Pan African Resources Regulatory News (PAF)

2 Oct 2006 08:36

Pan African Resources PLC02 October 2006 Pan African Resources PLC ("Pan African" or "the Company") Manica Project, Mozambique Update on metallurgical test results forming part of pre-feasibility study Pan African Resources PLC (AIM: PAF), the African based gold explorationcompany, announces the results of the metallurgical work completed on the FairBride prospect within the Manica Project, where the company is completing apre-feasibility study on an opencast mine. Highlights • Overall gold recoveries from the upper oxide zone is 90% through normal cyanidation • Overall gold recovery from the lower sulphide zone is 86% through a combination of flotation, BIOX(R) and normal cyanidation • Further optimisation test work is currently underway Scope of work The mineralised envelope at Fair Bride can be divided into an upper oxide zone(weathered) and a lower sulphide zone (unweathered), both of which are beinginvestigated to be mined from surface. Traditionally gold recovery in oxidezones is more easily achievable than in sulphide zones where the gold is oftenlocked up within sulphide minerals. However, in recent years, efficient andeffective gold extraction has been achieved from sulphide zones throughadditional extraction processes. With this in mind the company engaged the BIOX(R) division of Gold Fields Limited ("Gold Fields") to carry out metallurgicaltest work as part of the pre-feasibility study. Work completed Oxide zone - A 10kg representative oxide sample was submitted to SGS Lakefieldin South Africa. The sample reported a recovery of 90.12% as a result of normalcyanidation. Sulphide zone - A 500kg composite sulphide core sample was submitted to SGSLakefield in South Africa for laboratory flotation test work and a 10.17kgconcentrate was produced therefrom for BIOX(R) test work. These tests resultedin gold dissolution recoveries with some tests as high as 93% and an overallrecovery of 86% through a combination of flotation, BIOX(R) and normalcyanidation. Work currently underway Pan African together with the BIOX(R) division of Gold Fields are currentlyfinalising a conceptual metallurgical flow diagram, preliminary equipment listsand order-of-magnitude cost estimates for the treatment of the mineralisedenvelope as part of the pre-feasibility study. These cost estimates will also beused in the engineering assessment of an opencast mine which is ongoing. Jan Nelson, CEO, Pan African, commented: "The Company is very pleased that thework completed indicates that the metallurgical results at a basic stage withoutoptimisation are excellent. High recoveries such as these are paramount to thesuccess of any mining project. The Company expects to report on the initialresults of the mine engineering study on the viability of an opencast mine inthe near future and expects to complete, on time, the pre-feasibility studybefore the end of 2006. The exploration programme at Manica to locate furthermineralised zones along strike from Fair Bride is well underway and severaldrill targets have already been identified." For further information on Pan African Resources please visit the website atwww.panafricanresources.com Enquiries: Pan African Resources Ambrian Partners Limited Parkgreen CommunicationsJan Nelson, CEO Richard Chase Justine Howarth / Victoria Thomas+27 11 886 1211 +44 (0)20 7776 6461 +44 (0) 20 7493 3713Colin Bird, Chairman+44 (0) 20 7584 2155 NOTES TO THE EDITOR • SGS Lakefield is a SANAS accredited laboratory in South Africa.Flotation test work was overseen by Mr. H Stallknecht, Manager FlotationTechnologies for SGS Lakefield Research Africa and carried out by Mrs. JRupnarain, Head Flotation Technologies SGS Lakefield Research Africa. • The BIOX(R) process is a registered trademark of Gold Fields and alltest work was overseen by Mr. Jan van Niekerk, Senior Metallurgical Consultant(Refractory Ores) for Gold Fields BIOX(R). • BIOX(R) - is a process whereby bacteria is used to pre-treatrefractory sulphide gold ores such as pyrite, arsenopyrite and pyrrhotite. Thegold in these sulphide ores is often encapsulated in sulphide minerals whichprevent gold from being leached by cyanide. The BIOX(R) process destroys thesulphide minerals and exposes the gold for subsequent cyanidation, increasingrecovery rates. • SANAS - South African National Accreditation System. • Detailed copies of the individual metallurgical reports will be posted on the company website under: Manica - pre-feasibility study. This information is provided by RNS The company news service from the London Stock Exchange