MINERAL RESOURCES AND
MINERAL RESERVES REPORT
FOR THE YEAR ENDED 30 JUNE 2015
S TA K E H O L D E R S • G R O W T H • P R O F I TA B L E • S U S TA I N A B L E
Pan Africa MRMR report 2015.proof2.indd B
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ABOUT THIS REPORT
CONTENTS
Our vision and
investment case
Highlights
Who we are
Our business model
Operating assets
Group strategy
Group mineral resources
and mineral reserves
Group organic growth
Barberton Mines
Evander Mines
Phoenix Platinum
Glossary
Company information
2
3
4
6
8
10
12
14
16
32
50
59
ibc
SCOPE OF REPORT
• Mineral reserves tables by group and commodity
This abridged version of the Pan African Resources
Mineral Resources and Mineral Reserves Report
2015 (MR&MR) conforms to the standards
determined by the South African Code for the
Reporting of Exploration Results, Mineral Resource
and Mineral Reserve (the SAMREC Code, 2007
edition) and forms part of Pan African Resources’
Integrated Annual Report including the annual
financial statements for the year ended 30 June 2015.
The other major document in this suite of reports
is the Sustainable Development Report 2015. The
entire suite of documents will be available in full on
www.panafricanresources.com in due course,
following publication of Pan African Resources’
annual financial statements including a full MR&MR.
• Development sampling results and ore reserve
projects
The mineral resource is inclusive of the mineral
reserve component, unless otherwise stated.
Information is presented either by operation, mine
or project, as indicated. The tables and graphs used
to illustrate developments across the operations of
Pan African Resources in FY15 include:
• Mineral resources tables by group and commodity
• Mineral reserves modifying factors
• Appointed competent persons.
Matters on which detail is provided in this
abridged version include regional geology, location,
exploration drilling and organic ore reserve projects.
Note, rounding of numbers in this document may
result in minor computational discrepancies.
REPORTING CODE
The guiding principle in the MR&MR is to ensure
integrity, transparency and materiality in informing
all stakeholders on the status of the group’s
mineral asset base. Pan African Resources uses the
SAMREC Code which sets out the internationally
recognised procedures and standards for reporting
Mineral Resources and Mineral Reserves in South
Africa, developed by the South African Institute
of Mining and Metallurgy as the recommended
guideline for reserve and resource reporting for
JSE-listed companies. Distinct effort has also been
made to comply with AIM Rules for Mining and Oil
and Gas Companies of the London Stock Exchange.
GOLD
Relationship between exploration results, mineral resources and mineral reserves showing Pan African
Resources attributable resources and reserves as at 30 June 2015.
EXPLORATION RESULTS
RESERVES
Total 10.4Moz Au
RESOURCES
Total 31.9Moz Au
Inferred
9.2Moz Au
Indicated
Probable
20.5Moz Au
9.4Moz Au
Measured
Proved
2.2Moz Au
0.9Moz Au
PGEs
Relationship between exploration results, mineral resources and mineral reserves showing Pan African
Resources’ attributable resources and reserves as at 30 June 2015.
EXPLORATION RESULTS
RESOURCES
Total 0.6Moz PGEs
RESERVES
Total 0.5Moz PGEs
Inferred
0.1Moz PGEs
Pan Africa MRMR report 2015.proof2.indd C
Indicated
Probable
0.4Moz PGEs
0.4Moz PGEs
Measured
Proved
0.1Moz PGEs
0.1Moz PGEs
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
PAN AFRICAN RESOURCES’
REPORTING IN COMPLIANCE
WITH THE SAMREC CODE
To meet the requirement of the SAMREC Code that
the material reported as a Mineral Resource should
have “reasonable and realistic prospects for eventual
economic extraction”, Pan African Resources has
determined an appropriate cut-off grade which has
been applied to the quantified mineralised body.
In determining the mineral resource cut-off grade,
Pan African Resources uses a gold price of
R500,000/kg. At our underground mines, the
optimal cut-off is defined as the lowest grade at
which an orebody can be mined such that the total
profits, under a specified set of mining parameters,
are maximised. The mineral resources optimiser
tool that was accordingly developed in-house was
applied to the mineral resource inventory.
The optimiser programme requires the following
inputs to convert the mineral resources to the
mineral reserves:
• The database inventory of all mineral resource
blocks
• An assumed gold price – ZAR400,000/kg
1
• Mine call factor (MCF)
• Plant recovery factors
• Planned cash operating costs and other
efficiency factors, which are calculated using
historical achievements as a baseline.
The mineral reserves represent that portion of
the Measured and Indicated Mineral Resources
above cut-off in the life of mine plan, and have been
estimated after consideration of the modifying
factors affecting extraction. A range of disciplines
has been involved at each mine in the life of mine
planning process including geology, surveying,
planning, mining engineering, rock engineering,
metallurgy, financial management, human resources
management and environmental management.
The competent person for Pan African Resources,
Mr Barry Naicker, the group mineral resource
manager, signs off the MR&MR for the group. He is a
member of the South African Council for Scientific
Professions (400234/10). Mr Naicker has 14 years
of experience in economic geology and mineral
resource management. He is based at 1st Floor,
The Firs, cnr. Cradock and Biermann Avenues,
Rosebank 2196, Gauteng.
• Planned production rates for each mine
The guiding principle in the
MR&MR is to ensure integrity,
transparency and materiality in
informing all stakeholders on the
status of the group’s mineral
asset base.
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2
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
OUR VISION
To continue to build a precious metals business in Africa
by remaining focused on our four strategic pillars.
INVESTMENT CASE
Pan African Resources is a mid-tier African-focused
precious metals producer.
Proven business model, committed
to low-cost production and
optimising extraction efficiency
Delivering consistent returns
• Attractive dividend yield
• High margin assets allow for dividend
• Culture of delivery – Barberton Mines’
BTRP and Evander Mines’ ETRP
• Quality assets delivering good returns
• Focused on strong and sustainable margins
• Total mineral resources gold of 31.9Moz
and 0.6Moz of platinum group elements
• People focused
to be maintained
• Robust statement of financial position
Disciplined approach
to capital management
•
Management team that continues
to drive shareholder value
Preferred gold investment
Committed to sustainability
• Profitable production growth from
•
•
long life assets
•
•
Significant resource and reserve base
Ability to conclude further value
accretive
acquisitions
• Strong track record of replenishing
Focused on achieving zero
harm
responsible
Legacy of environmentally
mining
• Strong relationships with labour,
government and communities
mineral reserves by targeting exploration and
development to increase the life of mine
People
Fostering relationships through
action, integrity and honesty
Pan Africa MRMR report 2015.proof2.indd 2
Action
Leadership, planning and control
Results
Delivering on all our targets without compromise
Maximise sustainable gold
Positive impact on earnings
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
3
HIGHLIGHTS
S
TA
S
in context of our four strategic pillars
KEHOLDER
MINERAL TENURE
Stakeholder
LONGEVITY in operations
Local
Organised
ETRP performing as anticipated
O F I TA B L E
S TA I N A B L E
4.6g/t
Phoenix Platinum:
(headgrade – g/t)
3.3g/t
ORGANIC GROWTH PROJECTS
PGEs 0.6MOZ
BROWNFIELD PROJECTS
EVANDER SOUTH, ELIKHULU (TAILINGS PLANT),
POPLAR AND ROLSPRUIT
LIFE OF MINE
3.0%
BARBERTON MINES
20 YEARS
EVANDER MINES
16 YEARS
ETRP in PRODUCTION
PHOENIX PLATINUM
28 YEARS
Life of mine INCREASED
BTRP
15 YEARS
ETRP
16 YEARS
PGEs 0.5Moz DOWN
Pan Africa MRMR report 2015.proof2.indd 3
Evander Mines:
BARBERTON MINES – MRC OREBODY EXTENSION,
CLUTHA MINE AND EVANDER SHAFT 8 – 26 LEVEL
Gold 10.1Moz UP
OW TH
10.9g/t
Gold 31.9MOZ
MINERAL RESERVES
GR
Barberton Mines:
BTRP at steady state production
MINERAL RESOURCES
SU
ECONOMIC
DEVELOPMENT
LABOUR
HIGH GRADE/
LOW COST producer
PR
ENGAGEMENT
3.9%
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4
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
WHO WE ARE
ORGANISATIONAL STRUCTURE
100%
Emerald Panther Investment 91 Pty
Ltd (Incorporated in South Africa)
100%
Evander Mining Operations
Dormant
100%
Evander Gold Mining Pty Ltd
(Incorporated in South Africa)
Barberton Mines Pty Ltd
(Incorporated in South Africa)
100%
Evander Gold Mines Ltd
(Incorporated in South Africa)
100%
PT Sands Pty Ltd
(Incorporated in South Africa)
Barberton Mining Operations
100%
Phoenix Platinum Mining Pty Ltd
(Incorporated in South Africa)
Phoenix Platinum, Chrome Tailings
Retreatment Project
100%
Pan African Resources Management
Services Company Pty Ltd
(Incorporated in South Africa)
Dormant
100%
Pan African Resources Funding
Company Pty Ltd (Incorporated in
South Africa)
Group treasury company
Management services company that
provides management services to
operations
Note 1: During the year, Pan African Resources announced the acquisition of the Uitkomst Colliery from Shanduka (related party) and its joint venture operating partner. This acquisition is
subject to suspensive conditions typical for a transaction of this nature.
OUR HISTORY
Acquired 74% of
Barberton Mines from
Metorex Limited
Incorporated
as Viking
Internet PLC
in February
Finalised the acquisition of
100% of the share capital of
Evander Mines for a total
net purchase consideration
of ZAR1.3 billion
Admitted to
AIM in May
Commissioned
Barberton Tailings
Retreatment Plant
2013
2007
2000
2009
2001 – 2006
2015
Exploration phase
Acquired the remaining
26% of Barberton
Mines from Shanduka in
exchange for 295.7 million
shares in the company
Pan Africa MRMR report 2015.proof2.indd 4
Exercised the option to
acquire 100% of Phoenix
Platinum from Metorex
for cash in May
Commissioned
Evander Tailings
Retreatment Plant
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
1
OUR OPERATIONS
Pan African Resources is a
mid-tier African focused precious
metals producer with quality
assets in South Africa
Towns close to project locations
Towns and cities on main roads
Provinces
2
Neighbouring country
Kruger
National
Park
LIMPOPO
MPUMALANGA
BOTSWANA
Nelspruit
Rustenburg
Zeerust
NORTH WEST PROVINCE
3
1
GAUTENG
Middelburg Barberton
Pretoria
Johannesburg
Witbank
2
Secunda
Ermelo
Potchefstroom
Vryburg
Klerksdorp
NORTHERN CAPE
Kuruman
Taung
3
FREE STATE
KWAZULU-NATAL
5
Barberton Mines is a low cost,
high grade, greenstone belt
producing operation which has
contributed significantly to Pan
African Resources’ successful track
record. Barberton Mines production
capacity is 95,000oz Au from
underground and 20,000oz from
Barberton Tailings Retreatment
Plant (BTRP) per annum
The acquisition of Evander Mines
in 2013 was transformational for
Pan African Resources as it paved
the way for the company to
become a mid-tier gold producer
with a strong, long-term project
pipeline. Evander Mines production
capacity from underground
operations is 95,000oz per annum
and from the ETRP 10,000oz
per annum
Phoenix Platinum is a tailings
retreatment plant designed to
extract 10,000oz of platinum group
metals per annum from chrome
tailings
For further information on our operations and operating assets refer to pages 8 and 18.
KEY FEATURES
African mid-tier precious metals business
Cash flow generative and dividend paying
• Quality assets producing approximately 215,000oz of gold
per annum
• Progressive dividend policy and track record of sector leading
dividend payouts
• Focused on maintaining and increasing profitable production
ounces
• Historic dividend yield in excess of 6%
Dual listed on London’s AIM and South Africa’s JSE
• Low level of gearing with strong balance sheet
• Access to funding facilities of ZAR1.2 billion
• Market capitalisation at 30 June 2015 of ZAR3.3 billion
Significant growth projects
• Diversified shareholder base, major South African and
international institutions
• Resources base in excess of 31Moz
• Shanduka Resources as empowerment partner with 23.83%
direct shareholding, equating to an effective 26.2% black
economic empowerment (BEE) ownership for the purposes
of the Mineral and Petroleum Resources Development Act
(MPRDA). More detail on this transaction can be found
in our sustainable development report on the
group website www.panafricanresources.com
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6
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
OUR BUSINESS MODEL
BARBERTON MINES AND BARBERTON
TAILINGS RETREATMENT PLANT (BTRP)
• Fairview, Sheba and Consort mines produce
~95koz of gold per annum
• Average tonnages milled ~300kt in excess
of 10g/t
• BTRP produces ~20koz
of gold per annum
• BTRP processing capacity of 1.2 million
tonnes per annum at a headgrade of 1.4g/t
PAN AFRICAN RESOURCES USES THE
SIX FORMS OF CAPITAL IN ITS BUSINESS
ACTIVITIES TO CREATE STAKEHOLDER
VALUE
FINANCIAL CAPITAL
• 8 Shaft produces ~95koz
per annum
ZAR1.2 billion
MANUFACTURED CAPITAL
Property, plant and equipment of
of gold
per annum
of gold
4,326 employees
1,095 contractors
5g/t – 7g/t
• ETRP produces 10koz
of gold per annum from
tailings processing
• ETRP processing capacity of
2.4 million tonnes per annum
at a headgrade of 0.3g/t
and
INTELLECTUAL CAPITAL
Barberton and Evander Mines mining and
prospecting licences, key personnel for
managing the BIOX®
SOCIAL AND RELATIONSHIP
NATURAL CAPITAL
million
1,376,815Gj of electricity and
12,249m2 of water used by
PHOENIX PLATINUM CHROME
TAILINGS RETREATMENT PLANT (CTRP)
• CTRP produces ~10koz
per annum
IT
CAPITAL ZAR20.8
invested in communities
process
IV
CT
OUR A
R INPUTS
ZAR3.5 billion
OU
215koz
• Average 8 Shaft tonnages
milled ~400kt at between
in available funding facilities
HUMAN CAPITAL
PRODUCES
in excess of
EVANDER MINES AND EVANDER
TAILINGS RETREATMENT PLANT (ETRP)
IE
of PGE
PRODUCES
• CTRP processing capacity
S
AN
D O
UTPUTS
~10koz
~300kt per annum
of PGEs
per annum
group operations
OTHER ACTIVITIES
• Growing the business through
organic and acquisitive opportunities such as:
–
–
–
EXTERNAL ENVIRONMENT
Pan Africa MRMR report 2015.proof2.indd 6
Evander South Project
Elikhulu Tailing Retreatment
Project
Uitkomst Colliery
Gold
market
Capital
and foreign
exchange
markets
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
7
ONE
FATALITY
ACCIDENT RATES PER
MILLION MAN HOURS
TRIFR 11.14
LTIFR 2.29
RIFR 1.11
1,376,815Gj
OF ELECTRICITY USED
REVENUE GENERATED
ZAR2,539.4 million
12,249m3
OF WATER
USED
THERE ARE SOME IMPACTS
ON HUMAN AND
NATURAL CAPITAL THAT
ARE INHERENT TO MINING
ACTIVITIES
– ZAR2,441.0 million gold revenue
– ZAR98.4 million PGE revenue
VALUE DISTRIBUTION
EMPLOYEES
OU
ES
R OU
TC O M
ZAR910.8 million
R I M PAC T S
CARBON EMISSIONS
OU
OF 0.1tCO2e/t
MILLED
SHAREHOLDERS
dividends paid in
December 2014
ZAR258 million
GOVERNMENT
ZAR282.3 million
including income tax, royalty,
skills development levy, PAYE
CSI and SED spend of
ZAR20.8 million
REINVESTED in infrastructure
ZAR352 million
Regulatory
environment
Pan Africa MRMR report 2015.proof2.indd 7
Energy
constraints
Labour and
communities
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8
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
OPERATING ASSETS
Pan African Resources is a mid-tier African-focused precious metals producer
with a production capacity of 215,000oz gold and 10,000oz
PGEs per annum. The group’s assets include:
• BARBERTON MINES: three gold mines and the BTRP in Mpumalanga
• EVANDER MINES: a gold mine in Mpumalanga, ETRP and several
brownfield projects
BARBERTON
• PHOENIX PLATINUM: the CTRP in the North West province
Ownership
Life of mine
100%
20 years
Location
New Consort Mine
Sheba Mine
Fairview Mine
Number of employees: 1,826
Number of contractors: 422
BARBERTON TAILINGS
RETREATMENT PLANT (BTRP)
National roads
Mining licence
100%
New Consort Mine
Sheba Mine
Fairview Mine
Number of employees: 56
Number of contractors: 38
National roads
Mining licence
100%
EVANDER MINES
15 years
Leandra
16 years
Kinross
Poplar
Rolspruit
Evander 8 shaft
Evander 7 shaft
Evander South
Number of employees: 2,415
Number of contractors: 570
ETRP
Secunda
Elikhulu
EVANDER TAILINGS
RETREATMENT PLANT (ETRP)
National roads
Mining licence
100%
16 years
Leandra
Kinross
Poplar
Rolspruit
Evander 8 shaft
Evander 7 shaft
Evander South
Number of employees: 12
Number of contractors: 7
ETRP
Secunda
Elikhulu
National roads
Mining licence
PHOENIX PLATINUM
g
Pan Africa MRMR report 2015.proof2.indd 8
100%
28 years
Middelkraal dam
Buffelsfontein dams
Elandskraal dumps
and pits
Xstrata Kroondal Mine
Bapong
IFM
Kroondal dump
Number of employees: 3
Number of contractors: 58
Hartbeespoort dam
Mooinooi
N4
Buffelspoort dam
National roads
Mining licence
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
MINERAL RESOURCES (Moz)
MINERAL RESERVES (Moz)
Gold
Gold
PGEs
2.2
0.1
9.2
PGEs
1.0
0.1
31.9
0.6
10.4
20.5
0.4
9.4
Measured
Indicated
Inferred
Operational statistics
Located in a greenstone belt, this is a low
cost, high grade operation comprising three
mines: Fairview, Sheba and New Consort
and a recently commissioned tailings
retreatment plant (BTRP).
Production (tonnes milled):
Produced (oz/annum):
Capacity:
Tonnage (capacity):
Headgrade:
Plant feed grade:
Sustainable capital per annum:
Mining Charter rating: 3
0.1
0.5
0.4
Proved
Description
9
Probable
Resources and Reserves
260,749
81,493
95,000oz of Au per annum
300,000
10.0g/t – 11.0g/t
10.7g/t
ZAR115 million
Resources: 9.0Mt @ 10.7g/t (3.0Moz)
Reserves: 4.3Mt @ 10.1g/t (1.4Moz)
Exploration: Ongoing
Cash cost: USD840oz
Acquired: 74% from Metorex 2007: remaining
26% from Shanduka 2009
Located at Barberton Mines, the
R320 million gold tailings retreatment
plant commenced construction in April
2012, was completed on schedule and
within budget, and achieved its inaugural
gold pour in June 2013.
Mining Charter rating: 3
Located in the Witwatersrand basin,
current operations comprise No. 8 Shaft,
several potential development projects
– Poplar, Evander South, Rolspruit and
Elikhulu (a surface tailings retreatment
project), the Kinross metallurgical
processing plant and tailings storage facility.
Mining Charter rating: 3
A tailings retreatment project which will
exploit historically generated gold tailings
deposited in the Kinross tailings storage
facility and surface sources.
Mining Charter rating: 3
Production (tonnes milled):
Produced (oz/annum):
Capacity:
Tonnage (capacity):
Headgrade:
Plant feed grade:
Sustainable capital per annum:
971,627
24,283
25,000oz of Au per annum
1.2 million
1.4g/t
1.4g/t
ZAR2 million
Resources: 20.4Mt @ 1.3g/t (0.9Moz)
Reserves: 13.4Mt @ 1.5g/t (0.6Moz)
Exploration: Ongoing
Cash cost: USD480oz
Developed: Steady-state production commenced in 2013
Production (tonnes milled):
Produced (oz/annum):
Capacity:
Tonnage (capacity):
Headgrade:
648,209
63,558
95,000oz of Au per annum
655,000
5.0g/t – 7.5g/t (includes
development waste tonnes)
Plant feed grade:
3.2g/t
Sustainable capital per annum: ZAR140 million
Resources: 83.5Mt @ 9.7g/t (25.9Moz)
Reserves: 28.8Mt @ 8.5g/t (7.9Moz)
Exploration: Ongoing
Cash cost: USD1,291oz
Acquired: 100% from Harmony in March 2013
Production (tonnes milled):
Produced (oz/annum):
Capacity:
Tonnage (capacity):
Headgrade:
647,167
6,523
10,000oz of Au per annum
2.4 million
Tailings: 0.32g/t
Surface feedstock: 1.0g/t – 1.75g/t
Plant feed grade:
0.5g/t
Sustainable capital per annum: ZAR2 million
Resources: 205.3Mt @ 0.3g/t (1.9Moz)
Reserves: 38.1Mt @ 0.3g/t (0.4Moz)
Exploration: Ongoing
Cash cost: USD688oz
Developed: Steady-state production commenced in 2015
Phoenix is a tailings plant which extracts
platinum group metals from chrome tailings.
Mining Charter rating: 3
Production (tonnes milled):
Produced (oz/annum):
Capacity:
Tonnage (capacity):
Headgrade:
Plant feed grade:
Sustainable capital per annum:
262,119
10,245
12,000oz of PGEs per annum
240,000
3.7g/t
3.3g/t
ZAR1 million
Resources: 6.0Mt @ 3.1g/t (0.6Moz)
Reserves: 4.8Mt @ 3.2g/t (0.5Moz)
Exploration: Ongoing
Cash cost: USD578oz
Developed: Steady-state production commenced in 2012
Pan Africa MRMR report 2015.proof2.indd 9
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10
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
GROUP STRATEGY
Pan African Resources has an exceptional asset base and attractive growth
opportunities, in both established projects and brownfield exploration prospects.
Strategy in this regard is based on global best practice in mineral resource
management (MRM) to aggressively explore and develop projects that will become
next generation long-term business units.
This strategy includes:
•
Improving the conversion of mineral resources to mineral reserves by accessing, developing and
exploiting underground orebodies and surface assets
•
•
Unlocking the value of major organic projects
Identifying new expansion opportunities to sustain growth.
ST
AK
EHOLDE
RS
PR
SU
O F I TA B L E
S TA I N A B L E
G RO
W TH
•
•
Mineral tenure secured
•
Mineral Resource
Gold 31.9Moz, PGEs 0.6Moz
•
Compliance with all relevant
South African labour legislation
Mineral Reserve
Gold 10.4Moz, PGEs 0.5Moz
•
Compliance with MPRDA,
Mining Charter and
implementation of social and
labour plans
Organic growth projects:
Evander Shaft 8 – 26 level,
Fairview Mine – MRC
orebody
Brownfield projects:
Elikhulu, Evander South, Poplar,
Rolspruit
Accretive acquisitions
•
•
•
Cash-generative
•
•
Proactive, strong
relationships with regulators,
organised labour and
communities
Pan Africa MRMR report 2015.proof2.indd 10
•
•
•
•
High grade/low cost
producer
Barberton Mines: 10.9
Evander Mines: 4.6
Phoenix Platinum: 3.3
(Headgrade – g/t)
•
•
Attributable profit
Attractive dividend
Continual low cash cost
gold production
Life of mine (LOM)
– years:
Barberton Mines – 20
Evander Mines – 16
Phoenix Platinum – 28
BTRP – 15
ETRP – 16
Earnings per share
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
11
The evolution of a project from initial testing to commissioning can take 12 to 18 months or longer, and
involves a series of study stages to reach investment approval and implementation.
We distinguish the group from our peers by having a clear focus on growth and only mining resources
that must be profitable in all parts of the price cycle, in order to deliver long-term economic value to
Pan African Resources. The graph below demonstrates the group’s mineral assets within the value chain
and how value is released through projects such as the BTRP and ETRP.
DEVELOPMENT
PROJECT
EXPLORATION
MINE CONSTRUCTION
Proved
Probable
Indicated
Inferred
Reconnaissance
Mineral
Reserves
Barberton Mines
Evander 8 Shaft
Measured
Mineral
Resources
MINE
PRODUCTION
Evander 7 Shaft
No.3 Decline
Elikhulu
Phoenix Platinum
BTRP
ETRP
Rolspruit
Poplar
PROJECT VALUE
Evander South
DESK TOP STUDY
FEASIBILITY
STUDY
PROJECT
COMMISSIONING
DISCOVERY
Project life cycle of mineral assets at Pan African Resources
HIGHLIGHTS
Exploration drilling at Barberton Mines, confirming the down dip extension of the high grade
11 Block of the main reef complex (MRC) orebody by a further 170 metres. Annual increase in
Barberton Mines’ mineral reserves by 236,162 ounces
Positive results of the ETRP, feasibility study undertaken on the viability of constructing “Elikhulu”
Internal technical team has been assigned to assess the merits of progressing the Evander South
brownfield project to the level of a feasibility study
The Sheba and New Consort tailings dams will provide potential future sources of tailings and
will support the increased BTRP life of operation to 15 years (2014: 12 years)
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12
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
GROUP MINERAL RESOURCES AND
MINERAL RESERVES
The mineral resources and mineral reserves underpin the enterprise value of Pan African Resources, and the
group’s position on the mineral resources and mineral reserves is presented below.
GOLD
Group Mineral Resources
The total mineral resources for the group decreased from 33.5 million ounces (Moz) in June 2014 to 31.9Moz
in June 2015 – a gross annual decrease of 1.6Moz, or 4.8%. Of this variance, a decrease of 1.9Moz can be
attributed to Evander Mines and an increase of 0.3Moz to Barberton Mines.
As at 30 June 2015
Contained gold
Mineral Resources
Category
Tonnes
million
Grade
g/t
kg
Moz
Measured
6.5
10.35
67,471
2.2
Indicated
273.7
2.33
637,457
20.5
Inferred
38.6
7.43
286,990
9.2
318.8
3.11
991,918
31.9
Pan African Resources Total
The 0.3Moz positive variance in contained gold at Barberton Mines was a result of adding new mineral
resources from the extension of the MRC orebody on Fairview Mine.
The total decrease in mineral resources can be attributed to a lower gold price and inflationary cost drivers
in the reporting of the 2015 mineral resources.
Group Mineral Reserves
Pan African Resources’ mineral reserves increased from 10.1Moz in June 2014 to 10.4Moz in June 2015 – a
gross annual increase of 0.3Moz, or 3.0%.The 0.3Moz increase can be attributed to Barberton Mines.
As at 30 June 2015
Contained gold
Category
Mineral Reserves
Proved
Probable
Pan African Resources Total
Tonnes
million
Grade
g/t
kg
Moz
3.9
7.27
28,474
1.0
81.0
3.62
293,478
9.4
84.9
3.79
321,952
10.4
The total increase in the mineral reserves can be attributed to the conversion of mineral resources at
Barberton Mines, the extension of MRC orebody at Fairview Mine.
GROUP – GOLD 2015
N
RA
E
ER
AL
Pan Africa MRMR report 2015.proof2.indd 12
3.0%
MI
MIN
(4.8%)
RES
O U RC E S
LR
E S E RV E S
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
13
PGEs
Group Mineral Resources
The group’s total mineral resource PGEs did not change materially for the year under review.
As at 30 June 2015
Contained PGEs
Mineral Resources
Category
Tonnes
million
Grade
g/t
Measured
1.6
Indicated
3.2
Inferred
1.2
6.0
Pan African Resources Total
kg
Moz
2.46
3,879
0.1
3.66
11,574
0.4
2.90
3,446
0.1
3.14
18,899
0.6
Group Mineral Reserves
Pan African Resources’ mineral reserves PGEs decreased from 0.52Moz in June 2014 to 0.50Moz in June 2015
– a gross annual decrease of 20,000oz PGEs or 3.9 %.This was attributed to the re-mining of the Buffelsfontein
tailings dam.
As at 30 June 2015
Contained PGEs
Tonnes
million
Grade
g/t
Proved
1.6
Probable
3.2
4.8
Category
Mineral Reserves
Pan African Resources Total
kg
Moz
2.46
3,879
0.1
3.56
11,574
0.4
3.20
15,453
0.5
GROUP – PGEs 2015
(3.9%)
MI
MIN
0%
N
RA
E
ER
AL
RES
O U RC E S
Pan Africa MRMR report 2015.proof2.indd 13
LR
E S E RV E S
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14
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
GROUP ORGANIC GROWTH
The operations’ robust life of mine plans support the group business plans. Current exploration drilling as well as accessing and
developing the orebody were aggressively maintained during the year. The strategy of converting mineral resources to mineral
reserves was progressed by moving organic projects further up the mining value chain towards commissioning. The tables below
reflect the progress of near-mine growth projects that have contributed ounces to the mineral resources for the year.
Exploring the orebody: exploration drilling
Operation
Barberton Mines
Total metres
Number of
boreholes
Average
channel
width
cm
Number of
intersections
above
cut-off
Average
grade
g/t
Total
expenditure
Rm
15,491
157
130
72
19.79
8,5
632
12
132
8
16.3
0,6
–
–
–
–
–
–
Evander Mines
Phoenix Platinum
Highlights
Exploration drilling projects at Barberton Mines yielded positive results, confirming the down dip extension of the high grade
11 Block of the MRC orebody by a further 170 metres. This extension to the MRC orebody resulted in an annual increase in
Barberton Mines’ mineral reserves by 236,162 ounces, thereby extending the life of mine of Barberton Mines to 20 years.
The Fairview MRC orebody has been the primary gold contributor towards gold produced at Barberton Mines. This orebody is an
epigenetic hydrothermal lode-gold deposit with a strike length that ranges between 70m and 120m and also extending to depth.
Gold mineralisation is associated with arsenopyrite and pyrite with an average reserve grade of 35g/t has been declared for the
MRC. The mineralised widths range between 7m and 15m.
Recent borehole results of the 11 Block are detailed below:
Channel width
cm
Grade
g/t
687
53.30
Bh 5816
691
120.03
Bh 5849
1,626
50.22
Bh 5864
1,383
43.82
Borehole number
Bh 5940
MRC orebody at Fairview Mine
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
15
Accessing the orebody: on-reef development
Operation
Barberton Mines
Evander Mines
Phoenix Platinum
Total on-reef
development
metres
Average
grade
g/t
1,041
5.01
528
22.72
–
–
Developing the orebody: capital ore reserve projects – Barberton Mines
Project
Sheba – pillar development
Sheba – Edwin Bray to Thomas and Joe’s Luck area
Fairview – 11 Level Royal Reef
2015
metres
2014
metres
2013
metres
Potential
resource
target
oz
824
351
317
23,599
5
171
102
13,246
–
–
17,000
(Equipping)
Fairview – 1# one reserve opening
84
154
179
14,821
Fairview – 3 Shaft deepening
26
–
228
1,600
Fairview – (64 – 68) Level
447
295
601
840,704
New Consort – (33 – 45) PC
258
193
252
10,000
New Consort – MMR pillar development
–
173
129
new target
New Consort – 3 Shaft
327
253
–
900
Royal Sheba
165
–
–
206,750
Sheba Western Cross
295
71
–
30,022
Potential
resource
target
oz
Capital ore reserve projects: Evander Mines
Project
2 Decline 24 – 25 Level
25 A block ventilation
Pan Africa MRMR report 2015.proof2.indd 15
2015
metres
2014
metres
2013
metres
904
685
554
10
925
124
1,200,000
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16
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON MINES
HIGHLIGHTS
• Increased gold mineral reserves by 236,162 ounces, resulting in the extension of the life of mine to
20 years
• Remained one of the lowest cost producers in the South African gold industry
• BTRP continued to perform well – 80,100 tonnes per month at a recovered grade of 0.8g/t
CHALLENGES
• Four DMR section 54 safety stoppage instructions halted production for a total of six days
• An oil contamination in the BIOX® plant negatively impacted production
• Production tonnes below targets
LOOKING AHEAD
• Achieving and maintaining production targets
• Achieving planned capex projects to establish new ore reserves
• Exploring new retreatment projects to extend the life of the BTRP and possible additional gold from
other sources
• Continuing to maintain costs
Barberton Mines consists of three mines: Fairview,
Sheba and New Consort, and now the BTRP.
Fairview produces 50% of Barberton Mines’ gold production with Sheba and New Consort
producing 30% and 20%, respectively. Operating three mines continues to provide flexibility and
versatility in terms of resource allocation.
The mix of high grade ore from the mines is planned monthly to maintain the targeted grade/
tonnage profile and gold production, giving Barberton Mines the advantage of managing cash flows
from an early stage in the mining process. The operation has a proven track record of consistently
delivering a solid performance, driven to a large extent by an embedded culture of cost control.
The mining methods used are an underground semi-mechanised up-dip cut and fill and up-dip
room and stick. An estimated 16%–18% of gold is recovered by sweeping and vamping contractors
focusing on worked-out areas and mining high grade pillars. Gold is extracted using the BIOX®
gold extraction process, an environmentally friendly process which uses bacteria to release gold
from the sulphide ore.
Gold was originally discovered in the Barberton area in 1886 and comprises the sediments
and metavolcanics within the Barberton Greenstone Belt. Barberton Mines has therefore been
mined for over a century with current production practices now embedded. Given the aged mine
infrastructure, the operations undergo ongoing maintenance and refurbishment.
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
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17
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18
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON MINES
Nelspruit
Malelane
N
4
LOCATION
Kaapmuiden
Barberton Mines is situated
in the Magisterial District
of Barberton, Mpumalanga,
Republic of South Africa,
some 370km east of
Johannesburg and 47km
south-east of Nelspruit.
The geographic location of
Barberton Mines is set out in
the map alongside. Barberton
Mines comprises Fairview
Mine, Sheba Mine, Consort
Mine and BTRP.
New Consort Mine
Sheba Mine
BTRP
Fairview Mine
Barberton
LEGEND
Mining licence
Prospecting licence
National road
Regional road
Railway
Barberton Greenstone Belt
0
Scale
Bulembu
20km
Int
ern
ati
on
al
bo
rde
r
Piggs Peak
SWAZILAND
REGIONAL GEOLOGICAL SETTING
The mineralisation at Barberton Mines is classified as Achaean epigenetic hydrothermal lode gold deposits
within a granite greenstone terrain. The distribution and localisation of these orebodies in the Barberton
Greenstone Belt (BGB) can be largely attributed to the combined influence of thermal metamorphism and
structural deformation. The BGB has produced approximately 11Moz of gold since the first discovery in the
early 1880s. Barberton Mines has produced more than 75% of the total production from the BGB.
GENESIS OF THE ORE IN BARBERTON
Metamorphic devolatisation of the mafic and ultra-mafic Onverwacht lava at the transition from greenschist
to amphibolite facies triggers the process by which fluid is released. These low-salinity fluids, which transport
gold as a reduced sulphur complex containing H2O, CO2 and H2S, are released, form mineral crystal structures
and can transport gold in solution to favourable depositional sites. It is calculated that a lava volume of ten
cubic kilometres is sufficient to have produced all the known gold mineralisation in the BGB. The Onverwacht
Group consists of approximately four thousand eight hundred cubic kilometres of potential parent material
lava. The stability fields of most of the common sulphides in the Barberton Mines ore (pyrite, arsenopyrite and
pyrrhotite) indicate that the gold complex in the transport fluid is Au(HS)2.
To facilitate metal deposition from the hydrothermal fluid, the pressure, temperature or chemical conditions
need to change. Most greenstone gold deposits form as a result of the mineralised fluid coming into contact
with an iron-bearing host rock. The Barberton Mines host lithologies are not high in iron content, so the ore
deposition occurred due to a drop in fluid pressure. Pressure shadows, which form during dilating, faulting
and folding, create low-pressure zones, effectively sucking the fluids into these spaces and releasing pressure.
When pressure is released, H2S (the ligand that makes gold soluble) is driven off, resulting in gold precipitation.
The Barberton ores are thus mineralised shears with gold occluded in sulphide minerals. The sulphides often
occur as massive assemblages in the shear structure. Lower ore grade disseminations of sulphide minerals in
the wall rock form as a result of the alteration process during fluid flow. A late stage of gold mineralisation
occurred when quartz veins formed in brittle fractures. These quartz veins often contain free gold in visible
clusters.
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
19
New Consort slimes dam
G
H
New Consort Mine
B Bullion
X+40,000
A
Lilly Fa
ult
Clutha Mine
To Kaapmuiden
Thomas and Joe’s Luck
Eureka Sy
ncline
Margaret, Mamba and Eureka
Sheba Mine
Royal Sheba Mine
X+45,000
Sheba Fault
N
M
L
Sheba slimes dams
Fairview slimes dam
Ulundi Syncline
BTRP
Barberton Mines
Fairview Mine
K
Barberton Mines BIOX® Metallurgical Plant
Barbrook Fault
X+50,000
Eagles Nest Mine
To Nel
spruit
n
onia
nd
ea
nc
lore
Dev
F
0
2km
Y-5,000
Y-10,000
LEGEND
Infrastructure
Main road
Town
Shaft
Mine Authorisation Boundary
New Order Prospecting Area
Geology
Nelspruit Suite
Kaap Vallei Tonalite
Onverwacht Group
Jameson Schist Belt
Moodies Group
Fig Tree Group
Zwartkoppies Formation
Fault
Y-15,000
Geological setting (sections are illustrated on the map along the mines to depict the mineralised geological structures)
GEOLOGICAL/RESOURCE ESTIMATION METHODOLOGY
The resource was classified according to guidelines compliant with the South African Code for Reporting of
Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC code, 2007).
Geological modelling
The grade and the structure in the ore shoots are highly erratic in nature, and most of the data for evaluating
resource blocks is derived from development adjacent to the mining blocks and from the position of the
present mining areas. The continuity of grade values within the ore shoots is derived primarily from shortrange statistical projections, based on experience that has been gained from historic mining of the orebody
and from the study of its tectonic structure.
The tectonic structure and orebody geometry has been modelled using the Lynx orebody modelling system.
This system allows the three-dimensional structure of the mineralised volume to be viewed graphically.
This is used as a tool for visualising grade continuity and is an aid for mine planning.
Pan Africa MRMR report 2015.proof2.indd 19
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20
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON MINES continued
Resource estimation
For both diamond-cored drill hole and underground sampling, a minimum sampling width of 230cm is used in
the case of mechanical mining, and 100cm for conventional scraper-type stoping. Where the reef width is less
than this value, hangingwall and footwall samples are included.
Measured reserve blocks are generally 20m on strike and 10m in the dip direction. Where blocks are defined
adjacent to a development end only, the grade and true width of the reef in the block are estimated by
calculating the arithmetic mean or ‘stretch average’ of the samples along the development end. If the sample
spacing is at the standard 3m, the block value is derived by calculating the average value of the samples. If the
sample interval is variable, the block is assigned the length-weighted arithmetic mean of the strip averages. If
the resource block is surrounded by sampling, either by previous stope sampling or development sampling, the
block is assigned values based on the mean of the surrounding sample stretches. In each case, one mean value
is determined for each channel sampling section first and the means are then averaged.
Exploration drill hole values are weighted by the inverse of the distance from the sampling to the centre of
indicated and inferred blocks.
Where an individual sample value is greater than 100g/t, the grade is capped at 100g/t. It has been found
historically that if sample values over 100g/t are capped, these abnormally high sample grade values will not
lead to over-valuation of the mean value of the stretch samples, which are used to assign values to nearby
resource blocks.
MINING RIGHTS
The mineral rights pertaining to Barberton Mines were issued by the Department of Mineral Resources in
terms of Item 7 of Schedule II of the Minerals and Petroleum Resources Development Act, 2002 (No. 28 of
2002) (MPRDA).
Mineral rights to Barberton Mines comprise three separate mining rights for the three different mining
operations. All three operations’ old order rights were converted to the sole and exclusive right to mine on
28 April 2011. The description of the mining area of all these mines is situated in the Mpumalanga Magisterial
District of Barberton and the commodity is gold. All three of these mining rights will continue to be in force
for a period of 10 years, ending on 27 April 2021.
Mine name
Mining licence
Mining area
Area (ha)
Expiry date
New Consort
Mine
MP 30/5/1/2/2/190
MR
Portions of the farms Dublin
302JU, Tinto 300JU, Segalla 306JU,
Whitwick 301JU and Barberton
Nature Reserve 964JU
2,520.81
27 April 2021
Fairview Mine
MP 30/5/1/2/2/191
MR
Portions of the farms Sheba 940JU,
Worral 352JU, Hayward 310JU,
Bramber East 314JU and Bickenhall
346JU
3,033.86
27 April 2021
Sheba Mine
MP 30/5/1/2/2/189
MR
Portions of the farms Camelot
320JU, Sheba 940JU and Sheba
Siding 939JU
1,705.06
27 April 2021
Mining method: Barberton has continued with the application of semi-mechanised cut and fill mining method.
Pan Africa MRMR report 2015.proof2.indd 20
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
21
FAIRVIEW MINE
L
K
Fairview Mine
GEOLOGY
Surface
Fairvie
+1 000m
11 Level Adit
cline
w 1 In
Wagon Road
Orebody
2
dy
F
MRC Shaft
23 Haulage
CO
ent
MR
mitm
rvi
54 Level:
Stoping
Fai
Rossiter
Stoping
ew
3I
ncl
ine
Com
MSL
iew
v
air
rebo
Ore
bod
MR
T
y
Or
eb
od
y
ne
cli
In
The Fairview Mine area
straddles the contact between
the Moodies Group to the
north (Eureka Syncline) and
the Fig Tree Group greywacke
and shale to the south (Ulundi
Syncline). The contact is
marked by the presence of the
Sheba Fault. The two synclines
are re-folded, back-to-back
isoclines that dip steeply
to the south. Tight isoclinal,
thrust fault-related anticlines
of Onverwacht Group schist
(Zwartkoppie Formation) occur
within the greywacke.
dy
Orebo
Hope
60 - 62 Level: Mining
64 - 68 Level: Le Roux & MRC
Exploration Drilling
-1 000m
0
500m
ZK
Orebody
LEGEND
Mined-out areas
Envelope of potential mineralisation
Dykes
Shafts
Tunnels
Geology at Fairview Mine
The Fairview Mine orebody is an epigenetic hydrothermal lodegold deposit. Three distinct types of
mineralisation occur in the mine:
• Refractory sulphidic ore, which constitutes the bulk of the ore, is hosted in the greywacke and shale
sequence of the Fig Tree Group.The mineralisation is found in close association with an anastamosing shear
system that often parallels the stratigraphy. Auriferous pyrite and arsenopyrite mineralisation is confined to
ribbon-like shoots within the shear system and as disseminations. The shears are often defined by quartzcarbonate veining, and the host rock can be sericitised and carbonated on either side of the shear.
• A coarse clastic unit of the Fig Tree Group hosts a series of hangingwall bodies. The unit consists of thickbedded to massive greywacke, grading into arenite with interbedded granule stone layers. Two quartzporphyry dykes and two dolerite dykes intrude the host rock sediments. Although the mineralised fractures
persist for up to 500m long, payable gold values are confined to several discrete ribbon-like payshoots.
Blue-black quartz veins and quartz-carbonate veins and stock-work are recognised in the hangingwall area.
The contacts and texture of the veins suggest a dilation fracture fill origin, rather than replacement origin.
Refractory gold-quartz-carbonate-sulphide ore occurs as disseminated to massive pyrite and arsenopyrite
mineralisation. The age relationship between the gold mineralisation and the quartz-porphyry dykes
suggests that the Hope Reef is marginally older and the Le Roux Reef is marginally younger than the quartz-
Pan Africa MRMR report 2015.proof2.indd 21
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22
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON MINES continued
porphyry dykes. The quartz-porphyry dyke that
intrudes into the Hope Reef mineralisation has
been dated at 3,050 million years.
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
0.00
50
• Quartz veins, containing free milling gold, occur
in the Moodies Group in the footwall of the
Sheba Fault. The blue-gray quartz veins fill nearvertical cross-cutting fractures in the siliceous,
brittle quartzite units. Gold mineralisation
generally occurs within the vein, but may
penetrate the adjacent host rock. Only minor
pyrite and arsenopyrite is associated with this
ore type.
45
40
35
30
25
20
Grade (g/t)
Tonnes
FAIRVIEW GRADE/TONNAGE CURVE
15
10
5
0
5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00
Cut-off grade (g/t)
Tonnage
The deepest intersection on a Fairview orebody is
at a depth of 1,600m below the adit elevation. The
orebody is open at depth.
Grade
Mineral Resources
As at 30 June 2015
Fairview Mine
Contained gold
Category
Tonnes
million
Grade
g/t
tonnes
Moz
Measured
Indicated
Inferred
1.86
1.23
1.00
8.08
23.96
21.78
15.02
29.53
21.74
0.48
0.95
0.70
Total
4.09
16.21
66.30
2.13
Mineral Reserves modifying factors
As at 30 June 2015
Fairview Mine
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
400,000
3.99
399
100
4
100.0
90.5
Mineral Reserves
As at 30 June 2015
Fairview Mine
Pan Africa MRMR report 2015.proof2.indd 22
Contained gold
Category
Tonnes
million
Grade
g/t
tonnes
Moz
Proved
Probable
0.60
1.22
10.21
21.03
6.13
25.75
0.20
0.83
Total
1.82
17.47
31.88
1.02
2015/10/28 4:06 PM
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
23
SHEBA MINE
M
N
Vantage – Goldfields Mining Area
Sheba Mine
Sheba ZK Shaft
Bonanza Mine
ody
F
Thomas and Joe’s Luck
Development
Royal Sheba
Shaft
ZK
Or
ebo
dy
reb
om
bi O
Int
Royal Sheba Mine
Sh
aft
G
27
Su
b-
In
cli
ne
H
ZK
Orebody
Proposed
future
development
0
500m
LEGEND
Mined-out areas
Envelope of potential mineralisation
Dykes
Shafts
Tunnels
Geology at Sheba Mine
SHEBA GRADE/TONNAGE CURVE
300,000
Pan Africa MRMR report 2015.proof2.indd 23
40
35
200,000
Tonnes
The Sheba section area straddles the contact
between the Moodies Group to the north
(Eureka Syncline) and the Fig Tree Group
greywacke and shale to the south (Ulundi Syncline).
The contact is marked by the presence of the
Sheba Fault. The two synclines are re-folded,
back-to-back isoclines that dip steeply to the
south. Tight isoclinal, thrust fault-related anticlines
of Onverwacht Group schist (Zwartkoppie
Formation) occur within the greywacke.
45
250,000
30
150,000
25
20
100,000
15
10
50,000
0
0.00
Grade (g/t)
GEOLOGY
50
5
0
5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00
Cut-off grade (g/t)
Tonnage
Grade
2015/10/28 4:07 PM
24
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON MINES continued
The Sheba orebody is an epigenetic hydrothermal lodegold deposit. Three distinct types of mineralisation
occur in the mine:
• Refractory sulphidic ore (MRC Section), which constitutes the bulk of the ore, is hosted in the greywacke
and shale sequence of the Fig Tree Group. The mineralisation is found in close association with a shear
system in the immediate hangingwall of greenschist anticlines of the Zwartkoppie Formation. Auriferous
pyrite and arsenopyrite mineralisation occurs as massive replacement veins within the shear system and
as disseminations.
• In the Zwartkoppie Section, visible gold and disseminated pyrite in the greenschist is the prominent
mineralisation, in association with shear and fracture hosted smoky and white quartz veins.
• The Royal Sheba mineralisation occurs within the Sheba Fault mylonite and shear zone in the footwall of a banded
chert-carbonate shale unit of the Fig Tree Group.
The deepest orebody intersection on Sheba is 1,200m below shaft collar elevation. The orebody is open at
depth.
Mineral Resources
As at 30 June 2015
Sheba Mine
Contained gold
Category
Tonnes
million
Grade
g/t
tonnes
Moz
Measured
1.80
5.98
10.76
0.35
Indicated
1.20
5.32
6.37
0.20
Inferred
1.19
4.65
5.51
0.18
Total
4.18
5.41
22.65
0.73
Mineral Reserves modifying factors
As at 30 June 2015
Sheba Mine
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
400,000
4.49
449
100
5
100
92.75
Mineral Reserves
As at 30 June 2015
Grade
g/t
tonnes
Moz
Proved
1.19
4.72
5.60
0.18
Probable
1.18
4.36
5.13
0.17
Total
2.36
4.54
10.73
0.35
Category
Sheba Mine
Pan Africa MRMR report 2015.proof2.indd 24
Contained gold
Tonnes
million
2015/10/28 4:07 PM
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
25
CONSORT MINE
B/G
7 Shaft
3 Shaft
MMR Payshoot
lin e
Sha
ft
PC Adit
3 Shaft Paysh
Inc
oot
ft Pay
shoo
PC
ot
Paysho
7 Shaft Payshoot
t
22 Level
7 Shaft
3 Sha
MMR Exploration
Drilling
PC Shaft
Exploration Drilling
MMR
MR
10 Level
M
Current Stoping
Sh
aft
ysh
Pa
Current Stoping
oo
37 Level
37 Level: Capital Development
t
37 Sub-incline Shaft
40 Level
Prospective
Paytrends
45 Level
Current Stoping
Current Stoping
Current Stoping
50 Level
Proposed
Future
Development
0
Sub-Incline21
Sub-Incline 22
49 Sub-Vertical Shaft
+++
+++
500m
LEGEND
Mined-out areas
Envelope of Potential Mineralisation
Pegmatites
Shafts
Geology at Consort Mine
GEOLOGY
The New Consort area can be divided into two distinctive synclinal structures,
termed the Three Shaft syncline and the Top Section syncline. The Shires structure,
which is a prominent north-south striking shear zone dividing these two synclines,
is intruded by a pegmatite.
CONSORT GRADE/TONNAGE CURVE
250,000
35
30
200,000
150,000
20
100,000
15
10
50,000
The deepest intersection of a New Consort
orebody is 1,450m below adit elevation. The
orebody is open at depth.
Grade (g/t)
25
Tonnes
The New Consort orebody is an epigenetic
hydrothermal lodegold deposit. Gold mineralisation
at the New Consort section is associated with
the contact between the underlying schist of the
Onverwacht Group and the overlying metapelite
of the Fig Tree Group. This contact is marked by
the presence of the Consort ‘bar’, a highly siliceous
banded chert. The Consort bar is thought to be a
silicified mylonite occupying the contact. A series
of north-dipping tabular pegmatites, termed the
MR pegmatites, displace the south-dipping Consort
contact and the mineralised shoots. Some scheelite
mineralisation has been recorded, associated with
the pegmatites. A lenticular body of fine-grained
siliceous amphibolite, termed the ‘footwall lens’,
occurs on the northern limb of the Top Section
syncline and is host to the mineralisation in the
PC and MMR shoots. Mineralisation consists of
arsenopyrite and visible gold associated with
fractures in the footwall lens. The Consort bar is
host to mineralisation in the 7 Shaft, 3 Shaft and
Ivaura areas.
5
0
0.00
5.00
10.00
15.00
20.00
25.00
30.00
0
35.00
Cut-off grade (g/t)
Tonnage
Pan Africa MRMR report 2015.proof2.indd 25
Grade
2015/10/28 4:07 PM
26
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON MINES continued
Mineral Resources
As at 30 June 2015
Grade
g/t
tonnes
Moz
Measured
Indicated
Inferred
0.37
8.93
3.34
0.11
0.22
0.13
11.33
12.14
2.47
1.57
0.08
0.05
Total
0.72
10.23
7.39
0.24
Category
Consort Mine
Contained gold
Tonnes
million
Mineral Reserves modifying factors
As at 30 June 2015
Consort Mine
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
400,000
5.74
574
100
5
90
89.98
Mineral Reserves
As at 30 June 2015
Grade
g/t
tonnes
Moz
Proved
0.05
8.62
0.46
0.02
Probable
0.11
8.15
0.86
0.02
Total
0.16
8.31
1.32
0.04
Category
Consort Mine
Pan Africa MRMR report 2015.proof2.indd 26
Contained gold
Tonnes
million
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
27
BARBERTON TAILINGS RETREATMENT PROJECT
Mineral Resources
Barberton Tailings Retreatment Plant (BTRP) as at 30 June 2015
BTRP
Contained gold
Category
Tonnes
million
Grade
g/t
tonnes
Moz
Measured
Indicated
Inferred
–
13.43
7.01
–
1.49
0.98
–
20.02
6.85
–
0.64
0.22
Total
20.44
1.31
26.87
0.86
Mineral Reserves modifying factors
BTRP as at 30 June 2015
BTRP
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
PRF
%
400,000
–
–
–
–
57.5
Tonnes
million
Grade
g/t
tonnes
Moz
–
–
–
–
Probable
13.43
1.49
20.02
0.64
Total
13.43
1.49
20.02
0.64
Mineral Reserves
BTRP as at 30 June 2015
Category
Proved
BTRP
Contained gold
The table below forms the keynotes to the sources of material that constitute the above mineral reserves.
Slimes dump
Fairview Bramber
Fairview Harper South
Fairview Harper North
Calcine Northern Segalla
Segalla
Total
Pan Africa MRMR report 2015.proof2.indd 27
Tonnes
Grade
g/t
Au content
kg
Ounces
oz
1,377,974
1,959,040
2,868,000
405,900
6,816,618
1.65
1.50
1.55
4.56
1.25
2,271
2,938
4,445
1,851
8,514
73,017
94,477
142,923
59,508
273,720
13,427,532
1.49
20,020
643,644
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28
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON MINES continued
RECONCILIATION OF MINERAL RESOURCES AND
MINERAL RESERVES
Mineral Resources reconciliation: 2014 to 2015
Balance as at end June 2014
Mined during 2014/2015
Addition
Balance as at end June 2015
Variance
Gold
kg
Gold
koz
117,909
2,874
10,834
125,869
7,960
3,790.9
92.4
348.3
4,046.8
255.9
Gold
kg
Gold
koz
56,910
2,874
7,387
61,423
4,513
1,829.7
92.4
237.5
1,974.8
145.1
Mineral Reserves reconciliation: 2014 to 2015
Balance as at June 2014 gold price R400,000
Mined during 2014/15
Addition
Balance as at June 2015 gold price R400,000
Variance
During the 2015 financial year, the following significant changes to resources and reserves occurred:
• Escalating cost with the resulting higher pay limit caused a loss of 212,000 tonnes and 30,600 ounces from
the total reserve
• Sheba – Development to access old boundary pillars increased the proved reserves by 00,000 tonnes at
00g/t
• Fairview – Re-blocking of the Drummond Reef from 18 to 22 level was done and this added 25,380 tonnes
at 5.90g/t
• Fairview – The MRC 11 reserve below 64 level increased from 528,470 tonnes at 32.5g/t to 707,620
tonnes at 34.3g/t, an increase of 7,096kg of gold
• Consort – Despite good drilling results and gains in the measured and indicated resources of 707kg the
rising pay limit resulted in a loss of 357kg proved and probable reserves
• The ongoing effort to re-visit old areas and capture of historical sampling and survey data of old mining areas is
allowing a continued process of vamping and remnant mining at all three Barberton Mines operations.
As a result of the changes detailed above, the Barberton Mines mineral resources inventory posted the
following changes for 2015:
• Barberton Mines mineral reserves increased by 236,161oz contained gold
• Barberton Mines mineral resources increased by 232,880oz contained gold
• Barberton Mines measured mineral resources increased by 91,968oz contained gold
• Barberton Mines indicated mineral resources increased by 242,913oz contained gold
• Barberton Mines inferred mineral resources decreased by 78,272oz contained gold.
As indicated in the table, Barberton Mines’ ore reserves as at 30 June 2014 reflected a year-on-year depletion
by mining of 92,401oz.
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Mineral Resources and Mineral Reserves Report 2015
29
MINERAL RESOURCES TABLE: BARBERTON MINES
Mineral Resources 30 June 2015
Operations
Classification
tonnes
g/t
kg
oz
Sheba
Measured
Indicated
Inferred
Total
1,801,200
1,196,800
1,185,500
4,183,500
5.98
5.32
4.65
5.41
10,764
6,369
5,513
22,646
346,069
204,781
177,247
728,097
Consort
Measured
Indicated
Inferred
Total
374,500
218,300
129,500
722,400
8.93
11.33
12.14
10.23
3,344
2,474
1,572
7,391
107,521
79,556
50,542
237,620
Fairview
Measured
Indicated
Inferred
Total
1,859,700
1,232,400
998,300
4,090,500
8.08
23.96
21.78
16.21
15,021
29,533
21,742
66,296
482,940
949,512
699,023
2,131,475
Total mines
Measured
Indicated
Inferred
Total
4,035,400
2,647,500
2,313,400
8,996,300
7.22
14.50
12.46
10.71
29,129
38,377
28,827
96,334
936,530
1,233,849
926,813
3,097,192
Slimes dumps
Measured
Indicated
Inferred
Total
Total
–
13,427,500
7,013,000
20,440,500
178,300
–
1.49
0.98
1.31
1.76
20,020
6,854
26,874
313
643,644
220,375
864,020
10,079
Surface ore
Mineral Resources 30 June 2015
Operations
Classification
Outside sections
Total Barberton
Pan Africa MRMR report 2015.proof2.indd 29
tonnes
g/t
kg
oz
Measured
Indicated
Inferred
Total
–
214,300
183,100
397,400
–
6.19
5.69
5.96
1,327
1,042
2,369
42,664
33,511
76,176
Measured
Indicated
Inferred
Total
4,035,400
16,467,700
9,509,500
30,012,600
7.22
3.65
3.86
4.19
29,129
60,037
36,724
125,890
936,530
1,930,236
1,180,699
4,047,466
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30
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON MINES continued
MINERAL RESERVES TABLE: BARBERTON MINES
Mineral Reserves 30 June 2015
Operations
Classification
tonnes
g/t
kg
oz
Sheba
Proved
Probable
Total
1,185,600
1,178,000
2,363,700
4.72
4.36
4.54
5,597
5,134
10,731
179,960
165,046
345,006
Consort
Proved
Probable
Total
52,700
105,500
158,200
8.62
8.15
8.31
455
860
1,315
14,614
27,664
42,278
Fairview
Proved
Probable
Total
600,300
1,224,200
1,824,500
10.21
21.03
17.47
6,131
25,745
31,876
197,108
827,729
1,024,837
Total mines
Proved
Probable
Total
Probable
Probable
1,838,600
2,507,700
4,346,400
13,427,500
178,300
6.63
12.66
10.11
1.49
1.76
12,183
31,739
43,992
20,020
313
391,682
1,020,440
1,412,122
643,644
10,079
Proved
Probable
Total
1,838,700
16,113,600
17,952,200
6.63
3.23
3.58
12,183
52,072
64,255
391,682
1,674,162
2,065,845
Slimes dumps
Surface ore
Total Barberton
As at 30 June 2015, Barberton Mines reported a mineral reserve of 2,065,845oz and mineral resource of
4,047,466oz contained gold. The measured and indicated mineral resources are inclusive of those resources
modified to produce the mineral reserves. Reserves are reported as mill-delivered tonnes at the contained
grade, having duly considered all modifying factors.
JD Verster, the chief surveyor at Barberton Mines, signs off mineral resources for Barberton Mines. He is a
member of the South African Council for Professional and Technical Surveyors (PLATO) (MS0014). Mr Verster
is based at Fairview Mine, GMO Building, Barberton, 1300. Mr Verster has confirmed in writing that the
information disclosed is compliant with section 12 of the JSE Listings Requirements and Table 1 of the SAMREC
Code, 2009, and that it may be published in the form and context in which it is intended.
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Mineral Resources and Mineral Reserves Report 2015
31
TOTAL MINERAL RESOURCES AND MINERAL RESERVES FOR BARBERTON MINES
Mineral Resources
As at 30 June 2015
Grade
g/t
tonnes
Moz
Measured
4.04
7.22
29.13
0.94
Indicated
16.47
3.65
60.04
1.93
Inferred
9.51
3.86
36.72
1.18
30.01
4.19
125.89
4.05
Category
Barberton Mines
Contained gold
Tonnes
million
Total
Mineral Reserves modifying factors
As at 30 June 2015
Barberton Mines
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
40,000
4.49
–
100
16
99.6
91.2
Mineral Reserves
As at 30 June 2015
Grade
g/t
tonnes
Moz
1.84
6.63
12.18
0.39
Probable
16.11
3.23
52.07
1.67
Total
17.95
3.58
64.25
2.06
Category
Proved
Barberton Mines
Pan Africa MRMR report 2015.proof2.indd 31
Contained gold
Tonnes
million
2015/10/28 4:07 PM
32
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER MINES
HIGHLIGHTS
• ETRP commenced in January 2015 – processing 200,000 tonnes per month at 0.31g/t
• Capital spend on ETRP was below budget
CHALLENGES
• Three DMR section 54 safety stoppage instructions halted production for a total of six days
• Underground mining operations and infrastructure constraints delayed production
turnaround – high grade mining cycle only commenced in June 2015
• Production tonnes below targets
LOOKING AHEAD
• Investigating the viability of constructing ‘Elikhulu’ – a tailings retreatment plant to
treat slimes at about 12 million tonnes per annum at a headgrade of 0.28g/t
• Assessing the merits of progressing the Evander South project up the value chain
Evander Mines exploits the Kimberley Reef
in the Evander basin, part of the greater
Witwatersrand basin. Mining methods
employed are underground conventional
scraper mining and rail bound equipment
with some trackless mechanised
development.
With No. 8 Shaft at a depth of 2.5km, it takes the workforce approximately an hour to
reach the mining area via a lift and locomotive and two chairlifts. The rock is then hauled
along 11 conveyors from the rock face to the bottom of No. 7 Shaft, where it is hoisted
to surface. The gold is extracted at a CIL hybrid plant.
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33
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34
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER MINES
Kriel
Poplar Ext.
Poplar
LOCATION
Evander Gold Mine is
located approximately
120km east-south-east from
Johannesburg in Mpumalanga.
It is close to Secunda, which
hosts the Sasol II Plant, which
exploits several coal seams in
the area.
Leandra
Rolspruit
Kinross
E8
Evander South
Evander 8
Evander
E10
Embalenhle
0
Scale
10km
Bethal
Trichardt
E7
E9
Evander South Ext.
N
17
E5
E6
E1
E2
E3
Secunda
LEGEND
Mining licence
Prospecting licence
National road
Regional road
Railway
Operational shaft
Shaft
Exploration in this area started in 1903 with the advent of diamond drilling and progressed, intermittently,
through various major exploration phases, up to the incorporation of the first mine (Winkelhaak Mine) in
1955. Since then, three other mines were brought into production – namely Leslie Mine, Braken Mine and
Kinross Mine.
Evander Mines’ mineral assets comprise a set of mineral resources that are from early prefeasibility studies to a
production mine.The current revenue streams for Evander Mines are generated from the Evander 8 Shaft and
re-mining of tailings. The principal economical horizon mined at Evander Mines is the Kimberley Reef, which
was deposited in the Witwatersrand sedimentary basin, ca 2,300 million years ago.
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Mineral Resources and Mineral Reserves Report 2015
35
EVANDER 8 SHAFT
Location
The Evander 8 Shaft is situated about 5km north-west of the town of Evander. It covers an area of 44km2. It
sits between Rolspruit to the north-west and 7 Shaft to the south-east. Mining occurs in the No. 2 Decline
area on the western side, at a depth of 2,100m to 2,300m below surface.
The Evander 8 Shaft is situated
in the distal part of the Evander
Basin. The Kimberley Reef is the
only economical horizon that
is mined. The Kimberley Reef is
situated stratigraphically in the
lower part of the Turffontein
Subgroup, which is in the upper
portion of the Central Rand
Group. The Kimberley Reef
presents the distal facies of a
fluvial placer that was deposited
by a system of braided-streams.
8 Shaft is currently mining the
western high-grade area of the
Kinross Payshoot (a payshoot
that extends for over 17km
from the south-east to the
north-west of the basin).
O
26 35’S
26 O30’S
26 O25’S
O
26 20’S
LEGEND
Reef loss (Normal Fault)
Reverse Fault
Suboutcrop of Kimberley Reef
Sugarbush Fault
Intermediate Suboutcrop
Stratigraphic Dip Direction
Kimberley Reef
Mined out area of Kimberley Reef
Evander West Prospecting Right
Compressional stress direction
GEOLOGY
lt
ush
Fau
arb
Sug
O
28 55’E
O
29 00’E
O
29 05’E
0
4km
Scale
O
29 10’E
O
29 15’E
Geology of Evander Mines
Geology
The reef is an oligomictic, pebbly conglomerate and comprises a composite sequence of channel-sediments
that define longitudinal gravel bars and sand bars with pebbly veneers. The reef in the area strikes in an eastwest direction and dips to the north at about 10 degrees. The area is also divided by two major normal faults,
striking in an east-north-east to west-south-west direction. The reef thickness varies from a waste on contact
(WOC) up to a 50cm well-developed oligomictic conglomerate. Average reef thickness is 35cm. High gold
values in the Kimberley Reef are mostly located at the base of the unit, and are associated with the presence
of carbon and some visible gold on the footwall contact.
Mineral Resources estimation
The estimation method used for generating local grade estimates on Evander 8 Shaft is ordinary kriging (OK).
The orientations and ranges of each geozone’s semi-variogram are used to determine the kriging search
parameters, and the estimation parameters are optimised. Estimates are kriged into 30m x 30m blocks for the
measured resources, 60m x 60m blocks for indicated resources and 120m x 120m blocks for inferred resources.
The measured and indicated resource models are then tested on cmgt kriging efficiency (KEFF) and slope of
regression (SR) and merged together with the inferred model to produce a combined kriged block model.
Underground exploration/development result
All underground borehole intersections are included in the estimation model. All new underground sampling
from stoping and development is added to update the estimation model.
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER MINES continued
Mineral Resources
As at 30 June 2015
Kimberley Reef
Evander Shaft 8 a
Contained gold
Category
Tonnes
million
Grade
g/t
tonnes
Moz
Measured
Indicated
Inferred
Total
1.90
2.86
7.50
12.27
17.04
15.63
10.58
12.76
32.4
44.7
79.4
156.6
1.04
1.44
2.55
5.03
Modifying factors
As at 30 June 2015
Kimberley Reef
Evander Shaft 8 a
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
400,000
9.86
1,243
126
Dilution
%
MCF
%
PRF
%
73.5
96.4
Mineral Reserves
As at 30 June 2015
Kimberley Reef
Evander Shaft 8
Pan Africa MRMR report 2015.proof2.indd 36
Contained gold
Category
Tonnes
million
Grade
g/t
tonnes
Moz
Proved
Probable
Total
2.05
3.37
5.41
7.90
7.34
8.14
16.2
28.1
44.3
0.52
0.90
1.42
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Mineral Resources and Mineral Reserves Report 2015
37
Life of mine plan (grade/tonnage curves)
24
22
20
18
16
14
12
10
8
6
4
2
0
22
20
18
16
14
12
10
8
Grade (g/t)
Tonnes (million)
EVANDER 8: GRADE/TONNAGE CURVE
(Measured/indicated resource)
6
4
2
0
0
2
4
6
8
10
12
14
16
Cut-off grade (g/t)
Tonnage
Grade
Mining rights
The mineral rights pertaining to Evander Mines were issued by the Department of Mineral Resources in terms
of Item 7 of Schedule II of the Minerals and Petroleum Resources Development Act, 2002 (No 28 of 2002)
(MPRDA) and were registered on 15 October 2010.
Mining licence
Type of
licence
Licence
number
Area
ha
Evander South
Prospecting
MP 30/5/1/2/2/248
PR
Evander South
Extension
Prospecting
E8
Mining
Expiry date
Status
2,551
17 October
2008
Renewal application
lodged
MP 30/5/1/2/2/4272
PR
11,189
19 October
2016
Renewal application
lodged
MP 30/5/1/2/2/126
MR
36,898
28 April 2038
Conversion
application approved
and in effect
Mining method: Evander 8 Shaft mining method is footwall development to reef horizon and then developing
on reef horizon (raise). The mining follows an upside down Christmas tree sequence to extract the reef
horizon. Old areas of the mine are also cleaned up by means of vamping activities.
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER MINES continued
EVANDER 7 SHAFT
The Evander 7 Shaft is located south-east of 8 Shaft (approximately 3km apart) and hoists 8 Shaft’s ore to surface. Due to the increased gold price
over the last few years, an opportunity arose to investigate the viability to reclaim ore via vamping operations at 7 Shaft. Other organic growth
projects include the 2010 payshoot at the No. 3 Decline at 7 Shaft.
Mineral Resources
As at 30 June 2015
Category
Kimberley Reef
Evander 7 Shaft vamping a
Measured
Indicated
Inferred
Total
Contained gold
Tonnes
million
Grade
g/t
tonnes
Moz
0.06
2.75
0.2
0.005
–
–
0.06
–
–
2.75
–
–
0.2
–
–
0.005
Dilution
%
MCF
%
PRF
%
85
96.4
Modifying factors
As at 30 June 2015
Kimberley Reef
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Evander 7 Shaft vamping a
Mineral Reserves
As at 30 June 2015
Category
Kimberley Reef
Evander 7 Shaft vamping a
Pan Africa MRMR report 2015.proof2.indd 38
Measured
Indicated
Inferred
Total
Contained gold
Tonnes
million
Grade
g/t
tonnes
Moz
0.03
3.76
0.12
0.004
–
–
0.03
–
–
3.76
–
–
0.12
–
–
0.004
2015/10/28 4:07 PM
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
39
EVANDER PROJECTS
The Evander gold assets also consist of exploration projects that are at varying stages of exploration and
development.The individual projects and level of study are summarised below and illustrated in the map below.
Poplar
O
Mineral Resources
Measured
Indicated
Inferred
Rolspruit
Mineral Reserves
Proved and Probable
Poplar Ext.
26 25’S
P op la r
26 20’S
PROJECTS
LEGEND
Shafts
Operational Shafts
Mined-out areas
O
ETRP
Evander 8
E8
E7
E5
E6
E1
26 30’S
Evander South
O
E10
E2
E9
26 O35’S
E3
Evander South Ext.
0
28 O55’E
O
29 00’E
O
29 05’E
Scale
4km
O
29 10’E
Location of Evander projects
• The Rolspruit Project is at
preliminary feasibility study
(PFS) stage with a PFS by
Turgis Consulting completed
in October 2011 and updated
in April 2012. Probable
mineral reserves of 6.46Moz
contained gold have been
estimated and declared for
the Rolspruit Project
• The Evander South Project
is at PFS level. A PFS was
undertaken by SRK in 2010.
A mineral resource of
4,92Moz is declared
• The Poplar Project has a
definitive feasibility study (DFS)
completed in 2003, which
was updated in 2006.
Subsequent exploration
drilling was undertaken to
define the mineral resource.
A mineral resource of 4.94Moz
is declared
• Evander Gold Surface Projects;
namely:
Pan African Resources (PAR) remains focused on creating shareholder value through unlocking the value of its
organic surface and brownfields exploration projects.
In this regard, shareholders are referred to the SENS announcement dated 12 February 2015, which announced
the successful commissioning of the ETRP and the first gold poured from the ETRP in January 2015.
The total construction capital spend on the ETRP was approximately R172 million, which is substantially below
the original R200 million project budget.
– The Elikhulu Project,
which is at PFS level,
with estimated indicated
mineral resources of
1.9Moz contained gold
– The ETRP mineral reserve
of 0.40Moz is declared
The ETRP has now successfully ramped up processing to nameplate capacity of 180,000 to 200,000 tonnes
per month. Gold production from the ETRP remains on target and PAR is pleased to announce recoveries in
line with and exceeding the 42% planned recoveries.
Growth projects at Evander Mines
In light of the positive results of the ETRP, the company has decided to undertake a feasibility study on the
viability of constructing “Elikhulu”, a tailings retreatment plant which can potentially treat slimes at a processing
capacity of up to 12 million tonnes per annum at a headgrade of 0.28g/t from the Winkelhaak, Leslie and
Kinross tailings storage facilities. The total mineral resource for Elikhulu is 165Mt @ 0.28g/t (1.5Moz).
Furthermore, an internal technical team from Evander Mines has been assigned to assess the merits of
progressing the Evander South brownfield project to the level of a feasibility study. The Evander South Project
is a potentially attractive mining opportunity whereby the Kimberley Reef can be exploited at shallow depths,
commencing at 300m below surface.
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40
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER MINES continued
ROLSPRUIT
Background
The Rolspruit Project is an exploration project and the orebody is a down-dip extension of the Kinross
Payshoot, currently being exploited at Evander 8 Shaft. The project is located immediately adjacent to
Evander 8 Shaft as shown on page 37. Exploration on the Rolspruit Project commenced in 1955, and by 1988 a
total of 53 boreholes had been completed by various companies, with accompanying reef deflections.
Geology
The Rolspruit Project is the down-dip extension of the Kinross Payshoot and is in the most distal part of
the Evander Basin. The reef has an average dip of between nine and 22 degrees to the north. The Kimberley
Reef varies in thickness from 10cm to about 60cm. The conglomerate is made up of rounded, quartz clasts
supported by a quartz matrix. Mineralisation is similar to that of Evander 8 Shaft in the No. 2 Decline area.The
nature and amount of pyrite mineralisation are relative good indicators of gold grade values. Buckshot pyrite
and flyspeck carbon are indicators of high gold values.
Mineral Resources
The mineral resource estimation was performed by ExploreMine Consultants Proprietary Limited in
April 2011. An extensive channel sampling database for the adjoining Evander 8 Shaft area and the surface
drilling data for Rolspruit formed the dataset for the resource estimation.
Macro ordinary kriging was applied to indicated resources. Sichel’s-T estimate techniques were used to classify
the inferred mineral resources. The indicated mineral resource estimation was defined on the Evander 8 Shaft
channel sampling dataset and subsequent geozones. The block size was estimated into 60m x 60m blocks.
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
41
Mineral Resources
As at 30 June 2015
Category
Kimberley Reef
Grade
g/t
tonnes
Moz
–
–
–
–
24.40
0.94
25.34
10.93
9.17
10.86
266.7
8.6
275.3
8.57
0.28
8.85
Measured
Indicated
Inferred
Total
Rolspruit a
Contained gold
Tonnes
million
Modifying factors
As at 30 June 2015
Kimberley Reef
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
400,000
5.59
615
110
16.5
85
96.4
Mineral Reserves
Mineral reserves declared are based on the PFS conducted by Turgis dated October 2011 (updated in April 2012).
As at 30 June 2015
Kimberley Reef
Rolspruit a
Grade
g/t
Contained gold
Category
Tonnes
million
Proved
Probable
Total
–
–
–
–
23.36
23.36
8.6
8.6
201
201
6.46
6.46
kg tonnes
Moz
Life of mine plan (grade/tonnage curves)
ROLSPRUIT: GRADE/TONNAGE CURVE
(Measured/indicated resource)
30
24
22
20
18
20
16
14
15
12
10
Grade (g/t)
Tonnes (million)
25
10
8
5
6
0
4
0
2
4
6
8
10
12
14
16
18
20
Cut-off grade (g/t)
Tonnage
Pan Africa MRMR report 2015.proof2.indd 41
Grade
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42
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER MINES continued
POPLAR
Background
The Poplar Project is situated in the north-western limb of the Evander Basin, west of the town of Leandra.
Exploration on the Poplar Project commenced in the mid-1950s and has been the subject of several studies.
A total of 104 boreholes were drilled in the project area, which includes 146 deflections. A total of
46 boreholes were drilled by Harmony from 2007 to 2010.
Geology
The Kimberley Reef occurs at a depth below surface of between 500m in the west and 1,200m in the east.
The reef strikes north-south and dips nine degrees to 24 degrees to the east. The Kimberley Reef comprises
a sequence of fluvial, channel sediments that were deposited in a braided stream environment. Deposition
of the reef was influenced by the footwall lithologies. The Kimberley Reef horizon has a channel width of
approximately 30cm, generally thin reef hosting high gold grades. The reef has north-east-south-west trending
payshoots, which is evident in other parts of the Evander Basin.
A series of seven major, sub-parallel and fairly evenly spaced faults traverse the property. These are all
orientated in a roughly north-northeast–south-southwest direction. Throws of these faults vary between 50m
and 400m.
Mineral Resources
As at 30 June 2015
Kimberley Reef
Poplara
Contained gold
Category
Tonnes
million
Grade
g/t
Measured
Indicated
Inferred
Total
–
–
–
–
13.56
6.49
20.05
7.99
6.97
7.66
108.3
45.3
153.6
3.48
1.46
4.94
tonnes
Moz
Life of mine plan (grade/tonnage curves)
30
18
25
16
14
20
12
15
10
10
Grade (g/t)
Tonnes (million)
POPLAR: GRADE/TONNAGE CURVE
(Measured/indicated resource)
8
5
6
0
4
0
2
4
6
8
10
12
14
16
Cut-off grade (g/t)
Tonnage
Pan Africa MRMR report 2015.proof2.indd 42
Grade
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
43
EVANDER SOUTH
Background
The Evander South Project is in the south-western limb of the Evander Basin. It is located directly west of
Evander 9 Shaft and is south of the Poplar Project. A total of 116 boreholes were drilled in the project area,
and 475 deflections. A total of 43 boreholes were drilled by Harmony during 2008 to 2009.
Geology
The Kimberley Reef occurs at a depth of between 300m in the west and 1,200m in the east below surface.
The reef strikes north-south and dips six degrees to 19 degrees. The Kimberley Reef comprises a sequence
of fluvial channel sediments that were deposited in a braided stream environment. Deposition of the reef was
influenced by the footwall lithologies.The high-grade Kimberley Reef is associated with carbon and is a narrow,
small pebble, clast-supported and well-packed oligomictic conglomerate. Carbon was present in several of the
borehole Kimberley Reef intercepts drilled in the project area.
Mineral Resources
As at 30 June 2015
Kimberley Reef
Evander South
Contained gold
Category
Tonnes
million
Grade
g/t
Measured
Indicated
Inferred
Total
–
–
–
–
10.00
8.78
18.78
9.46
6.64
8.14
94.6
58.5
152.9
3.04
1.88
4.92
tonnes
Moz
Life of mine plan (grade/tonnage curves)
25
24
22
20
18
16
14
12
10
8
6
4
2
0
Tonnes (million)
20
15
10
5
0
0
2
4
6
8
10
12
14
Grade (g/t)
EVANDER SOUTH PROJECT: GRADE/ TONNAGE CURVE
(Measured/indicated resource)
16
Cut-off grade (g/t)
Tonnage
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Grade
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44
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER MINES continued
ELIKHULU
Background
Elikhulu is a surface dump retreatment project that exploits tailings dams which were generated from historical
mining activities at the Kinross, Winkelhaak and Leslie mines. The tailings dams in Evander were drilled and
sampled. A total of 158 holes were drilled on a 200m x 200m grid. Samples were composited at intervals of
1.5m and subjected to metallurgical test-work.
Mineral Resources
As at 30 June 2015
Category
Libra
Measured
Indicated
Inferred
Total
Contained gold
Tonnes
million
Grade
g/t
tonnes
Moz
–
–
–
–
205.28
–
205.28
0.29
–
0.29
59.6
–
59.6
1.92
–
1.92
Mineral Reserves
A feasibility study was undertaken to re-treat only the Kinross Dam resource, ETRP. Modifying factors were
applied to convert the mineral resource to a probable reserve. The milling capacity at the Kinross Plant
contributed to a favourable economic modifying factor, resulting in favourable processing and capital costs, thus
allowing the conversion to be stated.
As at 30 June 2015
ETRP (Kinross dams) Category
ETRP a
Pan Africa MRMR report 2015.proof2.indd 44
Proved
Probable
Total
Contained gold
Tonnes
million
Grade
g/t
tonnes
Moz
–
–
–
–
38.14
38.14
0.32
0.32
12.3
12.3
0.40
0.40
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
45
EVANDER 7 SHAFT NO. 3 DECLINE – 2010 PAYSHOOT
Background
The No. 3 Decline – 2010 Payshoot area is situated north-east of Evander 7 Shaft. It is at a depth of between
1,600m and 2,450m below surface. The No. 3 Decline was extensively mined in the past up to 20 Level
(1,900m BS). The area is accessible by a decline system from 15 Level down to 21 Level. The 2010 Payshoot
runs parallel to the Kinross Payshoot, east of the No. 3 Decline. Surface boreholes in this area indicate possible
payable reef.
Geology
The Kimberley Reef strikes in an east-west direction and dips at 28 degrees to the north. The Foot Wall Sill
Break is an intrusive (sill) that is a reverse fault, which displaces the reef horizon 90m. The Kimberley Reef
at Evander 7 Shaft is a well-developed oligomictic conglomerate up to one metre thick, averaging about
37cm. The Kimberley Reef in this area is very similar to that of 8 Shaft. High gold values in the Kimberley Reef
are mostly located at the base of the unit and are associated with the presence of carbon and some visible
gold on the footwall contact.
Mineral Resources
As at 30 June 2015
Category
Kimberley Reef
Measured
Indicated
Inferred
7 Shaft No. 3 Decline
and 2010 Payshoot
Total
Contained gold
Tonnes
million
Grade
g/t
tonnes
Moz
0.52
11.05
5.7
0.18
0.34
5.41
10.03
10.85
3.4
58.7
0.11
1.89
6.27
10.82
67.8
2.18
Life of mine plan (grade/tonnage curves)
EVANDER 7: GRADE/TONNAGE CURVE
(Measured/indicated resource)
8
22
20
18
16
14
12
4
10
8
Grade (g/t)
Tonnes (million)
6
6
2
4
2
0
0
0
2
4
6
8
10
12
14
16
18
Cut-off grade (g/t)
Tonnage
Pan Africa MRMR report 2015.proof2.indd 45
Grade
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46
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER MINES continued
RECONCILIATION OF MINERAL RESOURCES AND MINERAL
RESERVES
Gold
kg
Mineral resource reconciliation: 2014 to 2015
Gold
koz
Balance as at June 2014
Mined during 2014/15
Addition
Balance as at end June 2015
925,106
(3,409)
29,743
(110)
866,028
27,843
Variance
(55,669)
(1,790)
Gold
kg
Mineral reserve reconciliation: 2014 to 2015
Balance as at June 2014
Mined during 2014/15
Addition
Balance as at June 2015
Variance
Gold
koz
257,019
(2,186)
8,262
(70)
257,697
8,285
2,863
93
During the 2015 financial year, the following significant changes to resources occurred:
• Evander 8 Shaft had a reduction in ounces due to the increase in cut-off grade, a decrease of 1,147,161oz
• Poplar had a reduction in ounces due to the increase in cut-off grade, a decrease of 414,649oz.
During the 2015 financial year, the following significant changes to reserves occurred:
• Evander 8 Shaft reserve increased by 48,000oz. That was due to the additional reserves from the Lubbe
Payshoot.
As a result of the changed detailed above, Evander’s mineral resource inventory posted the following changes
for 2015:
• Total Evander mineral reserve increased by 23,000oz contained gold
• Total Evander mineral resource decreased by 1,900,000oz contained gold
• Measured mineral resource decreased by 77,000oz contained gold
• Indicated mineral resource decreased by 516,000oz contained gold
• Inferred mineral resource decreased by 1,307,000oz contained gold.
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
47
MINERAL RESOURCES TABLE: EVANDER MINES
Mineral Resources 30 June 2015
Operations
Classification
tonnes
g/t
kg
oz
Evander 8 Shaft
Measured
Indicated
Inferred
Total
1,904,354
2,861,334
7,501,004
12,266,692
17.04
15.63
10.58
12. 76
32,450
44,712
79,397
156,559
1,043,000
1,438,000
2,553,000
5,034,000
Evander surface sources
Measured
Indicated
Inferred
Total
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Evander 7 Shaft (vamping)
Measured
Indicated
Inferred
Total
57,765
–
–
57,765
2.75
–
–
2.75
159
–
–
159
5,000
–
_
5,000
Evander 7 Shaft No. 3 Decline
Measured
Indicated
Inferred
Total
518,669
340,912
5,405,496
6,265,077
11.05
10.03
10.85
10.82
5,733
3,419
58,658
67,810
184,000
110,000
1,886,000
2,180,000
Elikhulu (ETRP)
Measured
Indicated
Inferred
Total
–
205,280,945
–
205,280,945
–
0.29
–
0.29
–
59,559
–
59,559
–
1,915,000
–
1,915,000
Rolspruit
Measured
Indicated
Inferred
Total
–
24,399,050
937,985
25,337,035
–
10.93
9.17
10.86
–
266,672
8,599
275,271
–
8,574,000
276,000
8,850,000
Poplar
Measured
Indicated
Inferred
Total
–
13,560,874
6,494,122
20,054,996
–
7.99
6.97
7.66
–
108,310
45,292
153,602
–
3,482,000
1,456,000
4,938,000
Evander South
Measured
Indicated
Inferred
Total
–
9,997,892
8,781,847
18,779,739
–
9.46
6.64
8.14
–
94,617
58,320
152,937
–
3,042,000
1,875,000
4,917,000
Total Evander
Measured
Indicated
Inferred
Total
Pan Africa MRMR report 2015.proof2.indd 47
2,480,788
15.46
38,342
1,232,000
257,181,497
2.25
577,420
18,565,000
29,120,454
8.59
250,266
8,046,000
288,782,739
3.00
866,028
27,843,000
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48
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER MINES continued
MINERAL RESERVES TABLE: EVANDER MINES
Mineral resource 30 June 2015
Operations
Classification
tonnes
g/t
kg
oz
Evander 8 Shaft
Proved
Probable
Total
2,046,842
3,366,549
5,413,391
7.90
8.34
8.17
16,175
28,076
44,251
520,000
903,000
1,423,000
Evander surface sources
Proved
Probable
Total
–
–
–
–
Evander 7 Shaft (vamping)
Proved
Probable
Total
30,800
–
30,800
3.76
–
3.76
116
–
116
4,000
–
4,000
ETRP
Proved
Probable
Total
–
38,142,803
38,142,803
–
0.32
0.32
–
12,324
12,324
–
396,000,
396,000
Rolspruit
Proved
Probable
Total
–
23,362,565
23,362,595
–
8.60
8.60
–
201,006
201,006
–
6,462,000
6,462,000
Total
Proved
Probable
Total
2,077,642
64,871,917
66,949,558
7.84
3.72
3.85
16,291
241,406
257,697
524,000
7,761,000
8,285,000
As at 30 June 2015, Evander reported a mineral reserve of 8,285,000oz and mineral resource of 27,843,000oz contained gold. The measured and
indicated mineral resources are inclusive of those resources modified to produce the mineral reserves. Reserves are reported as mill-delivered
tonnes at the headgrade, having duly considered all modifying factors.
The competent person for Evander Mines, Mr Barry Naicker, the group mineral resource manager, signs off the mineral resources for
Evander. He is a member of the South African Council for Scientific Professions (400234/10). Mr Naicker has a Master’s degree in mineral
resource management from Witwatersrand University and a Bachelor of Science (Honours) in economic geology. Mr Naicker has 14 years of
experience in economic geology and mineral resource management. Mr Naicker is based at First Floor,The Firs, cnr Cradock Avenue and Biermann
Avenue, Rosebank, 2196, Gauteng.
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
49
TOTAL MINERAL RESOURCES AND MINERAL RESERVES FOR EVANDER MINES
Total Mineral Resources
As at 30 June 2015
Kimberley Reef
Evander Mines
Contained gold
Category
Tonnes
million
Grade
g/t
tonnes
Moz
Measured
Indicated
Inferred
Total
2.48
257.18
29.12
288.78
15.46
2.25
8.59
3.00
38.3
577.4
250.3
866.0
1.23
18.57
8.05
27.84
Category
Tonnes
million
Grade
g/t
tonnes
Moz
Proved
Probable
Total
2.08
64.9
67.0
7.84
3.72
3.85
16.3
241.4
257.7
0.53
7.76
8.29
Total Mineral Reserves
As at 30 June 2015
Evander Mines a
Pan Africa MRMR report 2015.proof2.indd 49
Contained gold
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50
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
PHOENIX PLATINUM
HIGHLIGHTS
•
44% increase in PGE ounces sold
•
Increase in PGE recoveries from 29% to 44%
•
Capital spend on ETRP was below budget
CHALLENGES
• Declining commodity prices
• International Ferro Metals business rescue proceedings
LOOKING AHEAD
• Optimising mineral reserves from Elandskraal and Kroondal (122.534oz)
• Continuing to contain costs
Phoenix Platinum recovers PGEs from
CTRP located on IFL’s Lesedi Mine. The
Buffelsfontein, Elandskraal and Kroondal
mineral resources originate from the
mining of chromitite seams from the
Bushveld Igneous Complex.
The Bushveld Igneous Complex is host to the world’s largest deposits of PGEs. The
operation is expected to produce PGEs over a life of mine of 28 years. It has a total
process capacity of 240kt per annum.
The PGEs are extracted in the flotation plant and the concentrate is delivered to
Lonmin’s Mooinooi Smelter for toll extraction.
The CTRP was designed to treat sulphide material from the Lesedi Mine, which is
supplied to Phoenix Platinum with sulphide-rich material, as a current arising.
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Mineral Resources and Mineral Reserves Report 2015
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
PHOENIX PLATINUM
LOCATION
Located in the North-West
Province of South Africa.
Situated in the town of
Mooinooi, on the lease area
of the IFM Lesedi Mine.
Rustenburg
Kroondal
Buffelsfontein
Bapong
N
4
Mooinooi
Elandskraal
0
Scale
10km
Magaliesberg Protected
Natural Environment
LEGEND
Farm boundary
National road
Regional road
Railway
HISTORY OF PHOENIX
Pan African Resources acquired 100% of Phoenix Platinum from Metorex Limited (Metorex) on 21 May 2009.
Phoenix Platinum recovers PGM 6E from old tailings and current arisings through mineral rights agreements
from the IFM Lesedi Mine dams and current arisings, the Elandskraal dumps and pits, and the Kroondal dump.
These tailings are covered through various agreements with Phoenix Platinum to be the feed source for a
240ktpa chrome tailings retreatment plant (CTRP).
Buffelsfontein (IFM Lesedi Mine dams and current arisings)
IFM operates a chromite ore beneficiation plant that feeds a number of chromite furnaces on its property
to produce ferrochrome. The chromite ore beneficiation plant rejects gangue minerals in the form of tailings
(current arisings) to the tailings dams.The bulk mass of the tailings is made up of pyroxenites, some unrecovered
chromite and PGM 6E minerals associated with pyroxenites. Historically, IFM mined mainly the MG1 seam, with
lesser amounts of MG2 included. The PGM 4Es mineral rights in the IFM tailings dams, and current arisings
situated on the farm Buffelsfontein, were acquired in 2008.
The IFM tailings dams were constructed in 2006 and, to date, have been used for the deposition of tailings
material from the IFM chrome beneficiation plant.
Elandskraal
The tailings in the pits was created by historic mining of the MG1 and MG2 orebodies by Samancor and Hernic
mining operations. In 2003, Minco purchased the operations from Hernic and started chromite reclamation
from the dumps. Phoenix Platinum has an agreement with Minco to process the Elandskraal dumps and pits.
Kroondal
Metorex acquired the Kroondal resource from the joint venture between GB Mining and Exploration
SA Proprietary Limited and Aquarius Platinum SA Proprietary Limited in 2008. This dump was generated by
tailings from the mining of the LG6 chromitite layer of the Bushveld Igneous Complex at the Xstrata Kroondal
operations.
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53
Northern
Limb
Polokwane
(Pietersburg)
Mokopane
(Potgietersrus)
Western
Limb
Eastern
Limb
t
Pla ult)
glo delb
n
A an
Northam
m
Platinum
(A
Nylstroom
Groblersdal
Rustenburg
Dullstroom
Pretoria
Middelburg
RUSTENBURG LAYERED SUITE
AngloPlat
(Union)
PR
Northam
MERENSKY REEF
Upper
Group
UG2
UG1
UPPER ZONE
PYROXENITE MARKER
MG3
Middle
Group
MAIN ZONE
LEGEND
Chromitite
Anorthosite
Norite
Pyroxenite
MG4
MG2
MG1
Saulspoort
UPPER CRITICAL ZONE
Mogwase
LOWER CRITICAL ZONE
PILANESBERG ALKALINE
COMPLEX
LG7
Lower
Group
LG6 & LG6A
Atlanta
LOWER ZONE
LG5
MARGINAL ZONE
Heystekrand
Sun
City
Vaalkop
dam
Ledig
Beestekraal
AngloPlat
(BafokengRasimone))
Impala
Lease
R5
LEGEND
Lebowa Granite Suite
Upper Zone
Main Zone
Merensky Reef
UG2 Reef
Upper Critical Zone
N
Lower Critical Zone
4
Lower Zone
Marginal Zone
Transvaal Supergroup
Pilanesberg Alkaline Complex
Fault
Town
Farm boundaries
Road
Railway
River
Tailings and current arisings sources
65
B u s h v e l d C om p l e x
R u s te n b u rg L a y e re d
S u i te
Barplats
AngloPlat
(Rustenburg)
Rustenburg
Brits
Aquarius
AngloPlat
(Kroondal)
Lonmin
(Marikana)
AngloPlat
(Pandora)
Barplats
(Crocodile River)
Bapong
N
4
Kroondal dump
Aquarius
AngloPlat
(Marikana)
Mooinooi
Elandskraal dumps and pits
Buffelsfontein dams
and current arisings
0
15km
Geology of Western Limb – Bushveld Igneous Complex
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
PHOENIX PLATINUM continued
REGIONAL GEOLOGY
GEOLOGY
The Elandskraal and
Buffelsfontein mineral
resources are situated
5km east of Mooinooi,
north of the N4 highway
that connects Pretoria and
Rustenburg in North West.
The sites are accessed via the
old Rustenburg/Pretoria road,
which runs parallel to the
N4 highway. The Kroondal
mineral resource is 7km east
of Rustenburg on the old
Rustenburg/Pretoria Road.
The Buffelsfontein, Elandskraal and Kroondal mineral resources originate from the mining of the Bushveld
Igneous Complex. The chromitite layers in the Western Limb of the Bushveld Igneous Complex are confined
to the critical zone of the layered complex and are grouped from the bottom upwards, into lower, middle and
upper groups. The middle group consists of four chromitite seams of which the sixth seam – numbered from
bottom (MG1) to top (MG4) – is being mined.The mining that took place at Elandskraal and is still taking place
at Buffelsfontein (IFM Lesedi Mine) are the MG1 and MG2 seams. The MG1 seam sits in the Lower Critical
Zone of the Bushveld Igneous Complex, whereas MG2 is in the Upper Critical Zone of the Bushveld Igneous
Complex. Both MG1 and MG2 dip at approximately 12 degrees to the north.
Deposit types
Mineralisation at Phoenix is classified as tailings dumps. The tailings from the various chromite mines are
deposited onto a dump, which is then re-treated by Phoenix Platinum to recover the PGMs 6E.
MINERAL RESOURCE ESTIMATION METHODOLOGY
Buffelsfontein
Quantities
Dumps: The Buffelsfontein dumps were surveyed to obtain the in situ volumes. The tailings dams occupied
321,067.5m3. A bulk density of 1.54t/m3 was determined in a laboratory from dump samples, and this was used
in the tonnage calculation for declaration of the resource. Tailings from the CTRP were added as an inferred
resource; this was calculated using plant flow meters, densitometers and daily assays.
Current arisings: Current arisings tonnages were determined using a 15% extraction of the mineral reserves of
Lesedi Mine.The inferred resource was determined using a 15% extraction of the inferred resources for Lesedi Mine.
Grade
Resource determination was done by drilling the resource dams on a grid pattern of 8m x 8m where possible.
A composite sample of the drill hole was created and then analysed for the PGM 4E content at a minerals
analysis laboratory. An inverse distance estimation technique was used to derive the mineral resource grade.
Elandskraal
Quantities
Resource volumes were determined by drilling the resource dumps, dams and pits on a grid pattern where
possible. The grids at Elandskraal were less straight than at Buffelsfontein, due to the roughness of the terrain
that made up the resource. Information from this drilling process was modelled three-dimensionally by
mineral resource specialists to obtain accurate resource tonnage determinations, which would form part of a
SAMREC-compliant resource.
Grade
The information from the sampling process was analysed and the average grade for the dam and pits was
determined, using an inverse distance estimation technique.
Kroondal
As at June 2013, the Kroondal resource was split into three areas:
• Farm Kroondal 304JQ dump
• Wonderkop non-processed dumps
• Wonderkop processed dump.
Quantities
A volumetric survey was conducted on farm Kroondal 304JQ and on the Wonderkop non-processed dumps.
Due to vegetation on Wonderkop processed dump, a volumetric survey in 2013 was not undertaken, and the
resource was thus reclassified as an indicated resource. A bulk density of 2.04 t/m was used.
Grade
The area consists of the LG6 tailings dump at the dormant Kroondal Mine. A detailed competent person’s
report was completed in 2003 by Craton Resources CC, and the grade determined was 2g/t PGE 6E.
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
55
BUFFELSFONTEIN
Location
Buffelsfontein dumps and current arisings are located on the farm Buffelsfontein 465JQ, portion 11 constituted by portions 20, 21, 22, 23 and 24,
and portion 12. The satellite image below depicts the dumps and the decline shaft used to extract the current arisings.
• Exploration boreholes
Landsat image of Buffelsfontein
Mineral Resources
As at 30 June 2015
Category
Buffelsfontein tailings dams
Tonnes
kt
Grade
g/t
118
Measured
Indicated
Inferred
Indicated
Inferred
Total
785
3,054
362
4,319
3.66
–
2.60
3.66
3.66
3.47
Category
Tonnes
kt
Grade
g/t
118
Probable
Buffelsfontein current arisings
Proved
Buffelsfontein
Probable
Total
Buffelsfontein current arisings
Buffelsfontein a
Contained PGEs
kg
oz
432
–
2,040
11,178
1,326
14,976
13,903
–
65,575
359,369
42,627
481,474
Mineral Reserves
As at 30 June 2015
Buffelsfontein tailings dams
Proved
Contained PGEs
kg
oz
3.66
432
13,903
–
–
–
–
–
–
–
–
3,054
3,172
3.66
3.66
11,178
11,610
359,369
373,272
Mineral Resources and Reserves reconciliation
The mineral reserves decreased from 395,211oz PGEs to 373,272oz PGMs. This decrease can be attributed to the re-mining of the Buffelsfontein
tailings dam.
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56
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
PHOENIX PLATINUM continued
ELANDSKRAAL
Location
Elandskraal dumps, dams and pits are located on the farm Buffelsfontein 465JQ, portion 155, as shown below.
• Exploration boreholes
Landsat image of Elandskraal
Mineral Resources
As at 30 June 2015
Elandskraal a
Category
Tonnes
kt
Grade
g/t
Measured
1,149
Indicated
145
Inferred
Total
Contained PGEs
kg
oz
2.45
2,815
90,506
2.04
296
9,510
42
2.00
84
2,701
1,336
2.39
3,193
102,717
Tonnes
kt
Grade
g/t
1,149
145
1,294
Mineral Reserves
As at 30 June 2015
Category
Proved
Probable
Elandskraal
Total
Contained PGEs
kg
oz
2.45
2,815
90,506
2.04
296
9,510
2.40
3,111
100,016
Mineral Resources reconciliation
No material movements occurred in the reporting year.
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
57
KROONDAL
Location
The Kroondal resource is located in two areas – the farm Kroondal 304GQ and the Xstrata
Wonderkop plant in Marikana.
33,000
33,100
33,200
44,900
32,900
es
n
o
cti
Se
lin
G
L
45,000
J
N
Q
45,100
S
>3g/t
E
1 - 3g/t
A
<1g/t
M
P
0
R
100m
B
Section E - G
1
2
70
1,160m AMSL
Section A - L
6
5
4
3
70
1,160m AMSL
Section M - J
7
8
9
10
11
70
1,160m AMSL
Section P - N
16
15
14
13
12
70
1,160m AMSL
Section R - Q
17
18
19
20
21
70
1,160m AMSL
Section B - S
27
26
25
24
23
22
70
1,160m AMSL
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
PHOENIX PLATINUM continued
Mineral Resources
As at 30 June 2015
Category
Tonnes
kt
Grade
g/t
Measured
316
Indicated
50
Inferred
Kroondal a
Total
Contained PGEs
kg
oz
2.00
632
20,319
2.00
100
3,215
–
–
–
–
366
2.00
732
23,534
Tonnes
kt
Grade
g/t
316
Mineral Reserves
As at 30 June 2015
Category
Proved
Probable
Kroondal
Total
Contained PGEs
kg
oz
2.00
632
20,319
50
2.00
100
3,215
366
4.00
732
23,534
TOTAL MINERAL RESOURCE AND MINERAL RESERVE – PHOENIX PLATINUM
Total Mineral Resources – PGEs
As at 30 June 2015
Contained PGEs
Mineral Resources
Pan African Resources
Category
Tonnes
million
Grade
g/t
kg
Moz
Measured
1.6
2.46
3,879
0.1
Indicated
3.2
3.66
11,574
0.4
Inferred
1.2
2.90
3,446
0.1
Total
6.0
3.14
18,902
0.6
Tonnes
million
Grade
g/t
Proved
1.6
Probable
3.2
Total
4.8
Total Mineral Reserves – PGEs
As at 30 June 2015
Contained PGEs
Category
Mineral Reserves
Pan African Resources
kg
Moz
2.46
3,879
0.1
3.56
11,574
0.4
3.20
15,453
0.5
As at 30 June 2015, Phoenix Platinum reported mineral reserves of 0,5Moz PGE and mineral resources of 0,6Moz PGEs. The measured and
indicated mineral resources are inclusive of those resources modified to produce the mineral reserves.
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59
GLOSSARY
Adit
A mining tunnel that is mined from the side of a mountain or mining pit
Capital expenditure (capex)
Expenditure on tangible assets – includes ongoing and project capital. In particular, capex
includes spending on ongoing development, abnormal expenditure, shaft projects and major
projects, and covers both sustaining and growing operations
Cash cost
Cash costs include direct operating costs for all mining and processing sites, but are exclusive of
royalties, production taxes, depreciation and rehabilitation, as well as corporate administration,
capital and exploration costs
Chrome tailings
Discards from a chrome washing plant be it historical (tailings dams) or new (current arisings)
Chrome Tailings Retreatment Programme
This is a flotation plant constructed to recover PGMs from chrome tailings
Contained gold
The total gold content (tonnes multiplied by grade) of the material being described
Current arisings
The live tailings discarded by the chrome operators’ washing plant and fed directly to a CTRP.
Cut-off grade
Minimum grade at which a unit of ore will be mined to achieve the desired economic outcome
Decline
Underground evacuation at an inclined angle – normally a shaft
Depletion
Decrease in quantity of ore in a deposit or property due to extraction or production
Development
Process of accessing an orebody through shafts or tunnelling in underground mining
Development capital
Capital expenditure incurred in development of the workings areas and creation of additional
mineral resources to support the mining operations
Gold produced
Refined gold derived from the mining process, measured in ounces or kilograms in saleable
form
Grade
Quantity of gold contained in a unit weight of gold-bearing material, generally expressed in
ounces per short ton of ore (oz/t), or grams per metric tonne (g/t)
Greenstone Belt
Geological zone of variably metamorphosed matic to ultramatic volcanic sequences with
associated sedimentary rocks that occur within Archaean and Proterozoic cratons between
granite and gneiss
IFL
International Ferro Metals (SA) Proprietary Limited, Phoenix Platinum concluded a formal
CTRP agreement with IFL and operates from its Lesedi Mine
In situ
Original or unbroken condition of the reef before mining
Indicated resource
A mineral resource reported as an in situ mineralisation estimate – intermediate level of
geoscientific knowledge and confidence
Inferred resource
A mineral resource reported as an in situ mineralisation estimate – low level of geoscientific
knowledge and confidence
JORC
Australian code for reporting exploration results, mineral resources and mineral reserves
JSE
JSE Limited
Measured resource
A mineral resource reported as an in situ mineralisation estimate – high level of geoscientific
knowledge and confidence
Metallurgical recovery factor
A measure of the efficiency in extracting gold from the ore deposit
Milling
A process of reducing broken ore to a size at which concentrating can be undertaken
Mine call factor
The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered
mineral product after processing with the amount estimated in the ore based on sampling
Mining Charter
Charter to facilitate the sustainable transformation and development of the South African
mining industry
Outside section
Sections that are not part of the current operating mines, but are part of the contained mineral
rights area
Pay limit
The grade of a unit of ore at which revenue from the recovered mineral content of the ore
is equal to the total cash cost, including ore reserve development and stay-in-business capital
Probable reserve
A mineral reserve reported as a mineable production estimate – lower level of geoscientific
knowledge and confidence
Proved reserve
A mineral reserve reported as a mineable production estimate – higher level of geoscientific
knowledge and confidence
Recovered grade
The recovered mineral content per unit of ore treated
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Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
GLOSSARY continued
Reef
A gold-bearing sedimentary horizon, normally a conglomerate band that may contain economic
levels of gold
Reserve base
A mineral reserve reported as a mineable production estimate – the probable and proved
reserve
SAMREC
South African code for reporting exploration results mineral resources and mineral reserves
Tailings
Finely ground rock of low residual value from which valuable minerals have been extracted
Discarded tailings stored in dam facilities.
Ton
Imperial = 2,000 pounds (1,016kg). Referred to as a short ton.
Tonne (t)
Metric = 1,000 kilograms
Underground mining
Mining activities occurring below the earth’s surface
Vamping tons
Reef tons emanating from cleaning out of old underground working places
ABBREVIATIONS
Barberton Mines
Barberton Mines Proprietary Limited
BFS
Bankable feasibility study
BIOX®
Biological oxidation
CIL
Carbon-in-leach
CTRP
Chromite Tailings Retreatment Plant
DMR
Department of Mineral Resources: South African Governmental department (previously DME)
EE
Employment equity
Evander Mines
Evander Gold Mines Proprietary Limited
LOM
Life of mine
MPRDA
The South African Mineral and Petroleum Resources Development Act, 28 of 2002
MRM
Mineral resource management
PAR, Pan African or the company
Pan African Resources
PGE’s
Platinum group elements – platinum, palladium, rhodium and gold
PGM
Platinum group minerals/metals
Phoenix Platinum
Phoenix Platinum Mining Proprietary Limited – The Chromite Tailings Retreatment Plant in the
North-West province, South Africa
RC
Reverse circulation: drilling method
SAMREC
The South African Resource Committee
SAMREC Code
The South African code for the reporting of exploration results, mineral resources and mineral
reserves
Shanduka
Shanduka Gold Proprietary Limited, a 100% subsidiary of Shanduka Resources Proprietary
Limited
Pan Africa MRMR report 2015.proof2.indd 60
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COMPANY INFORMATION
CORPORATE OFFICE
JSE SPONSOR
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office: + 27 (0) 11 243 2900
Facsimile: + 27 (0) 11 880 1240
Sholto Simpson
One Capital
Office: + 27 (0) 11 550 5009
REGISTERED OFFICE
Suite 31
Second Floor
107 Cheapside
London, EC2V 6DN
United Kingdom
Office: + 44 (0) 20 7796 8644
Facsimile: + 44 (0) 20 7796 8645
NOMINATED ADVISER
AND JOINT BROKER
John Prior/Paul Gillam/James Black
Numis Securities Limited
Office: +44 (0) 20 7260 1000
JOINT BROKER
Matthew Armitt/Ross Allister
Peel Hunt LLP
Office: +44 (0) 20 7418 8900
DIRECTORS
PUBLIC AND INVESTOR
RELATIONS SA
Cobus Loots
Pan African Resources
Chief executive officer
Office: + 27 (0) 11 243 2900
Julian Gwillim
Aprio Strategic Communications
Office: +27 (0)11 880 0037
Deon Louw
Pan African Resources
Financial director
Office: + 27 (0) 11 243 2900
PUBLIC AND INVESTOR
RELATIONS UK
Daniel Thöle
Bell Pottinger PR
Office: + 44 (0) 20 3772 2500
COMPANY SECRETARY
Phil Dexter
St James’s Corporate Services Limited
Office: + 44 (0) 20 7796 8644
Pan Africa MRMR report 2015.proof2.indd 61
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2015/10/28 4:07 PM
www.panafricanresources.com
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