Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN) has completed a feasibility study on the Soweto Cluster tailings storage facilities, confirming a preferred expansion option for the Mogale Tailings Retreatment (MTR) complex.
The study reviewed two development routes and identified a 600,000-tonne-per-month integrated circuit, referred to as the Soweto Tailings Retreatment (STR), as the most viable based on cost, permitting and construction timelines.
The preferred option carries an estimated capital cost of about US$160 million and is expected to produce 30,000 to 35,000 ounces of gold annually over a fifteen-year period.
A definitive feasibility study for this route is scheduled for completion by June 2026, after which a final board decision is expected.
"The successful commissioning of the MTR operation in October 2024, completed ahead of schedule and under budget, again demonstrated Pan African’s ability with regards to successfully commissioning tailings retreatment operations," chief executive Cobus Loots said in a statement.
"We continue to optimise operations at MTR, with the expansion of its production capacity from ~50koz/yr to ~60koz/yr to be completed in the next month."
He added that the planned STR circuit would lift total output from the complex to nearly 100,000 ounces per year.