30th Nov 2018 08:45
LONDON (Alliance News) - Pan African Resources PLC said on Friday it is "very pleased" with the results of its in-fill drilling programme and with the updated mineral resource estimate for the Royal Sheba project in South Africa.
The company said exploration results exceeded expectations, with a 6% increase in the near-surface mineral resource to 370,000 ounces from 350,000 ounces.
"The updated MRE is considered conservative, exhibiting a high level of confidence, and the company believes there is further exploration upside," Pan African said, adding that the new estimate is also conducive to open-pit mining.
Royal Sheba's near-surface drilling confirmed robust mineralisation extending from the surface along a 900 metre strike and 150 metre down dip.
The definitive feasibility study undertaken by DRA Global (Pty) Ltd is progressing well and is expected to be completed in February 2019, Pan African added.
"Pan African is very pleased with the outcome of our in-fill drilling programme and the updated mineral resource estimate for the Royal Sheba project. The drilling programme has confirmed that the orebody extends to surface, with the potential to establish a new open pit mining operation, which will transition to an underground mining operation only after a number of years," said Chief Executive Cobus Loots.
Loots added: "The scale and grade of the Royal Sheba mineral resource gives us confidence to advance the near-surface mineral resource to a definitive feasibility study status."
In Johannesburg, Pan African shares were flat at ZAR1.45 while the stock in London was up 1.8% at 8.30 pence.
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