Pan African Resources plc (LON:PAF) said it will complete construction of the Barberton Mines Tailings Retreatment Plant (BTRP) in the current week as it continued construction of its Elikhulu project.
In an operations update, the AIM-listed precious metals miner said the construction of the regrind mill at the BTRP was complete and the commissioning process had commenced and would be completed in the next week.
READ: Pan African Resources to cease underground operations at the Evander gold mine in South Africa
The group added that the mill had been completed on budget and would enable the BTRP to sustain annual production of around 21,000 ounces of gold per annum.
Meanwhile, the company said the construction of its Elikhulu project was proceeding ahead of schedule, with first gold production expected in August 2018, and full commissioning at the end of September 2018.
The firm added that Elikhulu’s capacity would be increased by 200,000 tonnes to 1.2mln tonnes per month from December 2018 by incorporating the existing Evander Tailing Retreatment Plant (ETRP) throughput with the associated economies of scale and enhanced recovery benefits.
Elsewhere, Pan African said it had signed a retrenchment agreement with the recognised unions of Evander Mines at a cost of R160mln South African rand which would be funded through existing debt facilities and internal resources.
The firm added that it was also at an advanced stage of reviewing the technical and commercial merits of mining the remainder of Evander’s 8 shaft pillar, and that this may extend the final closure date of the shaft. However, the process would also generate positive cash flows and assist with further employment opportunities for those affected by dismissal for operational requirements.
In early-morning trading Thursday, Pan African shares were up 0.5% at 7.4p.