Johannesburg, South Africa — MININGREVIEW.COM — 25 February 2011 – Pan African Resources is looking to grow both organically and through merger and acquisition activity, using its strategic partnership with empowerment partner Shanduka Resources to achieve its objectives.
That’s according to CEO Jan Nelson, who said Pan African was in a position to pursue new growth opportunities, now that its Phoenix Platinum tailings recovery plant was under construction, and the flagship Barberton Gold Mines was operating smoothly.
Pan African reported a 58% rise in attributable profits to â‚¤7.6 million for the second half of 2010, compared to â‚¤4.8 million for the six months to 31 December 2009, on the back of a 32% rise in gold revenues to â‚¤38.3 million (â‚¤29 million), because of higher gold recovery grade and increased gold revenues, combined with lower operating costs at Barberton.
Nelson highlighted the increase in Barberton’s recovered grade to above 10g/t, which he believed was sustainable, as well as a string of high-grade intersections from exploration drilling at each of Barberton’s three separate mines “’ Fairview, Sheba and New Consort.
“These are excellent results,” he said. “Many people reckon that the Barberton gold field is old and finished, but I don’t think so. I believe there’s another 100 years of life in this deposit and I base my confidence on the fact that we have such a great ore body.”
Pan African is also assessing a project to recover gold from the tailings dam at the Fairview mine, where drilling is under way. It has revealed gold grades of between 0.6g/t and 2.5g/t.
Nelson said if a feasibility study showed the project was viable, it could produce about 25 000 ounces of gold annually over a six-year life at an operating cost of under US$300/oz.
“With Barberton sorted out, we can now look at more projects which will provide further growth for Pan African, and our relationship with Shanduka is integral to this strategy.”
Nelson said Pan African intended maintaining its focus as a precious metal miner, and that the projects to be looked at would involve both organic growth and acquisitions. He declined to provide any specifics at this stage, but said there might be further developments during the current calendar year.