REG-Pan African Resources Plc: Barberton Mines Completed Drilling Programme

Pan African ResourcesAnnouncement

06/05/2022 10:45

Pan African Resources PLC

(Incorporated and registered in England and Wales under the Companies Act 1985
with registered number 3937466 on 25 February 2000)

Share code on AIM: PAF

Share code on JSE: PAN

ISIN: GB0004300496

ADR ticker code: PAFRY

(“Pan African” or the “Company” or the “Group”)

PAN AFRICAN SUCCESSFULLY EXPLORES EXTENSIONS OF ITS WORLD CLASS ORE BODIES AT
BARBERTON MINES WITH A RECENTLY COMPLETED UNDERGROUND DRILLING PROGRAMME

HIGHLIGHTS
* A total of 68 underground diamond core boreholes drilled, with approximately
7,000 metres of drilling
* High-grade intersections at down-dip extensions to orebodies at Fairview,
Sheba and Consort Mines, reefs remain open at depth
* Grades of up to 184g/t over 0.85m at Sheba Mine intersection, with free gold
visible in core samples and development ends
* Exploration results will inform and enhance the Group’s Mineral Resource
and Reserve estimates - updates to be presented with the Company’s annual
results on 14 September 2022
* Enhanced geological understanding will support additional drilling
programmes in future years
In recent years, Pan African has increased its exploration focus on the
down-dip extension of the existing ore bodies at its Barberton Mines. During
the Company’s 2020 financial year, Barberton Mines conducted diamond core
drilling in excess of 8,700m, increasing to over 9,000m in the 2021 financial
year. Specific focus was placed on near mine infill drilling, as well as
down-dip Reserve delineation drilling of the available underground Mineral
Resources.

Pan African is pleased to advise shareholders that drilling into the down-dip
extents of the ore bodies yielded successful and significant high-grade
drilling results, with visible gold in several drill intersections and
development ends.

Cobus Loots, CEO of Pan African, commented: ”Our continued focus on
increased Resource and Reserve delineation through systematic exploration
programmes has again yielded excellent results and improved our geological
understanding of our Barberton operations, demonstrating the extent and
quality of our world-class, long-life orebodies. We look forward to reporting
continued success with our exploration programmes at Barberton and at our
Evander Mines”.

Fairview Mine
* Mining on multiple reef platforms, increased mining widths and high average
grades
* Additional Mineral Resource blocks identified
* All Reefs remain open up-dip and down-dip
Fairview Mine exploits some of the highest grade gold ore bodies globally,
with the Main Reef Complex (MRC) averaging over 40g/t with a mining width in
excess of 6m and the Rossiter Reef averaging around 20g/t over a mining width
of circa 2.5m. Additional Mineral Reserves with average grades of nearly 15g/t
are also extracted at the Fairview Mine, including the Hope Reef.

The MRC, being mined below 64 Level, is the highest grade orebody currently
being extracted at Barberton Mines. A total of six diamond drill holes were
recently completed to explore the immediate down-dip extent from the currently
mined platform (258) to the next platform (259). These drill holes resulted in
the delineation of the Mineral Resource on the 259 platform elevation of an
estimated 24.5kt at 42.6g/t. A single platform at Barberton Mines is currently
mined over a period of approximately 3 years. The down-dip of this orebody is
still open and informs the 20 year life of mine of the Fairview operation.
Assay results of the initial boreholes are summarised in the table below.

 Borehole No  Channel Width (m)  Gold (Au) Grade (g/t)  
   258 XF1           1.06                 1.09          
   258 XF2           7.06                34.79          
   258 XF3           4.84                41.85          
   258 XF4           6.00                32.96          
   258 XF5           7.50                30.67          
   258 XF6                 Assays pending               

Mining of the Rossiter Reef occurs on the 52 Level elevation. The up-dip and
down-dip extents of the Rossiter Reef remain open. Eleven diamond drill holes
have been drilled into the 54 Level down-dip target of the Rossiter Reef. The
boreholes drilled intersected significant free gold mineralisation with grades
ranging from 29g/t over 2.9m to 165g/t over 0.7m, in different boreholes. The
combined drilling results yielded an additional Mineral Resource block of an
estimated 3.6kt grading 55.3g/t, which will support mining in the next
financial year. A representative extract of the drill hole results from the
ore body is detailed in the table below.

 Borehole No  Channel Width (m)  Au Grade (g/t)  
    54ROS1           1.85             45.20      
    54ROS2           2.56             33.06      
    54ROS3           2.89             29.20      
    54ROS4           0.73            164.95      

The Hope Reef is mined on 64 Level at an average grade of 6g/t, with both the
down-dip and the up-dip extents of the orebody being open. Reserve delineation
of this ore body targeted the up-dip continuation up to 58 Level with a total
of 15 underground diamond holes drilled to delineate the up-dip extent. These
boreholes resulted in an additional Mineral Resource block with an estimated
25kt grading 7.5g/t, to supplement Fairview Mine’s overall Mineral
Resources. The table below outlines some of the representative
intersections’ assay results:

 Borehole No  Channel Width (m)  Au Grade (g/t)  
    58HR02           2.59             12.02      
    58HR03           3.90             2.28       
    58HR04           5.21             4.54       
    58HR05           5.87             3.80       
    58HR06           8.53             14.73      

Sheba Mine
* Drilling has upgraded a portion of the Zwartkoppie (ZK) orebody Inferred
Mineral Resource to the Measured and Indicated category
* Several high-grade intersections with channel widths of between 0.76m and
1.05m grading in excess of 100g/t gold, with visible free gold in the 260
Cross fracture and Northern Limb
* Reefs remain open up-dip and down-dip
Mining at Sheba Mine recently progressed into the down-dip Mineral Resources
of the ZK ore body on 37 Level. The ZK ore body is typically a free gold
carrying deposit. A total of ten diamond holes have been drilled to explore
the ZK orebody between the 37 Level and 38 Level elevations. These drill holes
were utilised to upgrade the existing Inferred Mineral Resource block to the
measured category, and contains an estimated 3kt at 5.2g/t.

Additionally, shallow Mineral Resources on the Northern Limb at 22 Level
elevation were explored with an initial two diamond boreholes. Hole 23GM12
yielded 2.3g/t over 1m, 23GM11 yielded 7.2g/t over 1m and 8.3g/t over 1m in
two successive structures. Eight additional boreholes into this ore body are
planned for in the next financial year (FY23). On 23 Level, a further eleven
diamond holes were drilled to explore the up-dip extent of the 260 Cross
Fracture. Results of the drilling ranged from 10.7g/t over 0.7m to 184.2g/t
over 0.8m. All the drill hole results, of which an extract of high-grade
intersections from two boreholes are detailed in the table below, were
considered in the Mineral Resource calculations and yielded an Indicated
Mineral Resource block of 2.3kt at 13g/t.

 Borehole No  Channel Width (m)  Au Grade (g/t)  
  22 260-01          1.06             27.71      
  22 260-01          0.96             13.41      
  22 260-01          1.05            127.62      
  22 260-01          0.89             51.93      
  22 260-01          1.00             15.02      
  22 260-01          0.69             10.69      
  22 260-01          0.85            142.36      
  22 260-01          0.70            113.00      
  22 260-01          0.85            184.17      
  22-260-08          0.99             49.52      
  22-260-08          0.97             14.75      
  22-260-08          0.96             42.33      
  22-260-08          0.99             38.73      
  22-260-08          1.00             27.01      
  22-260-08          0.93            139.18      
  22-260-08          0.8             133.15      
  22-260-08          0.62             20.25      
  22-260-08          0.76             26.31      
  22-260-08          1.00             72.99      
  22-260-08          0.80             77.06      
  22-260-08          0.76            136.53      
  22-260-08          0.98             91.31      

Consort Mine
* Reserve delineation drilling indicates the high-grade 42 Level orebody at
Prince Consort PC Shaft down dip extension continues below 44 Level
* Reef remains open down-dip
Following the successful intersection of the high-grade, free gold-yielding
orebody at 42 Level PC shaft at Consort Mine, a Reserve delineation drilling
programme was planned to explore the down-dip continuation of this high-grade
ore body. Borehole 45BH5 intersected a high-grade free gold carrying structure
at the 44 Level elevation, indicating the down-dip extent of the 42 Level ore
body for at least another two levels. The assay results from this intersection
yielded 72.8g/t over 0.86m.

All the drill hole results will be taken into account to update the Group’s
Mineral Resource and Mineral Reserve models, and will be presented with the
Company’s annual results on 14 September 2022. The Barberton Mines
exploration results (in relation to substantial mineral assets) comply with
the SAMREC Code, as per paragraph 12.12(a) of the JSE Listings Requirements.
The listed drill holes yielded additional Mineral Resource blocks in excess of
58kt at an average grade over 25g/t, combined.

The reported Mineral Resource for the Barberton Mines’ Underground
operations, as at 30 June 2021 is shown in the table below:

  Category  Tonnes (Mt)  Au Grade (g/t)  Ounces (koz)  
 Measured       7.98          4.77          1,224.4    
 Indicated      7.58          3.51           854.6     
 Inferred       8.76          4.91          1,382.8    
 Total         24.32          4.43          3,461.8    

The reported Mineral Reserve for the Barberton Mines’ Underground
operations, as at 30 June 2021 is shown in the table below:

 Category  Tonnes (Mt)  Au Grade (g/t)  Ounces (koz)  
 Proven        6.72          3.29           710.9     
 Probable      7.74          3.65           908.2     
 Total        14.47          3.48          1,619.1    

The Competent Person for Pan African, Mr Hendrik Pretorius, the Group
Technical Services Manager, has reviewed and approved, in writing, the
information contained in this announcement. Mr Pretorius is a member of the
South African Council for Natural Scientific Professions as well as a member
in good standing of the Geological Society of South Africa.

The information contained in this update is the responsibility of the Pan
African board of directors and has not been reviewed or reported on by the
Group’s external auditors.

Certain information communicated in this announcement was, prior to its
publication, inside information for the purposes of Article 7 of Regulation
596/2014.

Rosebank

6 May 2022

For further information on Pan African, please visit the Company's website at

www.panafricanresources.com

 Contact information                                                                                                                                                                                                                                                                                  
 Corporate Office The Firs Office Building 2nd Floor, Office 204 Cnr. Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0)11 243 2900 info@paf.co.za  Registered Office Suite 31 Second Floor 107 Cheapside London EC2V 6DN United Kingdom Office: + 44 (0)20 7796 8644  
 Cobus Loots Pan African Resources PLC Chief Executive Officer Office: + 27 (0)11 243 2900                                                                                         Deon Louw Pan African Resources PLC Financial Director Office: + 27 (0)11 243 2900                                 
 Phil Dexter/Jane Kirton St James's Corporate Services Limited Company Secretary Office: + 44 (0)20 7796 8644                                                                      Ross Allister/Alexander Allen Peel Hunt LLP Nominated Adviser and Joint Broker Office: +44 (0)20 7418 8900         
 Ciska Kloppers Questco Corporate Advisory Proprietary Limited JSE Sponsor Office: + 27 (0)11 011 9200                                                                             Thomas Rider/Nick Macann BMO Capital Markets Limited Joint Broker Office: +44 (0)20 7236 1010                      
 Hethen Hira Pan African Resources PLC Head: Investor Relations Tel: + 27 (0)11 243 2900 E-mail: hhira@paf.co.za                                                                   Website: www.panafricanresources.com                                                                               



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