Name and Location
Evander tailings treatment project (ETRP), Mpumalanga, South Africa.

Client
Pan African Resources.

Project Description
The ETRP will increase Evander’s gold production by up to 10 000 oz/y at a low cash cost.

The ETRP comprises a total mineral resource of 597 000 oz, contained in dams 1, 2 and 3 of the Kinross tailings storage facility (TSF), and a mineral reserve of 369 000 oz, contained in dams 1 and 2 of the Kinross TSF.

The original Kinross metallurgical plant was designed to treat 240 000 t/m of run-of-mine and was subsequently rationalised to its current capacity to process 60 000 t/m from surface and underground sources.

The ETRP project will refurbish the carbon-in-leach plant to treat an estimated 180 000 t/m of tailings using electro-winning and smelting to produce a saleable product.

A cost benefit of the ETRP is that no additional milling of feed material will be required.

The expected electric power requirement of the ETRP (2 800 kWh) will be sourced as part of the current Kinross plant power reticulation.

The ETRP will retreat 2.16-million tonnes a year of gold tailings over a 14-year life.

Value
The total capital expenditure for the ETRP is estimated at R200-million, of which about R110-million will be spent on plant design, refurbishment and construction, and the remainder on remining, the TSF and other infrastructure.

Duration
Civil work of the ETRP is planned to start in April 2014, with remining and plant commissioning starting in January 2015.

Build-up to full production is expected by June 2015.

Latest Developments
Pan African expects first gold production to start at its ETRP this month.

The company, which has warned that its earnings per share (EPS) and headline earnings per share (HEPS) for the six months ended December 31, 2014, are likely to be significantly lower than in the prior comparable period, says the project is on schedule and within budget. The company has indicated that its EPS and HEPS for the six months ended December 31, 2014, in rand terms, will likely be between 3.02c and 6.04c, representing a drop of between 60% and 80% on the 15.11c reported for the six months ended December 31, 2013.

Key Contracts and Suppliers
Basil Read-Matomo (ETRP feasibility report and plant capital expenditure forecast, as well as the design, procurement and construction the ETRP) and Fraser Alexander (TSF feasibility report and associated capital forecast, as well as construction of the TSF and operation of the remining operation).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Pan African Resources, Elizma Coetzee, tel + 27 11 243 2900, fax + 27 11 880 1240 or email ecoetzee@paf.co.za.
Basil Read-Matomo, tel +27 11 418 6300 or fax +27 11 418 6333.
Fraser Alexander, tel +27 11 929 3600, fax +27 11 397 4607 or email fainfo@fraseralexander.co.za.