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.