South African gold miner Pan African Resources PLC (LON:PAF) is to carry out a feasibility study at Royal Sheba at the Barberton complex to assess its viability.
A new estimate suggests Royal Sheba contains a potential 720,000oz of gold or double the previous resource.
WATCH: Pan African increasing production after reaching new high-grade gold zone
The mine was shut in 1996 after small-scale mining had gone down to a depth of 340m.
A study in 2010 indicated a stand-alone mechanical mine operation was possible but would require substantial capital expenditure.
Pan African now believes synergies with the existing mines at Barberton might reduce the upfront cost significantly.
Elsewhere, Pan African said Barberton production has recovered after it moved into higher grade zones.
The mines complex is on track to produce 50,000 ounces of gold in the second half of this year, a 23% increase over the first six months.
First gold from the Elikhulu tailings project is on track for August. At full production, Elikhulu will produce 55,000oz per year.
At the Evander mine, talks over job cuts are continuing with the unions, said the company, and how these conclude with determining Evander’s production for the year to June.