mineral Resources of Evander No. 8 - 26 level and at Barberton the Fairview
Mine extension of MRC orebody and the inclusion of New Consort and Sheba Mine
tailings dams.
Platinum Group Elements ("PGE")
Group PGE Mineral Resources
The Group's attributable PGE Mineral Resources decreased from 0.7Moz in June
2013 to 0.6Moz in June 2014 - an annual decrease of 0.1Moz or 14%. This
decrease can be attributed to a lower Mineral Resource declared from the IFM
Lesedi Mine (current arisings) and the treatment of the Buffelsfontein dumps.
As at 30 June 2014
Tonnes Grade Contained PGE's
Category (million) (g/t) Kg Moz
Mineral Resource
Measured 1.8 2.58 4 559 0.1
Indicated 3.3 3.56 11 574 0.4
Inferred 0.9 3.05 2 833 0.1
Pan African Total 6.0 3.19 18 966 0.6
Resources
Group PGE Mineral Reserves
The Group's attributable PGE Mineral Reserves increased from 0.3Moz in June
2013 to 0.5Moz in June 2014 - an annual increase of 0.2Moz or 67%. This
significant increase can be attributed to the re-stating of the modifying
factors in the Mineral Reserve of Phoenix Platinum.
As at 30 June 2014
Tonnes Grade Contained PGE's
Category (million) (g/t) Kg Moz
Mineral Reserve
Proved 1.8 2.58 4 559 0.1
Probable 3.2 3.56 11 574 0.4
Pan African Total 5.0 3.21 16 133 0.5
Resources
Group organic growth
Current exploration drilling as well as accessing and developing of the orebody
were maintained during the year. The strategy of converting Mineral Resource to
Mineral Reserve was progressed by moving organic projects further up the mining
value chain towards commissioning. The tables below reflect the progress of
near-mine growth projects that have contributed ounces to the Mineral Resource
for the year.
Group: Exploring the orebody - exploration drilling
Operation Total No. of Average No. of Average Total
metres grade
boreholes channel Intersections expenditure
width above cut-off
(cm) (g/t) (Rm)
Barberton Mines 11 993 150 121 93 24.52 7.9
Evander Mines 732 22 22 0 14.65 0.54
Phoenix Platinum - - - - - -
Group: Accessing the orebody - on-reef development
Operation Total on-reef development (metres) Average grade (g/t)
Barberton Mines 1 656 4.31
Evander Mines 1 015 43.11
Phoenix Platinum - -
Barberton Mines: Developing the orebody - capital ore reserve projects
Project 2014 2013 2012 Potential
resource
target
(metres) (metres) (metres) (oz)
Sheba - pillar development 351 317 2 006
Sheba - Edwin Bray to Thomas and 171 102 303 13 286
Joe's Luck area
Fairview - 11 Level Royal Reef Equipping 0.1 17 000
Fairview - 1# ore reserve opening 154 179 14 821
Fairview - 3 Shaft deepening 0 228 109 1 600
Fairview - 62 Level 295 601 552 253
New Consort - 40 Level 193 252 267 10 000
New Consort - 50 Level Decline west 0 150 197 26 000
New Consort - MMR pillar development 173 129 (new target
area)
New Consort - 3 Shaft 253 900
Sheba Western Cross 71 44 263
Evander Mines: Capital ore reserve projects
Project 2014 2013 2012 Potential
resource
target
(metres) (metres) (metres) (oz)
2 Decline 24 - 25 Level 686 554 778 1 200 000
25 A block ventilation 925 124 0
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 (MCF)
* 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 LOM 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 LOM planning process
including geology, surveying, planning, mining engineering, rock engineering,
metallurgy, financial management, human resources management and environmental
management.
Phoenix Platinum, BTRP and the ETRP are optimised on a 100% extraction plan on
their Mineral Reserves. No selectivity was applied on tonnages and thus no
cut-off grades were determined.
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 13 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.
Pan African Resources Enquiries
Ron Holding Cobus Loots
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 Neil Elliot / Peter Stewart
St James's Corporate Services Canaccord Genuity Limited
Limited
Company Secretary Nominated Adviser and Joint Broker
Office: + 44 (0) 207 499 3916 Office: +44 (0)207 523 8350
Matthew Armitt / Ross Allister Sholto Simpson
Peel Hunt LLP One Capital
Joint Broker JSE Sponsor
Office: +44 (0)020 741 8900 Office: + 27 (0) 11 550 5009
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
For further information on Pan African Resources, please visit the website at
www.panafricanresources.com
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