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 through 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 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 will start in April 2023. Production is targeted within 18 to 24 months from the start of construction.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
DRA Projects (definitive feasibility study).

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