Last checked at 22 Jun 2011 07:00
22 June 2011 Pan African Resources PLC ('Pan African' or the 'Company' or the 'Group') Incorporated and registered in England and Wales under Companies Act 1985 with the registered number: 3937466 on 25 February 2000 Share Code on AIM: PAF Share code on JSE: PAN ISIN: GB0004300496 Significant Resource upgrade at Manica Gold Project and Group Mineral Resource upgrade Pan African Resources, the African focused precious metals producer, announcesa significant increase in the mineral resource for its Manica gold project inMozambique, an updated Group Mineral Resource statement as well as a declaredreserve statement for the Phoenix Platinum Mining (Pty) Ltd ('PhoenixPlatinum') project. This follows the significant increase in the mineralresource and reserve at Barberton Mines (Pty) Ltd ('Barberton') as announced on31 May 2011. Highlights:
Manica Gold Project - Mineral Resource upgrade:
Increased Increased Percentage from: to: Increase:
Total mineral resource based on gold content 2.56Moz 2.99Moz 16%
(50.554Mt at 1.82g/t in situ)
Total Measured & Indicated mineral resource 1.31Moz 1.38Moz 5% based on gold content (24.556Mt at 1.75g/t in
situ)
Inferred mineral resource based on gold content 1.25Moz 1.58Moz 26%
(25.998Mt at 1.90g/t in situ)
Group Mineral Resource statement:
Increased Increased Percentage from: to: Increase:
Total mineral resource based on gold content 4.63Moz 5.67Moz 22%
(63.150Mt at 2.79g/t in situ)
Total Measured & Indicated mineral resource 2.96Moz 3.43Moz 16% based on gold content (34.640Mt at 3.07g/t in
situ)
Inferred mineral resource based on gold content 1.67Moz 2.24Moz 33%
(28.510Mt at 2.43g/t in situ)
Proved & Probable reserve based on gold content 661,000 1.00Moz 51%
(3.830Mt @ 8,12g/t)
Phoenix Platinum - Proved and Probable Reserve
Increased Increased Percentage from: to: Increase:
A Proved and Probable 4E* metal mineral - 174,000oz 100%
reserve is declared
* Platinum (56,6%), Palladium (27%), Rhodium (16%) and Gold (0,5%)
Jan Nelson, Chief Executive Officer of Pan African, commented: "The Manica project now represents a 3Moz deposit, which is significant as there are not many gold deposits in Africa in excess of 3Moz, which outcrop on surface. Significant strike-length remains to be tested.
The Company continues to focus on the development of its organic pipeline ofprojects to increase the profit margin that will, not only continue to grow thevalue of the company, but also place the Company in a position to continuepaying a dividend. We see this as a sound strategy, especially in a marketwhere companies are overpaying on new acquisitions at inflated metal prices togrow metal resources in the ground that potentially might never be brought
toaccount."
Manica Gold project - Mineral Resource upgrade
Over the past two years, a significant amount of work has been completed totest the economic viability of the Manica project. A total geologicalre-assessment of the mineralised envelopes has been undertaken, which hasresulted in the development of a new geological model. The result is that themineralised envelopes are being projected with greater geostatisticalconfidence than before. The Company continues exploring optimum ways to bringthis project to account.
Group Mineral Resource upgrade
Of the total gold mineral inventory, Barberton Mines represents 48% or 2.70Moz(12.600Mt @ 6.64g/t) and Manica 52% or 2.966Moz (50.554mt @ 1.82g/t). In termsof volume, Barberton accounts for 16% (12.6Mt) and Manica for 84% (50.554Mt).In terms of Measured & Indicated gold resource, Barberton accounts for 60% or2.050Moz (10.090Mt @ 6.30g/t in situ) and Manica for 40% or 1,38Moz (24.556Mt @1.75g/t in situ). In terms of Measured and Indicated volume, Barberton accountsfor 29% (10.090Mt) and Manica for 69% (24.556Mt). Barberton accounts for the total gold reserve stated. No reserve is declaredfor the Manica project. A Proved and Probable 4E* metal mineral reserve of174Koz for the Phoenix platinum project is declared. Construction on thePhoenix platinum project is underway and ahead of schedule and first productionof 4E metal is expected in Q2 of the 2011/12 financial year. Pan African consolidated Mineral Resource Inventory as at 1 June 2011 - 100% Attributable to Pan African
(Gold operations and Manica projects)
RESOURCE RESERVE CATEGORY MASS GRADE CONTAINED GOLD CATEGORY MASS GRADE CONTAINED GOLD (kt) (g/t) (kg) (koz) (kt) (g/t) (kg) (koz) Measured 14,310 3.03 43,300 1,390 Proved 1,220 7.30 8,900 290
Barberton Indicated 20,330 3.11 63,200 2,040 Probable 2,610 8.51 22,200 710 Mines and
Manica Inferred 28,510 2.43 69,400 2,240 Total 63,150 2.79 175,900 5,670 Total Proved Total Measured and and Indicated 34,640 3.07 106,500 3,430 Probable 3,830 8.12 31,100 1,000
Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding.
* Pan African combined table compiled from signed off resource estimates for all gold projects
Barberton Mines Resource and Reserve Estimate as at 1 June 2011
RESOURCE RESERVE CATEGORY MASS GRADE CONTAINED GOLD CATEGORY MASS GRADE CONTAINED GOLD (kt) (g/t) (kg) (koz) (kt) (g/t) (kg) (koz) Measured 2,750 8.45 23,300 750 Proved 1,220 7.27 8,900 290Barberton Mines Indicated 7,340 5.50 40,300 1,300 Probable 2,610 8.48 22,200 710 Mineral Inventory Inferred 2,510 8.01 20,100 650 Total 12,600 6.64 83,700 2,700 Total Proved Total Measured and and Indicated 10,090 6.30 63,600 2,050 Probable 3,830 8.12 31,100 1,000
Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding.
Frans Chadwick, a member of the South African Council for Professional and Technical Surveyors (PLATO) and an employee of Barberton Mines, has signed off on the above Mineral Inventory for Barberton Mines.
MANICA MINERAL RESOURCE as at 1 June 2011
RESOURCE CATEGORY PROJECT MASS GRADE CONTAINED GOLD (kt) (g/t) (kg) (koz) Per Category Fairbride 11,561 1.73 19,978 642 Dots Luck - - - - Measured Guy Fawkes - - - - Boa Esperanza - - - - Total 11,561 1.73 19,978 642 Fairbride 10,795 1.64 17,720 570 Dots Luck - - - - Indicated Guy Fawkes 2,200 2.44 5,200 168 Boa Esperanza - - - - Total 12,995 1.76 22,920 738 Fairbride 24,598 1.83 45,075 1,449 Dots Luck 500 3.35 1,500 50 Inferred Guy Fawkes 600 2.80 1,700 56 Boa Esperanza 300 2.96 1,000 31 Total 25,998 1.90 49,275 1,586 Total Mineral Resource 50,554 1.82 92,173 2,966 Total Measured, Indicated, Inferred Measured 11,561 1.73 19,978 642 Indicated 12,995 1.76 22,920 738 Inferred 25,998 1.90 49,275 1,586 Total Mineral Resource 50,554 1.82 92,173 2,966 Total Measured and Indicated Measured 11,561 1.73 19,978 642 Indicated 12,995 1.76 22,920 738 Total M&I 24,556 1.75 42,898 1,380
Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding.
Mineral Inventory signed off by B Northrop (Phd, Sci Nat, FSAIMM, FGSSA, MGASA), ExplorMine
Total Phoenix Resource and Reserve Estimate as at 1 June 2011
MINERAL MINERAL 4E METAL RESOURCE 4E METAL RESERVES MASS GRADE 4E METAL RECOVERY MASS GRADE 4E METAL RESOURCE RESERVE PROJECT CATEGORY (kt) (g/t) (kg) (oz) (%) CATEGORY (kt) (g/t) (kg) (oz) Surface Tailings Measured 218 3,66 797 26,000 45% Proved 218 1,65 359 12,000 Buffelsfontein Indicated 45% Probable Tainlings Dams Inferred Total 218 3.66 797 26,000 45% Total 218 1.65 359 12,000 Measured 1,149 2.45 2,813 90,000 45% Proved 1,149 1.10 1,266 41,000 Elandskraal Indicated 145 2.03 295 9,000 45% Probable 145 0.92 133 4,000 Dumps and Pits Inferred 42 2.00 84 3,000 Total 1,336 2.39 3,192 102,000 45% Total 1,294 1.08 1,399 45,000 Measured 260 2.00 520 17,000 45% Proved 260 0.90 234 8,000 Kroondal Indicated 30 2.00 60 2,000 45% Probable 30 0.90 27 1,000 Dumps Inferred 120 2.00 240 8,000 Total 410 2.00 820 27,000 45% Total 290 0.90 261 9,000 Total Surface Tailings 1,964 2.45 4,809 155,000 45% Total 1,802 1.12 2,018 66,000 Current Arisings Measured 1,597 3.66 5,845 188,000 45% Proved 1,597 1.65 2,630 85,000 Buffelsfontein Tainlings Dams Indicated 443 3.66 1,622 52,000 45% Probable 443 1.65 730 23,000 Inferred 642 3.66 2,348 75,000
Total Current Arisings 2,682 3,66 9,815 316,000 45% Total 2,040 1.65 3,360 108,000 Total Measured and Indicated (Proved and Probable)
Surface Tailings & Measured 3,224 3.09 9,975 321,000 45% Proved 3,224 1.39 4,489 146,000
Current Arisings Indicated 618 3.20 1,977 64,000 45% Probable 618 1.44 890 28,000 Total 3,842 3.11 11,952 384,000 45% Total 3,842 1.40 5,378 174,000 Grand Total (Surface Tailings + Current Arisings) Total Surface and Current Arisings 4,646 3.15 14,624 470,000 45% Total 3,842 1.40 5,378 174,000
Note: Estimates of Mineral Resource and Mineral Reserve are not precise calculations and errors may occur due to rounding.
Geologix MRC (Pty) Ltd is a South African Resources and Geological Consultancy - Deon van den Heever is SACNASP accredited and was responsible for the resource estimate.
Reserve conversion done by E Nel (Pr. Tech.Eng)(MBA), ENC Minerals
Overall mineral inventory checked and signed off by Venmyn Rand
The above resources are compliant with the South African Mineral Resources Code('SAMREC'). Enquiries: South Africa UK Pan African RBC Capital Markets
Jan Nelson, Chief Executive Officer Martin Eales
+27 (0) 11 243 2900 +44 (0) 20 7029 7881 Pan African St James's Corporate Services Limited
Nicole Spruijt, Public Relations Phil Dexter
+27 (0) 11 243 2900 +44 (0) 20 7499 3916
Macquarie First South Advisers (Pty) Ltd Gable Communications Natalie Di-Sante/Melanie de Nysschen Justine James
+27 (0) 11583 2000 +44 (0)20 7193 7463 ENDS
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