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Pan African Resources PLC (PAF)

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Wednesday 22 June, 2011

Pan African Resources PLC

Resource Upgrade at Manica and Group Resource U...


 

22 June 2011

 

                           Pan African Resources PLC                           

                ('Pan African' or the 'Company' or the 'Group')                

Incorporated and registered in England and Wales under Companies Act 1985 with 
              the registered number: 3937466 on 25 February 2000               

                                                                               

                            Share Code on AIM: PAF                             

                            Share code on JSE: PAN                             

                              ISIN: GB0004300496                               

                                                                               

            Significant Resource upgrade at Manica Gold Project and            

                        Group Mineral Resource upgrade                         

                                                                               

 

Pan African Resources, the African focused precious metals producer, announces
a significant increase in the mineral resource for its Manica gold project in
Mozambique, an updated Group Mineral Resource statement as well as a declared
reserve statement for the Phoenix Platinum Mining (Pty) Ltd ('Phoenix
Platinum') project. This follows the significant increase in the mineral
resource and reserve at Barberton Mines (Pty) Ltd ('Barberton') as announced on
31 May 2011.

 

Highlights:

 

Manica Gold Project - Mineral Resource upgrade:

                                                 Increased Increased Percentage
                                                   from:      to:    Increase: 
                                                                               
Total mineral resource based on gold content      2.56Moz   2.99Moz     16%    
(50.554Mt at 1.82g/t in situ)                                                  
                                                                               
                                                                               
Total Measured & Indicated mineral resource       1.31Moz   1.38Moz      5%    
based on gold content (24.556Mt at 1.75g/t in                                  
situ)                                                                          
                                                                               
Inferred mineral resource based on gold content   1.25Moz   1.58Moz     26%    
(25.998Mt at 1.90g/t in situ)                                                  
                                                                               

 

Group Mineral Resource statement:

                                                 Increased Increased Percentage
                                                   from:      to:    Increase: 
                                                                               
Total mineral resource based on gold content      4.63Moz   5.67Moz     22%    
(63.150Mt at 2.79g/t in situ)                                                  
                                                                               
Total Measured & Indicated mineral resource       2.96Moz   3.43Moz     16%    
based on gold content (34.640Mt at 3.07g/t in                                  
situ)                                                                          
                                                                               
Inferred mineral resource based on gold content   1.67Moz   2.24Moz     33%    
(28.510Mt at 2.43g/t in situ)                                                  
                                                                               
Proved & Probable reserve based on gold content   661,000   1.00Moz     51%    
(3.830Mt @ 8,12g/t)                                                            
                                                                               

 

Phoenix Platinum - Proved and Probable Reserve

                                            Increased  Increased   Percentage  
                                              from:       to:      Increase:   
                                                                               
A Proved and Probable 4E* metal mineral         -      174,000oz      100%     
reserve is declared                                                            
                                                                               

 

* Platinum (56,6%), Palladium (27%), Rhodium (16%) and Gold (0,5%)

 

Jan Nelson, Chief Executive Officer of Pan African, commented: "The Manica
project now represents a 3Moz deposit, which is significant as there are not
many gold deposits in Africa in excess of 3Moz, which outcrop on surface.
Significant strike-length remains to be tested.

 

The Company continues to focus on the development of its organic pipeline of
projects to increase the profit margin that will, not only continue to grow the
value of the company, but also place the Company in a position to continue
paying a dividend. We see this as a sound strategy, especially in a market
where companies are overpaying on new acquisitions at inflated metal prices to
grow metal resources in the ground that potentially might never be brought to
account."

 

Manica Gold project - Mineral Resource upgrade

 

Over the past two years, a significant amount of work has been completed to
test the economic viability of the Manica project. A total geological
re-assessment of the mineralised envelopes has been undertaken, which has
resulted in the development of a new geological model. The result is that the
mineralised envelopes are being projected with greater geostatistical
confidence than before. The Company continues exploring optimum ways to bring
this project to account.

 

Group Mineral Resource upgrade

 

Of the total gold mineral inventory, Barberton Mines represents 48% or 2.70Moz
(12.600Mt @ 6.64g/t) and Manica 52% or 2.966Moz (50.554mt @ 1.82g/t). In terms
of volume, Barberton accounts for 16% (12.6Mt) and Manica for 84% (50.554Mt).
In terms of Measured & Indicated gold resource, Barberton accounts for 60% or
2.050Moz (10.090Mt @ 6.30g/t in situ) and Manica for 40% or 1,38Moz (24.556Mt @
1.75g/t in situ). In terms of Measured and Indicated volume, Barberton accounts
for 29% (10.090Mt) and Manica for 69% (24.556Mt).

 

Barberton accounts for the total gold reserve stated. No reserve is declared
for the Manica project. A Proved and Probable 4E* metal mineral reserve of
174Koz for the Phoenix platinum project is declared. Construction on the
Phoenix platinum project is underway and ahead of schedule and first production
of 4E metal is expected in Q2 of the 2011/12 financial year.

 

Pan African consolidated Mineral Resource Inventory as at 1 June 2011 - 100%                            
Attributable to Pan African                                                                             
                                                                                                        
(Gold operations and Manica projects)                                                                   
                                                                                                        

 

                                                                                      
                                                                                      
          RESOURCE                                RESERVE                             
          CATEGORY   MASS   GRADE CONTAINED GOLD  CATEGORY  MASS  GRADE CONTAINED GOLD
                                                                                      
                     (kt)   (g/t)   (kg)   (koz)            (kt)  (g/t)  (kg)   (koz) 
                                                                                      
          Measured   14,310  3.03   43,300  1,390 Proved    1,220  7.30   8,900    290
                                                                                      
Barberton Indicated  20,330  3.11   63,200  2,040 Probable  2,610  8.51  22,200    710
Mines and                                                                             
 Manica   Inferred   28,510  2.43   69,400  2,240                                     
                                                                                      
              Total  63,150  2.79  175,900  5,670 Total                               
                                                  Proved                              
 Total Measured and                               and                                 
          Indicated  34,640  3.07  106,500  3,430 Probable  3,830  8.12  31,100  1,000
                                                                                      

 

 

Note: Estimates of Mineral Resource and Mineral Reserve are not precise
calculations and errors may occur due to rounding.

* Pan African combined table compiled from signed off resource estimates for
all gold projects

 

 


 

 

 

 

 

 

Barberton Mines Resource and Reserve Estimate as at 1 June 2011      
                                                                     
                                                                     
                                                                     

 

                                                                                     
                                                                                     
          RESOURCE                               RESERVE                             
          CATEGORY   MASS   GRADE CONTAINED GOLD CATEGORY  MASS  GRADE CONTAINED GOLD
                                                                                     
                     (kt)   (g/t)  (kg)   (koz)            (kt)  (g/t)  (kg)   (koz) 
                                                                                     
          Measured    2,750  8.45  23,300    750 Proved    1,220  7.27   8,900    290
Barberton                                                                            
  Mines   Indicated   7,340  5.50  40,300  1,300 Probable  2,610  8.48  22,200    710
 Mineral                                                                             
Inventory Inferred    2,510  8.01  20,100    650                                     
                                                                                     
              Total  12,600  6.64  83,700  2,700 Total                               
                                                 Proved                              
Total Measured and                               and                                 
Indicated            10,090  6.30  63,600  2,050 Probable  3,830  8.12  31,100  1,000
                                                                                     

 

Note: Estimates of Mineral Resource and Mineral Reserve are not precise
calculations and errors may occur due to rounding.

Frans Chadwick, a member of the South African Council for Professional and
Technical Surveyors (PLATO) and an employee of Barberton Mines, has signed off
on the above Mineral Inventory for Barberton Mines.

 

 

 

 

MANICA MINERAL RESOURCE as at 1 June 2011 
                                          

 

                                                                        
                                                                        
  RESOURCE CATEGORY       PROJECT     MASS   GRADE CONTAINED GOLD       
                                                                        
                                      (kt)   (g/t)      (kg)      (koz) 
                                                                        
Per Category                                                            
                                                                        
                       Fairbride      11,561  1.73         19,978    642
                                                                        
                       Dots Luck         -     -              -      -  
                                                                        
Measured               Guy Fawkes        -     -              -      -  
                                                                        
                       Boa Esperanza     -     -              -     -   
                                                                        
                       Total          11,561  1.73         19,978    642
                                                                        
                       Fairbride      10,795  1.64         17,720    570
                                                                        
                       Dots Luck         -     -              -      -  
                                                                        
Indicated              Guy Fawkes      2,200  2.44          5,200    168
                                                                        
                       Boa Esperanza     -     -              -      -  
                                                                        
                       Total          12,995  1.76         22,920    738
                                                                        
                       Fairbride      24,598  1.83         45,075  1,449
                                                                        
                       Dots Luck         500  3.35          1,500     50
                                                                        
Inferred               Guy Fawkes        600  2.80          1,700     56
                                                                        
                       Boa Esperanza     300  2.96          1,000     31
                                                                        
                       Total          25,998  1.90         49,275  1,586
                                                                        
Total Mineral Resource                50,554  1.82         92,173  2,966
                                                                        
Total Measured, Indicated, Inferred                                     
                                                                        
                                                                        
                                                                        
Measured                              11,561  1.73         19,978    642
                                                                        
Indicated                             12,995  1.76         22,920    738
                                                                        
Inferred                              25,998  1.90         49,275  1,586
                                                                        
Total Mineral Resource                50,554  1.82         92,173  2,966
                                                                        
Total Measured and Indicated                                            
                                                                        
Measured                              11,561  1.73         19,978    642
                                                                        
Indicated                             12,995  1.76         22,920    738
                                                                        
Total M&I                             24,556  1.75         42,898  1,380
                                                                        

 

Note: Estimates of Mineral Resource and Mineral Reserve are not precise
calculations and errors may occur due to rounding.

Mineral Inventory signed off by B Northrop (Phd, Sci Nat, FSAIMM, FGSSA,
MGASA), ExplorMine

 

Total Phoenix Resource and Reserve Estimate as at 1 June 2011
                                                             

 

                                             MINERAL                                             MINERAL          
                                    4E METAL RESOURCE                                   4E METAL RESERVES         
                              MASS   GRADE   4E METAL          RECOVERY           MASS   GRADE   4E METAL         
                   RESOURCE                                             RESERVE                                   
     PROJECT       CATEGORY   (kt)   (g/t)     (kg)     (oz)     (%)    CATEGORY  (kt)   (g/t)     (kg)     (oz)  
                                                                                                                  
                               Surface Tailings                                                                   
                                                                                                                  
                   Measured     218     3,66      797   26,000      45% Proved      218     1,65      359   12,000
                                                                                                                  
  Buffelsfontein   Indicated                                        45% Probable                                  
  Tainlings Dams                                                                                                  
                   Inferred                                                                                       
                                                                                                                  
                       Total    218     3.66      797   26,000      45%    Total    218     1.65      359   12,000
                                                                                                                  
                   Measured   1,149     2.45    2,813   90,000      45% Proved    1,149     1.10    1,266   41,000
                                                                                                                  
   Elandskraal     Indicated    145     2.03      295    9,000      45% Probable    145     0.92      133    4,000
  Dumps and Pits                                                                                                  
                   Inferred      42     2.00       84    3,000                                                    
                                                                                                                  
                       Total  1,336     2.39    3,192  102,000      45%    Total  1,294     1.08    1,399   45,000
                                                                                                                  
                   Measured     260     2.00      520   17,000      45% Proved      260     0.90      234    8,000
                                                                                                                  
     Kroondal      Indicated     30     2.00       60    2,000      45% Probable     30     0.90       27    1,000
      Dumps                                                                                                       
                   Inferred     120     2.00      240    8,000                                                    
                                                                                                                  
                       Total    410     2.00      820   27,000      45%    Total    290     0.90      261    9,000
                                                                                                                  
Total Surface Tailings        1,964     2.45    4,809  155,000      45%    Total  1,802     1.12    2,018   66,000
                                                                                                                  
                               Current Arisings                                                                   
                                                                                                                  
                   Measured   1,597     3.66    5,845  188,000      45% Proved    1,597     1.65    2,630   85,000
  Buffelsfontein                                                                                                  
  Tainlings Dams   Indicated    443     3.66    1,622   52,000      45% Probable    443     1.65      730   23,000
                                                                                                                  
                   Inferred     642     3.66    2,348   75,000                                                    
                                                                                                                  
Total Current Arisings        2,682     3,66    9,815  316,000      45%    Total  2,040     1.65    3,360  108,000
                                                                                                                  
              Total Measured and Indicated (Proved and Probable)                                                  
                                                                                                                  
Surface Tailings & Measured   3,224      3.09   9,975  321,000      45% Proved    3,224     1.39    4,489  146,000
 Current Arisings                                                                                                 
                   Indicated    618      3.20   1,977   64,000      45% Probable    618     1.44      890   28,000
                                                                                                                  
Total                         3,842      3.11  11,952  384,000      45%    Total  3,842     1.40    5,378  174,000
                                                                                                                  
               Grand Total (Surface Tailings + Current Arisings)                                                  
                                                                                                                  
Total Surface and                                                                                                 
Current Arisings              4,646      3.15  14,624  470,000      45%    Total  3,842     1.40    5,378  174,000
                                                                                                                  

 

 

Note: Estimates of Mineral Resource and Mineral Reserve are not precise
calculations and errors may occur due to rounding.

Geologix MRC (Pty) Ltd is a South African Resources and Geological Consultancy
- Deon van den Heever is SACNASP accredited and was responsible for the
resource estimate.

Reserve conversion done by E Nel (Pr. Tech.Eng)(MBA), ENC Minerals

Overall mineral inventory checked and signed off by Venmyn Rand

The above resources are compliant with the South African Mineral Resources Code
('SAMREC').

 

 

 

 

 

Enquiries:

 

South Africa                             UK                                   
                                                                              
                                                                              
                                                                              
Pan African                              RBC Capital Markets                  
                                                                              
Jan Nelson, Chief Executive Officer      Martin Eales                         
                                                                              
+27 (0) 11 243 2900                      +44 (0) 20 7029 7881                 
                                                                              
                                                                              
                                                                              
Pan African                              St James's Corporate Services Limited
                                                                              
Nicole Spruijt, Public Relations         Phil Dexter                          
                                                                              
+27 (0) 11 243 2900                      +44 (0) 20 7499 3916                 
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
Macquarie First South Advisers (Pty) Ltd Gable Communications                 
                                                                              
Natalie Di-Sante/Melanie de Nysschen     Justine James                        
                                                                              
+27 (0) 11583 2000                       +44 (0)20 7193 7463                  
                                                                              

 

ENDS