Name of the Project
Mogale Gold tailings storage facilities (TSFs).

Location
Near Krugersdorp, to the west of Johannesburg, in Gauteng, South Africa.

Project Owner/s
Pan African Resources.

Project Description
The Mogale Gold TSFs comprise various individual dams containing a probable mineral reserve of 123.6-million tonnes of remineable material at a head grade of 0.29 g/t for an estimated content of 1.14-million ounces of gold.

The Mogale Gold project has the potential to increase Pan African’s gold production profile over the coming years.

Remining the Mogale Gold TSFs is expected to add about 50 000 oz/y of production over its 13-year life-of-mine (LoM). The project entails low unit-cost hydromining, with low project execution risk, at 800 000 t a month using a carbon-in-leach plant, similar to Pan African’s Elikhulu operation currently processing 1.2-million tonnes a month, with up to 900 000 t a month achievable without negatively affecting performance.

The addition of Mintails’ Soweto Cluster resource has the potential to extend the LoM from 13 years to 21 years and further increase yearly gold production.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 9.5% real discount rate, of R1.01-billion and a real ungeared internal rate of return of 20.1%. Construction capital payback is estimated within 3.5 years after commissioning.

Capital Expenditure
Construction capital expenditure is estimated at R2.46-billion.

Planned Start/End Date
Construction started in July 2023. The commissioning of the project is expected in the latter half of 2025.

Latest Developments
Funding has closed for the project. The full upfront capital of R2.5-billion for development has been secured, with conditions precedent to its R1.3-billion senior debt facility for funding.

With Nedbank, acting through its Nedbank Corporate and Investment Banking division, as co-financier, the senior debt facility has been underwritten by Rand Merchant Bank, a division of FirstRand Bank.

In addition, the Department of Mineral Resources and Energy has granted an environmental authorisation for the project in terms of Regulation 24(1)(a) of the Environmental Impact Assessment Regulations, 2014.

Key Contracts, Suppliers and Consultants
DRA Projects (definitive feasibility study); and SGS Bateman (EPCM).

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