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
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