It said the near-surface mineral resource had increased to 370,000 ounces of gold from 5.85 million tonnes at 1.96g/t from the previous 350,000oz from 2.84Mt at 3.81g/t and was conducive to openpit mining.
The total mineral resources signed off by SRK Consulting was 800,00oz of gold from 8.96Mt at 2.62g/t, with the underground mineral resource delineated at 390,000oz from 3.12Mt at 3.87g/t.
Pan African said the updated estimate had was still considered conservative.
The 4,311m infill drilling programme confirmed mineralisation extending from the surface along a 900m strike and 150m down dip of the Royal Sheba orebody.
It also determined a mineralisation range of 5-25m to 25m in width with in-situ gold grades averaging 3.14g/t.
CEO Cobus Loots said the infill drilling programme had confirmed the orebody extended to surface and had the potential to establish a new openpit mining operation, which would transition to an underground operation only a number of years.
He said Royal Sheba's definitive feasibility study, carried out by DRA Global, was progressing well, with completion expected in February 2019.
Pan African has also started an extended exploration drilling programme at targeting the Main Maiden Reef orebody ay Barberton Mines' mining right at New Consort Mines, which could potentially be a satellite despot for Royal Sheba.
"We are excited by the further prospectivity of our mining lease specifically New Consort, where drilling has recently commenced to identify similar near-surface mineral resources at the Main Maiden Reef orebody, targeting 200,000-300,000oz at an in-situ grade of between 2g/t and 4g/t," Loots said.
The company's shares rose 1.84% on the news Friday to 8.3p (US10.63c).