Name of the Project
Mogale Gold project.

Location
Gauteng, South Africa.

Project Owner/s
Pan African Resources entered into conditional sale-of-shares agreements to acquire the total share capital, associated shareholder loans and other claims of Mogale Gold and Mintails SA Soweto Cluster, collectively Mintails, in November 2020.

Project Description
A concept study conducted on the Mogale Gold assets in 2020 revealed no fatal flaws and an independent prefeasibility study (PFS) was commissioned.

The Soweto Cluster tailings storage facilities (TSFs) were excluded from the study’s scope as their mineral resources require additional technical and due diligence analysis, which will be addressed in forthcoming studies.

The PFS results on the Mogale Gold assets were completed in July 2021. The PFS forecast average production of between 40 000 oz/y and 50 000 oz/y over an 11-year life-of-mine (LoM). Pan African is currently finalising a definitive feasibility study (DFS) on the project. DRA is leading the study.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The Mogale project has a pretax net present value, at a 10.71% discount rate, of R849-million and a real pretax internal rate of return of 22%, at an estimated $1 690/oz gold price at a $/R exchange rate of 15.00.

Capital Expenditure
Initial capital requirements for the hydraulic mining, plant, TSF and associated infrastructure is R1.99-billion, with a further R1.03-billion sustaining (and developmental) capital required during the estimated 11-year LoM.

Planned Start/End Date
The project is expected to start construction in January 2023, subject to approvals.

Latest Developments
The DFS on Mogale Gold’s TSF is being finalised, the results of which will be communicated in April or May of 2022.

A concept study on the Soweto Cluster is under way under the auspices of DRA.

Key Contracts, Suppliers and Consultants
DRA Global (fatal flaw analysis, PFS and DFS).

Contact Details for Project Information
Pan African Resources head of investor relations, Hethen Hira, tel +27 11 243 2900 or email hhira@paf.co.za.