Egoli project, South Africa – update

Image of gold dust and nugget

15th September 2023

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor


Font size: - +

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. The mine will capitalise on Evander Mines’ existing infrastructure, reducing the upfront capital investment.

Egoli has a life-of-mine (LoM) 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
Pan African Resources reported at its investor roadshow in June 2023 that the dewatering of 3 Decline infrastructure to 19 Level at Egoli would be achieved in the fourth quarter of 2023, with the pumping of five-million litres a day of water ongoing at lower levels.

Following dewatering, mining will start in remnant areas on 15 Level, 7 Shaft

(above Egoli) during the second quarter of the 2024 financial year.

The feasibility study is expected to be updated in the second half of the 2024 financial year.

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


Latest Multimedia


SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

Sandvik Mining Automation image
Sandvik Mining and Rock Solutions

The AutoMine® product group offers autonomous and remotely operated mobile equipment. It allows operators to simultaneously control and monitor...


Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.17 0.22s - 92pq - 2rq
Subscribe Now