Pan African board approves R200m Evander tailings retreatment project
Following the acquisition of the Mpumalanga-based Evander Gold Mines from Harmony Gold in March last year, Pan African Resources last week announced that the construction of its R200-million Evander tailings retreatment project (ETRP) had been approved.
The ETRP will exploit historically generated gold tailings deposited on the nearby Kinross tailings storage facility (TSF) and is expected to retreat 2.16- million a year of gold tailings for 14 years.
The TSF is situated adjacent to the Kinross metallurgical processing plant and falls within the tenure of the Evander mining right.
The tailings project, commissioning of which will begin in January next year, comprises a total mineral resource of 597 000 oz and a mineral reserve of 369 000 oz.
Once completed in June next year, it is expected that the ETRP will contribute some 10 000 oz/y to Evander’s gold production at an expected cash cost of $800/oz.
The project will be fully funded by a gold loan of some 15 700 oz from Absa Bank and Pan African, thus, does not expect the cost of construction to impact materially on its other cash flows.
The loan will be repaid in quarterly instalments over a four-year period, starting in August.
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