Proactive Investors - Run By Investors For Investors

Pan African Resources into high grades again at Barberton

Head grades rose to 11.5g/t in February from 8.7g/t between July and December
Barberton's complex comprises three mines

Pan African Resources plc (LON:PAF) has started to increase production again at its Barberton mine complex in South Africa after reaching a new high-grade gold zone.

Barberton, which comprises the Fairview, Sheba and Consort mines, has seen a rise in average grades to 11.5g/t in February from 8.7g/t during July - December.

READ: Pan African Resources confirms considering cutting jobs at Evander Gold Mine in South Africa

The 32% increase is predominantly as a result of mining high-grade ore from the 272 platform at Fairview's Block 11 since January.

On-reef development samples recently taken from 272 recorded an average grade of 99.2g/t over a mineralised width of 3.36m along a strike length of 24m.

Production from the 11-block MRC orebody will be further enhanced with the completion of the sub-vertical shaft in two years time, Pan African added.

Tailings uplift

Elsewhere, the deep miner is also expecting a major uplift in production from its tailings operations.

A new regrind mill at Barberton (BTRP) will boost its tailings production there to 21,000oz, while the new Elikhulu plant at Evander is progressing faster than expected and will hit full production of 55,000oz in less than two months.

All-in-costs at Elikhulu will be less than US$650 per oz. Added to Evander’s tailings existing operation, production there will reach 70,000 oz per year.

WATCH: Pan African increasing production after reaching new high-grade gold zone

Cobus Loots, chief executive, said: “After a challenging period at Barberton Mines we have successfully dealt with the key underground challenges at Fairview’s 11-block and we are on track to re-establish BTRP’s production profile at approximately 21,000 ounces per annum.”

“These developments, along with progress at the BTRP and Elikhulu, provide Pan African with far greater certainty of high-quality gold ounce production.”

Shares rose 7% to 7.65p.

View full PAF profile View Profile

Pan African Resources plc Timeline

Related Articles

Gold bars
November 27 2018
Panmure Gordon’s analysts noted that Ariana’s third-quarter update continued the trend of above plan production with its full-year 2018 guidance of 20,00 ounces almost reached in nine months
June 21 2018
The company's key operations are located in South Africa, Ghana and Kenya.
November 22 2018
The expansion plans will boost margins as well as output

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use