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Pan African Resources to start work on new Egoli deep mine later this year

First gold is expected to be produced approximately 20 months after construction commences

Pan African Resources plc -

Pan African Resources plc (LON:PAF) the South Africa-based gold miner, has published details of the feasibility study for its Egoli underground mine on the site of its existing Evander operation.

Based on a gold price of US$1,650 per oz, the project can generate US$131mln from a nine-year life, the independent study has concluded.

Using Evander’s existing infrastructure will bring the cost of the project down to US$66mln, said Pan African.

In a statement, it confirmed the project has an initial life of mine of 9 years, with annual gold production of approximately 72,000 at an average head grade of 6.61grams per ton (g/t). 

First gold is expected to be produced approximately 20 months after construction commences, with a ramp-up to steady-state production over the following 16 months.

Detailed project scheduling and planning is expected to be completed in the first quarter of the 2021 financial year (September 2020) with non-dilutive funding to be finalised in the second quarter of the 2021 financial year when development work will start.

Egoli is expected to directly employ approximately 1,200 people, mainly from the local communities surrounding

The Evander solar plant, which will be completed in the next year, is expected to also contribute to cost savings and reduced emissions at Evander’s operations.

The Egoli orebody is around 2 kilometres below the surface compared to 3km for the Evander 8 shaft currently being worked. 

Quick facts: Pan African Resources plc

Price: 26.6 GBX

AIM:PAF
Market: AIM
Market Cap: £512.94 m
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