Pan African Resources (AIM: PAF, AltX: PAN) perked up today after releasing a detailed update on progress at its Manica gold project in Mozambique.
The African focused gold exploration and production company upgraded the total resource estimate (indicated, inferred and measured) at Manica by 18% to 1.55 million ounces of contained gold. The upgrade included higher gold grades at the Fair Bridge prospect where infill drilling increased the total resource by 20% to 1.245 million ounces.
Further updates on the resource estimates at Manica are expected with another 6000 metres of drilling earmarked for the Fair Bridge prospect and 9000 metres of reverse circulation drilling at the Guy Fawkes prospect. Both drilling campaigns are expected to be complete before year end.
“The latest results from the drilling programme have not only confirmed the Company’s expectation that the grade at the Fair Bride prospect is higher than previously anticipated, but has also outlined additional resources at depth and along strike, at Fair Bride, as well as at the Guy Fawkes and Dot’s Luck prospects." commented Jan Nelson, CEO of Pan African. "As a result of the identification of these additional resources, the completion of the pre-feasibility study will now be delayed until Q1 2008 to accommodate all of the new information. The Company is looking forward to reporting on the ongoing results during the course of the year.”
Shares in Pan African Resources rose 6%.