Statement re Barberton Mines Resource Upgrade
31 May 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 Reserve Upgrade at Barberton Mines (Pty) Ltd
Pan African Resources PLC ('Pan African'), the African focused precious metals
producer, announces a significant increase in the resource and reserve for
Barberton Mines (Pty) Ltd ('Barberton Mines').
Highlights:
Barberton Mines - Mineral Resource and Reserve upgrade:
- Total mineral resource increased by 7% to 2,55Moz of gold (9,47Mt at 8,35g/t in
situ)
- Measured and Indicated ('M&I') mineral resource increased by 4% to 1.9Moz of
gold (6,96Mt at 8,48g/t in situ)
- Significant increase in total resource grade by 33% to 8,35g/t in situ (2010:
6,29g/t in situ)
- Mineral reserve increased by 51% to 1Moz (3,83Mt at 8,12g/t in situ)
Jan Nelson, Chief Executive Officer of Pan African, commented: "These results
confirm that the Barberton ore-body is able to sustain current production rates
well into the future. The increase in the resource grade clearly demonstrates
that there are still significant high grade zones of mineralisation within the
mine boundary. In addition, the Company's ability to drive costs down has
allowed us to convert a significant portion of the resource to reserve. Our
attention is now focused on our prospecting permit where we have identified a
geophysical anomaly close to surface that has a geographic footprint equal in
size to the mining footprint at our Fairview Mine that has produced 4Moz."
Barberton Mines - Mineral Resource upgrade
Over the past three years an integrated Mineral Resource Management ('MRM')
programme has been implemented at Barberton Mines. The objectives of this
programme are to:
(a) increase the total resource;
(b) increase the reserve base to improve Life of Mine and mining flexibility; and
(c) grow the production profile.
This programme represents over 37,915m of drilling, 5494m of development and a
capital investment of approximately GBP6 million over three years.
All three objectives have now been achieved and are supported year-on-year by
the total resource increase by 7% to 2,55Moz (9,47Mt at 8,35g/t in situ), and
the M&I resource increased by 4% to 1,9Moz (6,96Mt at 8,47g/t in situ). The
reserve has been increased by 51% to 1Moz (3,83Mt @ 8,10g/t in situ).
Significant geophysical anomalies have been identified on the prospecting area
and southern extent of the Fairview Mining Authorization boundary. The combined
geographical extent of some of these anomalies are larger than the mining
footprint at the Fairview Mine where over 4Moz of gold has been mined to date.
The focus will now shift to drilling these targets and bringing them to
account.
Barberton Mines Mineral Inventory - 30 March 2011
Barbeton
Mines
Mineral RESOURCE RESERVE
Inventory CATEGORY MASS GRADE CONTAINED GOLD CATEGORY MASS GRADE CONTAINED GOLD
- 30
March
2011 (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
Indicated 4 210 8,49 35 700 1 150 Probable 2 610 8,48 22 200 710
Inferred 2 510 8,01 20 100 650
Total 9 470 8,35 79 100 2 550
Total Measured and
Indicated (Proved
and Probable) 6 960 8,48 59 000 1 900 Total 3 830 8,12 31 100 1 000
- Please note differences may occur due to rounding.
- The table above is only with respect to Barberton Mines.
The Company is currently updating the Groups resource and this will be
announced in due course.
- 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.
- The above resource is 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
MacquarieFirst South Advisers (Pty) Ltd Gable Communications
Natalie Di-Sante/Melanie de Nysschen Justine James
+27 (0) 11 583 2000 +44 (0)20 7193 7463
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