Pan African’s Mineral Resource Manager, Hendrik Pretorius informs that DRA Global has completed a feasibility study on Evander’s Egoli Project, which was subject to an independent review by The Mineral Corporation.
The study concluded that the project has a life of 9 years with potential upside, through the conversion of inferred mineral resources, as underground development proceeds.
The Egoli Project is expected to contribute average annual gold production of 72,000oz, with 20 months to first gold from commencement of development, at an expected AISC of under USD1,000/oz.
The project initially requires approximately 560 meters of underground development and will benefit from existing infrastructure such as vertical shafts, hoisting capacity and an operating metallurgical processing plant, as well as the existing experienced management team.
The Group has mandated DRA Global as consultants to complete the detailed project scheduling and planning as the next phase in the development of the project. Non-dilutive funding options are currently being explored for the finance of the project. Pan African Resources is in a position to increase its production guidance for the 2021 financial year to approximately 190,000oz. This increase is attributable to the abovementioned operational optimisation initiatives and resumption of full scale mining activities, following the lifting of COVID-19 restrictions, and assumes that the Group will not experience material COVID-19 disruptions in the coming year.