- Click here to download a copy of the Egoli Project Presentation. (3.03 MB)
An independent review has been completed on the feasibility study for the Egoli project at gold miner Pan African’s Evander mine, in Mpumalanga.
First gold is now expected to be produced about 20 months after construction starts, with ramp-up to steady state production to be achieved 16 months after that.
The low-cost brownfield project, which will capitalise on the Evander mine’s existing established infrastructure during its development and exploitation, has an initial life-of-mine (LoM) of nine years, with yearly gold production estimated at an average of 72 000 kg at an average head grade of 6.61 g/t.
Average LoM gold production is estimated at 17 771 kg, or about 570 000 oz.
Additional geological and operational upside exists when the inferred resources are accessed as underground development proceeds, which will potentially increase the LoM to 14 years.
In a report published on July 30, Pan African says the study “demonstrates a compelling organic growth project” with peak funding set at just over R1-billion with a capital payback period of 3.8 years from project inception.
All-in sustaining costs range at R399 600/kg, or $777/oz.
Detailed project scheduling and planning is in progress and is expected to be completed in the first quarter of 2021, while funding is expected to be finalised in the second quarter of 2021.
Inception of the Egoli project is scheduled to start in the second quarter of the 2021 financial year, with the dewatering of the decline followed by re-equipping, standard footwall development and further deepening of the decline and on-reef development.
The project also has strong environmental social and governance credentials, as it is already fully licensed and empowered, the closure cost rehabilitation liability is fully funded and the company intends to utilise the existing tailings storage facility at Evander for the project, resulting in there being no additional environmental footprint.
The Evander solar plant, which will be completed in the next year, is expected to also contribute to cost savings and reduced emissions at Evander’s operations.