REG-Pan African Resources Plc: Operational Update quarter ended 30/09/18

Pan African ResourcesAnnouncement

06/11/2018 07:05

Pan African Resources PLC

("Pan African" or “the company" or “the group”)

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

Share code on AIM: PAF

Share code on JSE: PAN

ISIN: GB0004300496

OPERATIONAL UPDATE FOR THE QUARTER ENDED 30 SEPTEMBER 2018    

Pan African is pleased to provide an operational update for the first quarter
of the 2019 financial year (“this quarter” or “first quarter”), and
further information on the performance of the Elikhulu Tailings Retreatment
Plant (“Elikhulu”).

Pan African CEO Cobus Loots commented:

“Pan African recorded a commendable safety and production performance for
the first quarter of the 2019 financial year. The group produced 37,729oz of
gold during the quarter, and with Elikhulu now commissioned and running at
design capacity, we are confident of achieving our production guidance of
approximately 170,000oz for the 2019 financial year.

Elikhulu ramped-up to its design capacity of 1-million tonnes per month during
October 2018, ahead of the original schedule and on budget. Average gold
recoveries achieved were consistent with our forecasts, with further
optimisation of recoveries expected in the short term. The incorporation of
the Evander Tailings Retreatment Plant (“ETRP”) into Elikhulu, which will
increase Elikhulu’s capacity to 1.2-million tonnes per month, is progressing
on schedule, with full commissioning expected to be completed by January 2019.

Barberton Mines is on track to meet its full-year production guidance of
100,000oz, with the underground operations’ production benefitting from
Fairview Mine’s high-grade 272 and 358 platforms, and the newly installed
regrind mill at the Barberton Tailings Retreatment Plant (“BTRP”)
performing as anticipated.

At Evander Mines, we have commenced mining and vamping of the remnant
high-grade stopes as part of the phased closure of the underground mining
operations as an initiative to supplement Evander Mines’ production, while
commencing with the equipping and preparatory work to advance the mining of
the 8 Shaft pillar and high-grade areas in proximity to the pillar. The first
phase of the equipping and preparatory work is expected to be completed in the
third quarter of the 2019 financial year.

The drilling programme on Barberton Mines’ Royal Sheba prospect has been
completed, and we look forward to updating shareholders on the progress of
this exciting growth project in the coming months with an updated resource
statement to be released by the end of November 2018, and the feasibility
study still on schedule for release in February 2019.”

Safety

The group has significantly improved its safety performance in the first
quarter, and we remain committed and focussed to ensuring the safety of all
our employees, while we continue to strive towards a zero harm environment.
* Fairview Mine achieved its one-million fatality-free shift milestone during
July 2018;
* The group had no fatalities in this quarter (2018 Q1: no fatalities);
* The group’s lost-time injury frequency rate improved significantly to 0.57
(2018 Q1:3.64);
* The reportable injury frequency rate improved significantly in this quarter
to zero (2018 Q1: 0.91); and
* The group is implementing recommendations from independent safety experts,
following reviews of the respective mining operations’ safety systems and
controls.
Elikhulu
* As previously communicated, Elikhulu was successfully commissioned during
September 2018, ahead of the original project schedule and on budget;
* During October 2018, the plant attained steady-state production with a
throughput of 1-million tonnes per month. The average gold recoveries achieved
were consistent with our forecasts, with further optimisation of recoveries
expected in the next months; and
* The incorporation of the existing ETRP throughput into Elikhulu’s
processing capacity, which will result in an increased processing capacity of
1.2-million tonnes per month, is on track with full commissioning expected to
be completed by January 2019.
* Barberton Mines Proprietary Limited (“Barberton Mines”)
* Barberton Mines produced 27,201oz for this quarter, with underground mining
operations contributing 21,278oz, and the BTRP contributing 5,923oz. Barberton
Mines remains on track to deliver its annual production guidance of
approximately 100,000oz for the 2019 financial year.
* Barberton Mines’ underground operations are benefitting from increased
underground mining flexibility due to, inter alia, both the high-grade 272 and
358 platforms being available at the Fairview Mine operation. The BTRP is also
benefiting from the commissioning of the regrind mill during May 2018, which
has improved throughput and recoveries.
* Barberton Mines has increased development rates to further improve Fairview
Mine’s mining flexibility at the 11-block by developing towards an
additional high-grade platform (256 platform), below the existing 272 and 358
platforms.  This platform is expected to be in production by the end of the
2019 financial year.
Evander Gold Mines Proprietary Limited (“Evander Mines”)
* Evander Mines has implemented the following initiatives to maximise Evander
Mines’ underground gold production:
1. Mining and vamping of the remnant high-grade stopes as part of the phased
closure of the underground mining operations, which contributed 3,815oz during
this quarter; and
2. While the above operations are ongoing, the mine has commenced equipping
and preparatory work to advance mining of the 8 Shaft pillar and high-grade
areas in proximity to the pillar, following a comprehensive review on the
technical merits thereof. The first phase of the equipping and development of
the 8 Shaft pillar and surrounding areas is estimated to be completed in the
third quarter of the 2019 financial year.
* The ETRP and surface-source operations produced 3,819oz for this quarter,
and the operation is investigating new sources of feed for the Kinross plant,
once the ETRP operation is integrated into Elikhulu.
The financial information contained in this announcement has neither been
reviewed nor audited by the company’s auditors and is the responsibility of
the directors of Pan African.

For further information on Pan African, please visit the company’s website
at www.panafricanresources.com

6 November 2018

 Contact information                                                                                                                                                                                                                                                                                                                                      
 Corporate Office The Firs Office Building 2nd Floor, Office 201 Cnr. Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0) 11 243 2900 Facsimile: + 27 (0) 11 880 1240  Registered Office Suite 31 Second Floor 107 Cheapside London EC2V 6DN United Kingdom Office: + 44 (0) 20 7796 8644 Facsimile: + 44 (0) 20 7796 8645  
 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 St James's Corporate Services Limited Company Secretary Office: + 44 (0) 20 7796 8644                                                                                                   John Prior / Paul Gillam Numis Securities Limited Nominated Adviser and Joint Broker Office: +44 (0) 20 7260 1000                                    
 Sholto Simpson One Capital JSE Sponsor Office: + 27 (0) 11 550 5009                                                                                                                                 Ross Allister/James Bavister/David McKeown Peel Hunt LLP Joint Broker Office: +44 (0) 20 7418 8900                                                   
 Julian Gwillim Aprio Strategic Communications Public & Investor Relations SA Office: +27 (0)11 880 0037                                                                                             Jeffrey Couch/Thomas Rider BMO Capital Markets Limited Joint Broker Office: +44 (0) 20 7236 1010                                                     
 Bobby Morse Buchanan Public & Investor Relations UK Office: +44 (0)20 7466 5000 Email: PAF@buchanan.uk.com                                                                                                                                                                                                                                               
 Website: www.panafricanresources.com                                                                                                                                                                                                                                                                                                                     



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