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Mogale Tailings Retreatment project, South Africa – update

Image of the Mogale tailings

Photo by ©Pan African Resources

26th January 2024

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Mogale Tailings Retreatment (MTR) project.

Location
Near Krugersdorp, to the west of Johannesburg, in Gauteng, South Africa.

Project Owner/s
Pan African Resources.

Project Description
The project comprises 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.

It has the potential to increase Pan African’s gold production profile over the coming years.

Remining the Mogale Gold tailings storage facilities 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 using a carbon-in-leach (CIL) plant, similar to Pan African’s Elikhulu operation that processes 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 the LoM from 13 years to 21 years and further increase yearly gold production.

Potential Job Creation
The estimated 500 employees that are needed for the construction of the project have largely been sourced locally.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 9.5% real discount rate, of $65-million 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 (capex) is estimated at $161.3-million.

Planned Start/End Date
Construction started in July 2023. Commissioning of the project is expected in the latter half of 2024, while steady-state production is expected by December 2024.

Latest Developments
In an operational update for the half-year ended December 31, 2023, Pan African Resources reports that significant progress has been made with the construction of the MTR project’s processing plant, with commissioning being on track for the latter half of the 2024.

Construction is progressing on time, and capital expenditure is in line with the project’s budget. Laying the foundations for the nine CIL tanks and the tower crane’s construction have been completed.

Key Contracts, Suppliers and Consultants
DRA Projects (definitive feasibility study); and SGS Bateman (EPCM).

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

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Edited by Creamer Media Reporter

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