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Pan African pours first gold at Elikhulu

Pan African Resources (AIM:PAF) has poured its first gold at the Elikhulu tailings retreatment plant in in Evander in South Africa’s Mpumalanga province.
Pan African pours first gold at Elikhulu Pan African pours first gold at Elikhulu Pan African pours first gold at Elikhulu Pan African pours first gold at Elikhulu Pan African pours first gold at Elikhulu

Minister of mineral resources Gwede Mantashe at a tour of the Elikhulu tailings retreatment plant

Staff reporter

Construction of the R1.74 billion (US$120.2 million) project was completed ahead of schedule and within budget, less than a year after construction began.

The gold pour on Thursday was attended by minister of mineral resources Gwede Mantashe. 

The commissioning phase of Elikhulu is expected to be completed next months, with the plant's steady-state production to be around 55,000 ounces per annum of gold at an all-in sustaining cost of US$650-700 per ounce.

Pan African said it was due to combine the 200,000 tonnes per month Evander tailings retreatment plant with Elikhulu in December, which would increase total throughput capacity to 1.2 million tonnes per month to produce 70,000ozpa of gold.

Over the 13-year life of the project, Elikhulu is expected to produce 674,000oz of gold with a value of around R11.5 billion at a gold price of R15,592/oz.

This is expected to translate into R5.3 billion into the South African economy for goods and services and R1.3 billion into taxes and royalties.

Pan African CEO Cobus Loots said the first gold pour was ahead of schedule and within budget.

"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," he said.

In May, Pan African decided to halt underground mining at the narby Evander gold mine.

The company' shares were up 2.53% Thursday to 7.66p (US9.7c).