Egoli project, South Africa – update

Image of gold nugget in a somebody's hand

26th January 2024

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor


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Name of the Project
Egoli project.

Mpumalanga, South Africa.

Project Owner/s
Pan African Resources.

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

Life-of-mine (LoM) is estimated at nine years, based on the measured and indicated mineral resources. Mineral reserves delineation drilling will then start to accurately define the Egoli payshoot for early mining.

Mining of the Evander 24, 25 and 26 levels is required before the Egoli project can be developed and, following the 8 Shaft pillar extraction that is under way, is expected to result in improved cash returns and will require a materially reduced capital outlay.

The project’s phased development approach and production profile will coincide with the depletion of the 24 Level mineral reserves.

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

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

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

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

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

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

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

Latest Developments
In an operational update for the half-year ended December 31, 2023, Pan African Resources reports that progress at Evander’s 24 to 26 level underground expansion remains on track.

Construction of Phase 2 of the refrigeration plant on 24 Level at Evander Mines’ 8 Shaft is at an advanced stage, with completion expected during the 2024 financial year, as operations at the 25 Level start.

Development to access the 25 and 26 levels mining areas has started. The equipping of the existing 17 Level underground ventilation shaft, with a hoisting capacity of up to 40 000 t a month, is expected to be completed during the 2024 financial year, improving efficiencies and eliminating the existing cumbersome conveyor system.

Further, dewatering of Evander’s 7 Shaft Egoli project is ongoing. Once dewatered to below 20 Level, reserve delineation drilling will start to further define the ore payshoot and its grade variability.

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

Contact Details for Project Information
Pan African Resources, Juanita Maijsen, tel + 27 11 243 2900 or email

Edited by Creamer Media Reporter


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