Altus Strategies gold Cote d'ivoire
Image: 123rf.com

“We are pleased with the robust operational performance for the year to date, and that we again expect to exceed our original full year production guidance,” states Pan African CEO Cobus Loots.

We are encouraged by the outcome of the recently completed concept study for the Mintails Transaction, which confirms our initial assessment of the asset’s potential.

RELATED:
The next frontier at Pan African Resources’ historic Evander gold mine

“Our team is now focussed on completing the pre-feasibility study early in our next financial year.

“The Evander 8 Shaft pillar project is now performing in line with our expectations, and generating the anticipated returns on this capital investment.

READ MORE ARTICLES ABOUT INVESTMENT

“We have re-evaluated our capital expenditure priorities following the receipt of the positive Mintails concept study and the 24 Level project study, resulting in a more phased approach for the development of the Egoli project.

“This approach will extend the life of Evander 8 shaft and reduce our reliance on debt funding for Egoli’s development, enabling the Group to maximise the value of our assets and also returns to our shareholder.

READ MORE ARTICLES ABOUT GOLD

“The successful completion of the Evander Solar Plant in the next months will pave the way for further renewable energy initiatives, so as to further reduce our carbon footprint and further increase operating margins”

Highlights

  • FY 2021 production guidance increased to ca. 195,000 oz of gold for the financial year ending 30 June 2021, exceeding the previous production guidance of ca. 190,000 oz.
  • The Group continues to maintain stringent policies and protocols to mitigate the effects of the ongoing COVID-19 pandemic on employees and operation
  • Production from Evander’s 8 Shaft pillar has significantly improved in the 2nd half of the 2021 financial year, with average production of ca. 3,400 oz per month, for the last three months. The 8 Shaft pillar has a remaining life in excess of 2 years, and is expected to produce ca. 80,000 oz of gold during its remaining LoM
  • As part of its continuous evaluation of the respective merits of its growth opportunities and capital expenditure priorities, the Group has completed an internal study into the extensive gold resources at the 24 level at Evander’s Underground operations, with ca. 100,000 oz recoverable, and accessible through the 8 Shaft number 2 decline. The 24 Level project will extend the LoM of Evander with a minimum of two and a half years
  • The independent fatal flaw analysis and subsequent concept study completed on the Mintails SA’s tailings resources has yielded positive results. The initial phase of this project has the potential to produce some 533,000 oz of gold over an estimated 12-year LoM at an AISC of ca. $800/oz, according to the initial studies

In light of the positive concept study on the merits of the Mintails Transaction and the reassessment of the mining opportunity at the 24 Level project, the Group has reprioritised its capital expenditure programmes as follows:

  • It will now implement a phased approach for the development of the Group’s Egoli project, with significantly reduced upfront capital requirements, materially reducing the requirement to raise debt to fund this project in the ensuing years
  • It will complete a pre-feasibility study (PFS) during the third quarter of the 2021 calendar year and a definitive feasibility study during the first quarter of the 2022 calendar year on the Mintails Transaction
  • It has commenced preparatory work for the mining of the 24 Level project
  • Site clearance and procurement of major components for the Evander Mines’ solar photovoltaic plant has commenced and the project is on track for commissioning during the third calendar quarter of 2021.
  • The Group expects to maintain a similar production level for the 2022 financial year.