(Alliance News) - Pan African Resources PLC announced on Thursday it had completed a definitive feasibility study on the Mogale Gold Pty Ltd's tailings storage facilities.
Mogale Gold forms part of Mintails Mining SA Pty Ltd, situated near Krugersdorp to the west of Johannesburg, which was placed into provisional liquidation in 2018.
The study showed that the Mogale Gold project had the potential to increase Pan African's gold production, with re-mining of tailings storage facilities expected to add about 50,000 ounces a year over 13 years.
Pan Africa's gold production stood at 201,777 ounces as at June 30, 2021.
The facilities contain contain a probable mineral reserve of 123.6 million ounces of re-mineable material for an estimated content of 1.14 million ounces of gold.
Pan African said a number of funding options for the project are being considered, including offers of debt finance from financial institutions and other third party financiers.
The definitive feasibility study comes after Pan African entered into conditional agreements to acquire Mogale Gold and Mintails' SA Soweto Cluster Pty Ltd. Both Mogale Gold and SA Soweto Cluster are 100% owned by Mintails.
The deadline for fulfilment of the conditions to conclude the Mintails deal was extended to August and included the completion of a fatal flaw analysis, pre-feasibility study and definitive feasibility study.
Shares in Pan African Resources were down 0.2% at 19.08 pence on Thursday in London, while its Johannesburg shares were 0.8% lower at ZAR3.72.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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Pan African (PAF)