Aim- and JSE-listed gold miner Pan African Resources increased its production of gold by 2% in the financial year ended June 30 to a record 205 459 oz, exceeding its most recent upwardly revised production guidance of 200 000 oz.

Its Barberton Mines’ Fairview underground operations and the Barberton tailings retreatment plant’s surface operations performed well during the reporting period, producing 47 985 oz and 19 560 oz, respectively.

The Fairview mine experienced increased flexibility established at this mine's high-grade Main Reef Complex and Rossiter orebodies.

Performance from Barberton’s smaller Sheba and Consort underground operations were below expectations at 27 587 oz, with Pan African to implement improvement programmes to ensure these assets deliver to their full potential.

The Elikhulu tailings retreatment operation processed tonnages with volumes and head grade both in excess of the mining plan, which improved gold production levels when compared with the 2021 financial year.

Notwithstanding, production levels were negatively impacted by adverse weather conditions and lower-than-anticipated recoveries.

Going forward, production is expected to improve as re-mining of the Leslie/Bracken tailings facility starts in the 2023 financial year.

Pan African highlights that Elikhulu remains one of the lowest-cost gold mining operations in Southern Africa, with a remaining operational life of 11 years.

Evander’s 8 Shaft pillar significantly outperformed its planned gold output for the reporting period, with a remaining life of just over a year.

This mine’s 24 Level project is currently in the construction phase, while the refrigeration plant is expected to be commissioned in August. Mining of the 24 Level ore will extend the production profile of the underground mining at 8 Shaft, post-extraction of the 8 Shaft pillar, for an additional two-and-a-half years. This will serve to maintain Evander Mines’ underground gold production.

Further, Pan African is proceeding with plans to mine the down-dip extent of the Evander orebody at 25 and 26 Levels using the 24 Level infrastructure, with an on-reef decline layout.

The mining of 25 and 26 Levels demonstrates a “compelling” business case, says Pan African, further extending Evander Mines’ 8 Shaft’s production, post-cessation of mining at the 8 Shaft pillar and 24 Level, for an additional eight years.

Here, production is expected to be about 65 000 oz/y.

In addition, dewatering on 25 Level started during the reporting period, while blasting of development ends will take place in the 2023 financial year. Mining of the first stope is planned for the 2025 financial year.

Pan African CEO Cobus Loots says the group made meaningful progress with its production growth projects at Evander underground and at Barberton’s Royal Sheba. “Both projects are on schedule to start delivering within their anticipated production timeframes.”

Together, these projects will increase the 8 Shaft life-of-mine to 13 years, with potential to increase it further, should the inferred mineral resources be converted to mineral reserves. Evander Mines’ mining right is valid until 2038.

“A key focus area in the year ahead will be the smaller underground operations at Barberton, to ensure these assets perform to their full potential,” he says.

Other notable events that took place in the 2022 financial year include the Royal Sheba orebody being intersected on schedule, with extraction of a 10 000 t bulk sample in progress; the commissioning of a 10 MW solar photovoltaic plant at Evander; the first commercial harvest at Barberton’s blueberry project and the start of construction works for a water retreatment plant at Evander Mines, capable of recycling three-million litres a day and producing potable water.

Regarding the solar power plant, he says Pan African plans to generate 30 MW of solar energy by 2024, with commensurate cost savings of about R100-million, or $6.1-million, a year, and a large reduction in carbon emissions.

The miner also managed to reduce its senior debt by 71.5%, to $9.6-million, which is down from debt of $33.7-million in the 2021 financial year.

Going forward, Pan African expects to maintain its 2023 financial year gold production at about 200 000 oz.