Name of the Project
Egoli project.

Location
Mpumalanga, South Africa.
Project Owner/s
Pan African Resources.

Project Description
The Egoli project will be South Africa’s newest underground gold mine. The mine will capitalise on Evander Mines’ existing infrastructure, reducing the upfront capital investment.

The project is expected to contribute incremental production of about 72 000 oz/y over its minimum nine-year mine life at a head grade of 6.61 g/t of gold, based on the measured and indicated mineral resources.

Life-of-mine (LoM) gold production is estimated at 570 000 oz.

The LoM excludes the inferred mineral resources of 6.26-million tonnes at 9.68 g/t of gold, which will be accessed once underground development is in place, and can potentially increase the LoM to 14 years.

The project initially requires about 560 m of underground development from the existing No 3 decline, and will benefit from existing infrastructure such as vertical shafts, hoisting capacity and an operating metallurgical processing plant.

The existing Kinross metallurgical plant will be refurbished to process the ore.

Potential Job Creation
The project is expected to provide employment for about 1 200 people.

Net Present Value/Internal Rate of Return
The project has a net present value of R2.01-billion and an internal rate of return of 50.1% at a gold price of $1 650/oz. Project payback is estimated at 3.8 years.

Capital Expenditure
Peak funding is estimated at R1.05-billion. Finalisation of the legal agreements for the implementation of the project’s debt funding package is under way.

Planned Start/End Date
The project is expected to take 20 months to complete. Ramp-up to steady-state production is expected to take 16 months thereafter.

Latest Developments
Pan African is implementing a phased development approach for the project.

Preliminary work has started and dewatering of the 3 Decline started in June 2022.

Continuous pumping of an estimated 5 Mℓ/d is under way. The water level in the decline decreased by 80 m (progressive) by the end of the six months ended December 31, 2022.

The planned completion date for the dewatering is May 2023. Once dewatering is completed, an assessment of the installed infrastructure and the development end will be possible.

Access to additional mining areas may also be possible following this assessment. Reserve delineation drilling will then be undertaken to more accurately define the Egoli payshoot’s grade variability for early mining.

Key Contracts, Suppliers and Consultants
DRA Global (feasibility study and engineering, procurement and construction management).

Contact Details for Project Information
Pan African Resources, Juanita Maijsen, tel + 27 11 243 2900 or email ExecPA@paf.co.za.