Name of the Project
Evander Mines’ 7 Shaft – Egoli project.

Location
Mpumalanga, South Africa.

Project Owner/s
Pan African Resources.

Project Description
Leveraging existing infrastructure, Egoli can increase Evander Mines’ production profile with relatively low capital costs and within a relatively short time frame.

The Egoli project is a standalone underground operation that will use existing mining and metallurgical infrastructure, including Evander Mines’ 7 Shaft’s hoisting systems and processing facilities at Kinross’s metallurgical plant.

Egoli will be accessed directly from 7 Shaft’s 15 Level using existing declines to 19 Level, where a new on-reef decline will be established to access the orebody to 23 Level.

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. The internal feasibility study will be revised on completion of mineral reserve delineation drilling that is currently in progress.

Capital Expenditure
Peak funding is estimated at R1.05-billion.

Planned Start/End Date
The project is expected to take 20 months to complete once the revised feasibility study is complete and board approval has been obtained. Ramp-up to steady-state production is expected to take 16 months thereafter.

Latest Developments
All the required permits for the Egoli project, including Evander Mines’ mining right, being valid until 2038, have been approved.

Meanwhile, Pan African has reported that Egoli’s first phase development, which involved dewatering the 3 Decline infrastructure to 19 Level, was completed in the 2024 financial year ended June 30.

The second phase includes establishing a drilling platform on 19 Level, in the first quarter of the 2025 financial year, from which long-inclined boreholes will be drilled to accurately define short-term grade variability and geological structures.

Key Contracts, Suppliers and Consultants
Rosond (drilling);  and inhouse feasibility studies.

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