Golden Rim Resources

The group has continued the Royal Sheba exploration drilling programme and is now able to provide feedback on the updated Mineral Resource Estimate and the surface exploration drilling results.

South Africa The results, thus far, have exceeded expectations. Pan African has also embarked on an extended exploration programme within Barberton Mines’ mining right at both Sheba and New Consort Mines around historic workings and for potential new satellite deposits.

“The exploration results from the drilling on Royal Sheba have exceeded our expectations,
reaffirming the grades historically mined at depth,” comments Pan African CEO, Cobus Loots.

“Significantly, the drilling programme has indicated the orebody extends to surface, with the potential to establish a new open pit mining operation in the short term, transitioning to an underground mining operation only after a number of years.

“In conjunction with the ongoing exploration programme, we will finalise a definitive feasibility study, with the view of commencing project development in the near term.

“I am also excited at the prospectivity of our mining lease namely; New Consort and Sheba Hills and proving similar near-surface resources from this extended exploration programme.

“Royal Sheba’s opencast orebody has the potential to increase production from our flagship Barberton operations at a very competitive cost, aligned with our strategic positioning as a low cost gold producer.

“We look forward to working with all stakeholders in advancing this project, to the benefit of not only shareholders, but also the Mpumalanga province and the Barberton area.

“We anticipate updating the market with a further MRE in November 2018 and a definitive
feasibility study in February 2019,” he continues.

MRE results

According to Pan African the Royal Sheba orebody is associated and aligned along the prominent regional shear zone of the Sheba Fault, within the north-western quadrant of the Archaean aged Barberton Greenstone Belt.

The Sheba Fault juxtaposes the Fig Tree Group’s deep marine sediments, namely the greywacke and banded chert and carbonatised shale in the Ulundi Syncline, adjacent to the shallow marine sediments of the Moodies Group in the Eureka Syncline.

The mineralisation of the Royal Sheba orebody is encapsulated in a shear envelope of the Sheba Fault, ranging in width from 5 m to 25 m.

The gold mineralisation occurs predominantly in sulphide minerals and as native gold. In-situ gold grades range between 0.5 g/t to 174 g/t averaging 3.27 g/t.

The Royal Sheba orebody has a potential strike length of 1,450 m and extends down dip to a depth of 600 m. The Royal Sheba orebody is open ended along strike and dip.

Pan African has reviewed the Mineral Resource of the Royal Sheba orebody, focussing on the geology and mineralisation of the deposit, incorporating a full 3D geological modelling exercise on the structural, lithological and mineralisation components of the deposit.

The combination of the three components resulted in a robust and fit-for-purpose 3D geological model.

The following new Mineral Resource tabulation has been reported from the 3D geological model and resource block model, using a 0.5g/t cut-off grade for near surface ore and 1.87g/t for down-dip extensions.

Mineral Resources are reported in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016.

Mineral Resources would be the same if reported according to the guidelines of the Canadian Institute of Mining’s National Instrument 43-101.

Cut-off values are calculated at 0.5 g/t for open pit and 1.87 g/t for underground, applying a gold price of ZAR 600 000/kg (USD 1 435/oz and ZAR 13.00/1 USD). Mineral Resources are reported inclusive of Mineral Reserves.

All Mineral Resources reported exclude geological structures. Mineral Resources are reported as in-situ tonnes. Any discrepancies in totals are due to rounding.

In addition Pan African has embarked on a three-phase exploration programme.

Phases one and two comprise 20 drill holes, totalling 1,645m, and is 95% complete. This announcement contains the results of 80% of the completed drill holes.

A further 15 drill holes, totalling 2,280m, is planned for phase three, which will test the easterly strike and dip extension of the Royal Sheba deposit.

An exploration team headed by Mr Walter Seymore (Exploration Manager), has been based in Barberton since May 2018, managing the Royal Sheba surface drilling.

A regional exploration strategy over Pan African’s mining right lease areas is in place to define new and historic satellite deposits around the Royal Sheba project.

Several historic satellite deposits have been targeted in the Sheba Hills namely Golden Quarry, Oriental Quarry, Eureka, Margaret and Sheba West for resource definition drilling.

In addition to the exploration in the Sheba Hills, the Company is exploring the Jamestown Shear Zone, within the New Consort mining right for near-surface Mineral Resources.

Initial desktop studies indicate high prospectivity in the Consort Bar and an exploration drilling programme will commence in November 2018.

Next steps

An update to the MRE is expected to be completed by November 2018. This will include all of the results from the in-fill drilling programme.

SRK Consulting Proprietary has been appointed as the independent third party consultant to review and sign-off on the updated MRE and tabulation.

Following the update to the MRE, a definitive feasibility study will be undertaken by DRA Global and is expected to be completed in February 2019.

The company has proceeded with metallurgical test-work and geotechnical studies for the Royal Sheba open pit operation in support of a definitive feasibility study.

All regulatory permitting will be pursued during the feasibility study.

The information contained in this announcement has not been reviewed or reported on by Pan African’s auditors and is the responsibility of the directors of Pan African.