Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN), the London- and Johannesburg-listed gold producer, has completed a definitive feasibility study on its Soweto Tailings Retreatment project in South Africa, setting out a path to nearly double output from its Mogale complex.
The study points to annual production of 35,000 to 40,000 ounces of gold over a roughly 15-year life, lifting peak output from the wider Mogale Tailings Retreatment complex to around 100,000 ounces a year.
Life-of-mine production is estimated at approximately 561,000 ounces. The project, on the West Rand of Gauteng, involves retreating the Soweto Cluster tailings storage facilities acquired through the Mintails transaction, which hold reserves of around 108 million tonnes at 0.28 grams per tonne, containing roughly 0.98 million ounces.
A 600,000 tonnes per month retreatment circuit would be built next to the existing Mogale processing facility, sharing its elution, carbon regeneration, electrowinning and smelting infrastructure to cut capital intensity.
A value engineering review shaved approximately 718 million rand off the price tag, trimming estimated capital from 4.40 billion rand to 3.68 billion rand (US$216 million), including a new tailings storage facility and remining infrastructure.
At a gold price of US$3,550 an ounce, the project delivers a post-tax net present value of about 1.85 billion rand (US$109 million), an internal rate of return of 29.55% and a payback period of roughly three years after commissioning.
All-in sustaining costs are pegged at US$1,750 to US$1,800 an ounce over the life of the mine, before any savings from renewable energy supply.
Construction would take around 28 months from a final investment decision, which is targeted for December 2026, subject to board approval, financing and permits.
Principal environmental authorisations are expected during the 2027 financial year.
Chief executive Cobus Loots said the study defines a project offering "attractive returns, meaningful production growth and accelerated environmental rehabilitation".
He added that the scheme would simultaneously address historical environmental liabilities on the West Rand, with retreatment of the old facilities speeding up the clean-up of the surrounding areas.
