16th Aug 2018 09:35
LONDON (Alliance News) - Pan African Resources PLC said on Thursday it has completed the construction of the Elikhulu tailings retreatment plant in South Africa, marked by its first gold pour.
Construction of the plant was completed ahead of schedule and within its ZAR1.74 billion budget.
The commissioning phase is expected to be completed in September, with a steady state production of 50,000 ounces of gold per annum, at an all-sustaining cost of between USD650 per ounce and USD700 per ounce.
In addition, the incorporation of the Evander tailings retreatment plant into Elikhulu is scheduled to be completed in December which will allow the enlarged plant to process throughput of 1.2 million tonnes per month and produce 70,000 ounces of gold.
Over the life of the project, Elikhulu is expected to produce 670,000 ounces of gold of a value of ZAR11.5 billion at a price of ZAR550,000 per kilogram.
"We expect Elikhulu to be a flagship operation within our low-cost, long-life asset base, and we will continue to focus on improving and expanding our portfolio in a sustainable manner to the benefit of all stakeholders," said Chief Executive Officer Cobus Loots.
Pan African's London shares were up 3.7% at 7.75 pence, while its Johannesburg shares were up 2.2% at ZAR1.41 on Thursday.
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