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Additional Information

Market:	AIM
Sector:	Gold Mining
EPIC:	PAF
Latest Price:	17.75 (0.00%)
52-week High:	17.75
52-week Low:	9.51
Market Cap:	256.48M

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Pan African Resources Full Pan African Resources profile here

Pan African is a gold mining company, focussed on projects in South African and Mozambique, that produces approximately 100,000oz per year.

Its focus is on developing low cost, high margin production or near production projects. The Company has no debt, is unhedged and is able to fund all of its current on-mine capital from current cashflows.

The recent acquisition of Phoenix Platinum Mining (Pty) Ltd (Phoenix Platinum) does not change the gold focus of the Company. Preliminary sampling and recovery results have exceeded expectations and management’s proactive actions could see plant construction as early as the first half of 2010, with production likely in first half of 2011. However, this production outlook is sensitive to management’s ability to secure plant location.

Pan African Resources and International Ferro Metals move tailings retreatment discussions to next p

Friday, February 19, 2010

South African gold producer Pan African Resources (LSE: PAF, JSE: PAN) and ferrochrome producer, International Ferro Metals (LSE: IFL)("IFM") have moved one step closer to agreeing on terms that will allow the construction of a chrome tailings retreatment plant.

Pan African’s subsidiary, Phoenix Platinum is seeking to build the plant at International Ferro Metals Lesedi operations to extract Platinum Group Metals (PGM) from historic chrome tailings. International Ferro Metals also holds a 25% Net Profit Interest (NPI) on the PGM contained in the tailings at Lesedi, which Phoenix Platinum has now agreed terms to acquire the NPI for approximately £6.8 million in cash. Phoenix has paid IFM a £170,000 non-refundable exclusivity fee while the negotiations are completed.

Phoenix Platinum owns the rights to the PGM content in the current and historical chrome tailings discards, which were generated from chrome seam mining in the Bushveld Igneous Complex. Pan African Resources reckons the tailings on site could support an operation processing 240,000 tonnes per annum for 17 years, producing approximately 11,000 ounces PGM 4E (platinum, palladium, rhodium and gold) annually. The current estimated capital expenditure to build the facility is £6 million.

“The Agreement allows the Parties to negotiate exclusively for a 12 month period ("Exclusivity Period") to finalise the exact… site location on the IFM Property, and also to resolve technical issues relating to the required services and associated facilities and utilities. The Exclusivity Period may be extended by a further six months by mutual agreement,” Pan African reported.

Jan Nelson, Chief Executive Officer of Pan African, commented: "The signature of this agreement marks a significant milestone in advancing our Phoenix project to production. Final plant design engineering work is expected to be completed within four months after the conclusion of a formal CTRP and NPI agreement, whereupon the CTRP construction will commence. We expect that the CTRP should be commissioned within 12 months from commencement of earthworks, which means that H1 of 2012 is a realistic production start-up date."

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