Statement re Results of Manica Pre-Feasibility ...
4 June 2009
Pan African Resources PLC
(`Pan African' or the `Company')
(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
Results of Manica pre-feasibility study
Pan African announces the results of the preliminary in-house pre-feasibility
study conducted on the Manica (Fairbride) project. Several components of the
study have been signed off by independent consultants, including the mine
design, resource estimate and the environmental impact assessment. Capital
expenditure estimates and plant design have been reviewed internally.
The pre-feasibility study was based on the Manica resource of 2.571Moz (33.8Mt
@ 2.36g/t) as announced on 26 February 2009.
After completing a modelling exercise using the internationally-recognised
Surpac 3D mine design modelling system, the Company plans to apply a two-phased
approach to the mine design. Phase one of the design will incorporate an
open-pit design, mining to a vertical depth of 30m. Phase two will see the
Company move production underground where various mining methods will be
applied depending on geological conditions.
The refractory part of the mineralized zone representing 93% of estimated
resources will require the construction of both a BIOX® plant - using the
technology in place at Barberton Mines, Pan African's South African gold mining
operation as well as a Carbon-in-Leach (`CIL') plant. The CIL is the less
costly of the two, encouraging the Company to seek to consolidate further
assets in the area with oxide material which can be mined delaying the
investment in the BIOX® processing plant.
The Company has been engaging with other exploration parties operating in the
Manica district with the full support and encouragement of the Mozambique
Ministry of Mineral Resources, in an effort to consolidate additional resources
in the area. If successful, this could further improve the financial parameters
of the project.
Preliminary Financial modelling and results
Plant capacity 80 000 tonnes per month
Plant Recovery factor 86.5%
Production rate 80 000 tonnes per month
Total tonnage to be produced during LOM 9.26Mt
LOM in years 11 years
Total content delivered to mill 917 000 oz
Capital cost estimate US$ 80 million
Total mining cost US$ 375/oz
Discount rate applied 15 %
Gold price US$ 750/oz
NPV US$ 45 million
IRR 32%
An external Mozambique-based consultancy, Geoide Consultoria LDA, identified no
anomalous issues or risks in the Environmental Impact Assessment of the
proposed Fairbride operation.
"We're pleased with our findings and are working towards consolidating other
potential mineralised areas in the district to grow our current resources,
further our optimisation work and receive independent verification. The next
step will be completing a Bankable Feasibility Study." commented Jan Nelson,
CEO of Pan African.
ENDS
Details of independent consultants:
Martin Bevelander, a registered competent person with the South African Council
for Natural Science Professions (`SACNASP'), signed off on the resource
statement for Manica. Mr Bevelander has reviewed this announcement and consents
to the inclusion of the technical information in the form and context in which
it appears.
Deon van der Heever from Geologix, an independent competent person registered
with SACNASP, signed off on the block and geostatistical model for Manica.
Hannes Miller, from RHC Consultants signed off as an independent consultant on
the mine design for Manica
Dinis Napido, from Geoide Consultoria LDA, conducted an independent
Environmental Impact Assessment.
Enquiries:
Pan African Resources
Jan Nelson, CEO
+27 (0) 11 243 2900
Keith Spencer, Chairman
+27 (0) 11 243 2900
Nicole Spruijt, Public Relations
+27 (0) 11 243 2900
RBC Capital Markets
Martin Eales
+44 (0) 20 7029 7881
Macquarie First South Advisers (Pty) Limited
Thato Morojele
+27 (0) 11 583 2379
Annerie Britz
+27 (0) 11 583 2328
Melanie de Nysschen
+27 (0) 11 583 2316
St James's Corporate Services Limited
Phil Dexter
+44 (0) 20 7499 3916
FDBeachhead Media & Investor Relations
Jennifer Cohen
+27 (0) 11 214 2401
Louise Brugman
+27 (0) 11 214 2415
+27 (0) 83 504 1186
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