Pan African Resources in its update on the Company’s operations and growth projects says FY 2021 production guidance has increased to ca. 195,000oz of gold for the financial year ending 30 June 2021, exceeding the previous production guidance of ca. 190,000oz.
The Group continues to maintain stringent policies and protocols to mitigate the effects of the ongoing COVID-19 pandemic on employees and operations.
Production from Evander’s 8 Shaft pillar has significantly improved in the 2nd half of the 2021 financial year, with average production of ca. 3,400oz 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. 80,000oz of gold during its remaining life of mine (LoM) (ca. 34,000oz per annum).
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 (24 Level project), with ca. 100,000oz 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 (Mintails Transaction) has yielded positive results. The initial phase of this project has the potential to produce some 533,000oz 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 (Evander Solar Plant) has commenced and the project is on track for commissioning during the third calendar quarter of 2021.
The Group now expects to produce ca. 195,000oz for the 2021 financial year, representing an increase of 5,000oz relative to the previous production guidance of 190,000oz. Based on current planning, the Group expects to maintain similar production levels for the 2022 financial year.