S TA K E H O L D E R S • G ROW T H • P RO F I TA B L E • S U S TA I N A B L E
MINERAL RESOURCES AND MINERAL RESERVES REPORT FOR THE YEAR ENDED 30 JUNE 2015
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SCOPE OF REPORTThis abridged version of the Pan African Resources
Mineral Resources and Mineral Reserves Report
2015 (MR&MR) conforms to the standards
determined by the South African Code for the
Reporting of Exploration Results, Mineral Resource
and Mineral Reserve (the SAMREC Code, 2007
edition) and forms part of Pan African Resources’
Integrated Annual Report including the annual
fi nancial statements for the year ended 30 June 2015.
The other major document in this suite of reports
is the Sustainable Development Report 2015. The
entire suite of documents will be available in full on
www.panafricanresources.com in due course,
following publication of Pan African Resources’
annual fi nancial statements including a full MR&MR.
The mineral resource is inclusive of the mineral
reserve component, unless otherwise stated.
Information is presented either by operation, mine
or project, as indicated. The tables and graphs used
to illustrate developments across the operations of
Pan African Resources in FY15 include:
• Mineral resources tables by group and commodity
• Mineral reserves modifying factors
ABOUT THIS REPORT
• Mineral reserves tables by group and commodity
• Development sampling results and ore reserve
projects
• Appointed competent persons.
Matters on which detail is provided in this
abridged version include regional geology, location,
exploration drilling and organic ore reserve projects.
Note, rounding of numbers in this document may
result in minor computational discrepancies.
REPORTING CODEThe guiding principle in the MR&MR is to ensure
integrity, transparency and materiality in informing
all stakeholders on the status of the group’s
mineral asset base. Pan African Resources uses the
SAMREC Code which sets out the internationally
recognised procedures and standards for reporting
Mineral Resources and Mineral Reserves in South
Africa, developed by the South African Institute
of Mining and Metallurgy as the recommended
guideline for reserve and resource reporting for
JSE-listed companies. Distinct effort has also been
made to comply with AIM Rules for Mining and Oil
and Gas Companies of the London Stock Exchange.
GOLDRelationship between exploration results, mineral resources and mineral reserves showing Pan African
Resources attributable resources and reserves as at 30 June 2015.
PGEsRelationship between exploration results, mineral resources and mineral reserves showing Pan African
Resources’ attributable resources and reserves as at 30 June 2015.
RESOURCES
Total 31.9Moz Au
Inferred
9.2Moz Au
Indicated
20.5Moz Au
Measured
2.2Moz Au
EXPLORATION RESULTS
RESERVES
Total 10.4Moz Au
Probable
9.4Moz Au
Proved
0.9Moz Au
EXPLORATION RESULTS
RESOURCES
Total 0.6Moz PGEs
Inferred
0.1Moz PGEs
Indicated
0.4Moz PGEs
Measured
0.1Moz PGEs
RESERVES
Total 0.5Moz PGEs
Probable
0.4Moz PGEs
Proved
0.1Moz PGEs
CONTENTSOur vision and
investment case 2
Highlights 3
Who we are 4
Our business model 6
Operating assets 8
Group strategy 10
Group mineral resources
and mineral reserves 12
Group organic growth 14
Barberton Mines 16
Evander Mines 32
Phoenix Platinum 50
Glossary 59
Company information ibc
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1 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
• Mine call factor (MCF)
• Plant recovery factors
• Planned cash operating costs and other
effi ciency factors, which are calculated using
historical achievements as a baseline.
The mineral reserves represent that portion of
the Measured and Indicated Mineral Resources
above cut-off in the life of mine plan, and have been
estimated after consideration of the modifying
factors affecting extraction. A range of disciplines
has been involved at each mine in the life of mine
planning process including geology, surveying,
planning, mining engineering, rock engineering,
metallurgy, fi nancial management, human resources
management and environmental management.
The competent person for Pan African Resources,
Mr Barry Naicker, the group mineral resource
manager, signs off the MR&MR for the group. He is a
member of the South African Council for Scientifi c
Professions (400234/10). Mr Naicker has 14 years
of experience in economic geology and mineral
resource management. He is based at 1st Floor,
The Firs, cnr. Cradock and Biermann Avenues,
Rosebank 2196, Gauteng.
PAN AFRICAN RESOURCES’ REPORTING IN COMPLIANCE WITH THE SAMREC CODETo meet the requirement of the SAMREC Code that
the material reported as a Mineral Resource should
have “reasonable and realistic prospects for eventual
economic extraction”, Pan African Resources has
determined an appropriate cut-off grade which has
been applied to the quantifi ed mineralised body.
In determining the mineral resource cut-off grade,
Pan African Resources uses a gold price of
R500,000/kg. At our underground mines, the
optimal cut-off is defi ned as the lowest grade at
which an orebody can be mined such that the total
profi ts, under a specifi ed set of mining parameters,
are maximised. The mineral resources optimiser
tool that was accordingly developed in-house was
applied to the mineral resource inventory.
The optimiser programme requires the following
inputs to convert the mineral resources to the
mineral reserves:
• The database inventory of all mineral resource
blocks
• An assumed gold price – ZAR400,000/kg
• Planned production rates for each mine
The guiding principle in the
MR&MR is to ensure integrity,
transparency and materiality in
informing all stakeholders on the
status of the group’s mineral
asset base.
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2 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
INVESTMENT CASEPan African Resources is a mid-tier African-focused
precious metals producer.
OUR VISIONTo continue to build a precious metals business in Africa
by remaining focused on our four strategic pillars.
Proven business model, committed to low-cost production and optimising extraction effi ciency
• Culture of delivery – Barberton Mines’
BTRP and Evander Mines’ ETRP
• Quality assets delivering good returns
• Focused on strong and sustainable margins
• Total mineral resources gold of 31.9Moz
and 0.6Moz of platinum group elements
• People focused
Preferred gold investment
• Profi table production growth from
long life assets
• Signifi cant resource and reserve base
• Ability to conclude further value accretive acquisitions
• Strong track record of replenishing
mineral reserves by targeting exploration and
development to increase the life of mine
Delivering consistent returns
• Attractive dividend yield
• High margin assets allow for dividend
to be maintained
• Robust statement of fi nancial position
Disciplined approach to capital management
• Management team that continues
to drive shareholder value
Committed to sustainability
• Focused on achieving zero harm
• Legacy of environmentally responsible
mining
• Strong relationships with labour,
government and communities
People Fostering relationships through
action, integrity and honesty
ActionLeadership, planning and control
ResultsDelivering on all our targets without compromise
Maximise sustainable gold
Positive impact on earnings
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3 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
HIGHLIGHTSin context of our four strategic pillars
LIFE OF MINE
BARBERTON MINES 20 YEARS
EVANDER MINES 16 YEARS
PHOENIX PLATINUM 28 YEARS
BTRP 15 YEARS
ETRP 16 YEARS
PROFITABLE
GROWTH
SUSTAINABLE
STAKEHOLDERS
Stakeholder ENGAGEMENT
Local ECONOMIC
DEVELOPMENT
MINERAL TENURE
LONGEVITY in operations
Organised LABOUR
Barberton Mines: 10.9g/t
Evander Mines: 4.6g/t
Phoenix Platinum: 3.3g/t (headgrade – g/t)
HIGH GRADE/
LOW COST producer
ETRP performing as anticipated
BTRP at steady state production
MINERAL RESERVES
Gold 10.1Moz UP 3.0%
PGEs 0.5Moz DOWN 3.9%
ETRP in PRODUCTION
Life of mine INCREASED
ORGANIC GROWTH PROJECTS
BARBERTON MINES – MRC OREBODY EXTENSION,
CLUTHA MINE AND EVANDER SHAFT 8 – 26 LEVEL
BROWNFIELD PROJECTS EVANDER SOUTH, ELIKHULU (TAILINGS PLANT),
POPLAR AND ROLSPRUIT
MINERAL RESOURCES
Gold 31.9MOZ
PGEs 0.6MOZ
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4 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
WHO WE ARE
ORGANISATIONAL STRUCTURE
Note 1: During the year, Pan African Resources announced the acquisition of the Uitkomst Colliery from Shanduka (related party) and its joint venture operating partner. This acquisition is
subject to suspensive conditions typical for a transaction of this nature.
Emerald Panther Investment 91 Pty
Ltd (Incorporated in South Africa)
Dormant
Evander Gold Mines Ltd
(Incorporated in South Africa)
PT Sands Pty Ltd
(Incorporated in South Africa)
Dormant
Evander Gold Mining Pty Ltd
(Incorporated in South Africa)
Evander Mining Operations
Barberton Mines Pty Ltd
(Incorporated in South Africa)
Barberton Mining Operations
Phoenix Platinum Mining Pty Ltd
(Incorporated in South Africa)
Phoenix Platinum, Chrome Tailings
Retreatment Project
Pan African Resources Management
Services Company Pty Ltd
(Incorporated in South Africa)
Management services company that
provides management services to
operations
Pan African Resources Funding
Company Pty Ltd (Incorporated in
South Africa)
Group treasury company
100%
100%
100%
100%
100%
100%
100%
100%
OUR HISTORY
Exploration phase
Admitted to
AIM in May
Incorporated
as Viking
Internet PLC
in February
Acquired 74% of
Barberton Mines from
Metorex Limited
Acquired the remaining
26% of Barberton
Mines from Shanduka in
exchange for 295.7 million
shares in the company
Commissioned
Barberton Tailings
Retreatment Plant
Finalised the acquisition of
100% of the share capital of
Evander Mines for a total
net purchase consideration
of ZAR1.3 billion
Exercised the option to
acquire 100% of Phoenix
Platinum from Metorex
for cash in May
Commissioned
Evander Tailings
Retreatment Plant
20002007
2009
2013
20152001 – 2006
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5 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
OUR OPERATIONS Barberton Mines is a low cost,
high grade, greenstone belt
producing operation which has
contributed signifi cantly to Pan
African Resources’ successful track
record. Barberton Mines production
capacity is 95,000oz Au from
underground and 20,000oz from
Barberton Tailings Retreatment
Plant (BTRP) per annum
1
The acquisition of Evander Mines in 2013 was transformational for
Pan African Resources as it paved
the way for the company to
become a mid-tier gold producer
with a strong, long-term project
pipeline. Evander Mines production
capacity from underground
operations is 95,000oz per annum
and from the ETRP 10,000oz
per annum
2
Phoenix Platinum is a tailings
retreatment plant designed to
extract 10,000oz of platinum group
metals per annum from chrome
tailings
3
Pan African Resources is a
mid-tier African focused precious
metals producer with quality
assets in South Africa
Towns and cities on main roads
Provinces
Neighbouring country
Towns close to project locations
Kruger
National
Park
Nelspruit
BarbertonMiddelburgPretoria
Johannesburg
Zeerust
Rustenburg
Potchefstroom
Klerksdorp
TaungKuruman
Vryburg
Witbank
Secunda Ermelo
NORTH WEST PROVINCE
GAUTENG
MPUMALANGA
3
2
1
LIMPOPO
BOTSWANA
FREE STATENORTHERN CAPE
KWAZULU-NATAL
For further information on our operations and operating assets refer to pages 8 and 18.
KEY FEATURES
African mid-tier precious metals business
• Quality assets producing approximately 215,000oz of gold
per annum
• Focused on maintaining and increasing profi table production
ounces
Dual listed on London’s AIM and South Africa’s JSE
• Market capitalisation at 30 June 2015 of ZAR3.3 billion
• Diversifi ed shareholder base, major South African and
international institutions
• Shanduka Resources as empowerment partner with 23.83%
direct shareholding, equating to an effective 26.2% black
economic empowerment (BEE) ownership for the purposes
of the Mineral and Petroleum Resources Development Act
(MPRDA). More detail on this transaction can be found
in our sustainable development report on the
group website www.panafricanresources.com
Cash fl ow generative and dividend paying
• Progressive dividend policy and track record of sector leading
dividend payouts
• Historic dividend yield in excess of 6%
• Low level of gearing with strong balance sheet
• Access to funding facilities of ZAR1.2 billion
Signifi cant growth projects
• Resources base in excess of 31Moz
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6 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON MINES AND BARBERTON
TAILINGS RETREATMENT PLANT (BTRP)
• Fairview, Sheba and Consort mines produce
~95koz of gold per annum
• Average tonnages milled ~300kt in excess
of 10g/t• BTRP produces ~20koz of gold per annum
• BTRP processing capacity of 1.2 million tonnes per annum at a headgrade of 1.4g/t
OUR BUSINESS MODEL
O
UR
IN
PU
TS
OU
R A
CT
IVIT
IES AND OUTPUTS
FINANCIAL CAPITAL
ZAR1.2 billionin available funding facilities
MANUFACTURED CAPITAL
Property, plant and equipment of
ZAR3.5 billion
PAN AFRICAN RESOURCES USES THE
SIX FORMS OF CAPITAL IN ITS BUSINESS
ACTIVITIES TO CREATE STAKEHOLDER
VALUE
HUMAN CAPITAL
4,326 employeesand 1,095 contractors
INTELLECTUAL CAPITAL
Barberton and Evander Mines mining and
prospecting licences, key personnel for
managing the BIOX® process
SOCIAL AND RELATIONSHIP
CAPITAL ZAR20.8 millioninvested in communities
NATURAL CAPITAL
1,376,815Gj of electricity and
12,249m2 of water used by
group operations
EVANDER MINES AND EVANDER
TAILINGS RETREATMENT PLANT (ETRP)
• 8 Shaft produces ~95koz of gold per annum
• Average 8 Shaft tonnages
milled ~400kt at between 5g/t – 7g/t
• ETRP produces 10koz of gold per annum from
tailings processing
• ETRP processing capacity of 2.4 million tonnes per annum
at a headgrade of 0.3g/t
PHOENIX PLATINUM CHROME
TAILINGS RETREATMENT PLANT (CTRP)
• CTRP produces ~10koz of PGE per annum
• CTRP processing capacity ~300kt per annum
OTHER ACTIVITIES
• Growing the business through
organic and acquisitive opportunities such as:
– Evander South Project– Elikhulu Tailing Retreatment
Project– Uitkomst Colliery
PRODUCES
~10kozof PGEs
per annum
EXTERNAL ENVIRONMENT Gold market
Capital and foreign exchangemarkets
PRODUCES in excess of
215kozof gold
per annum
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7 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
O
UR
OU
TC
OM
ES
OUR IMPACTS
THERE ARE SOME IMPACTS
ON HUMAN AND
NATURAL CAPITAL THAT
ARE INHERENT TO MINING
ACTIVITIES
ONE FATALITY ACCIDENT RATES PER
MILLION MAN HOURS
TRIFR 11.14 LTIFR 2.29RIFR 1.11
1,376,815Gj OF ELECTRICITY USED
12,249m3 OF WATER
USED
CARBON EMISSIONS
OF 0.1tCO2e/tMILLED
REVENUE GENERATED ZAR2,539.4 million
– ZAR2,441.0 million gold revenue
– ZAR98.4 million PGE revenue
VALUE DISTRIBUTION
EMPLOYEES
ZAR910.8 million
SHAREHOLDERS
dividends paid in
December 2014
ZAR258 million
GOVERNMENT
ZAR282.3 million
including income tax, royalty,
skills development levy, PAYE
CSI and SED spend of
ZAR20.8 million
REINVESTED in infrastructure
ZAR352 million
Regulatoryenvironment
Energyconstraints
Labour and communities
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8 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
OPERATING ASSETSPan African Resources is a mid-tier African-focused precious metals producer
with a production capacity of 215,000oz gold and 10,000oz PGEs per annum. The group’s assets include:
• BARBERTON MINES: three gold mines and the BTRP in Mpumalanga
• EVANDER MINES: a gold mine in Mpumalanga, ETRP and several
brownfi eld projects
• PHOENIX PLATINUM: the CTRP in the North West province
BA
RB
ER
TO
N
Ownership Life of mine Location
100% 20 yearsNew Consort Mine
Sheba MineFairview Mine
National roads
Mining licence
Number of employees: 1,826
Number of contractors: 422
BA
RB
ER
TO
N T
AIL
ING
S
RET
REA
TM
EN
T P
LA
NT
(BT
RP)
100% 15 yearsNew Consort Mine
Sheba MineFairview Mine
National roads
Mining licence
EV
AN
DER
TA
ILIN
GS
RET
REA
TM
EN
T P
LA
NT
(ET
RP)
100% 16 years
Secunda
Kinross
Leandra
Elikhulu
Evander 7 shaft
Rolspruit
Evander South
Poplar
Evander 8 shaft
ETRP
National roads
Mining licence
PH
OEN
IX P
LA
TIN
UM
100% 28 years
N4
Buffelspoort dam
Hartbeespoort dam
Bapong
Buffelsfontein dams
Middelkraal dam
Elandskraal dumpsand pits
g
Mooinooi
IFM
Kroondal dump
Xstrata Kroondal Mine
National roads
Mining licence
EV
AN
DER
MIN
ES
Secunda
Kinross
Leandra
Elikhulu
Evander 7 shaft
Rolspruit
Evander South
Poplar
Evander 8 shaft
ETRP
National roads
Mining licence
100% 16 years
Number of employees: 56
Number of contractors: 38
Number of employees: 2,415
Number of contractors: 570
Number of employees: 12
Number of contractors: 7
Number of employees: 3
Number of contractors: 58
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9 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
Description
Located in a greenstone belt, this is a low
cost, high grade operation comprising three
mines: Fairview, Sheba and New Consort
and a recently commissioned tailings
retreatment plant (BTRP).
Mining Charter rating: 3
MINERAL RESERVES (Moz)MINERAL RESOURCES (Moz)
Measured Indicated Inferred Proved Probable
0.5
0.1
0.4
0.6
0.1
0.4
0.1
10.4
1.0
9.4
Resources and Reserves
Resources: 9.0Mt @ 10.7g/t (3.0Moz)
Reserves: 4.3Mt @ 10.1g/t (1.4Moz)
Exploration: Ongoing
Cash cost: USD840oz
Operational statistics
Production (tonnes milled): 260,749
Produced (oz/annum): 81,493
Capacity: 95,000oz of Au per annum
Tonnage (capacity): 300,000
Headgrade: 10.0g/t – 11.0g/t
Plant feed grade: 10.7g/t
Sustainable capital per annum: ZAR115 million
Acquired: 74% from Metorex 2007: remaining
26% from Shanduka 2009
Located at Barberton Mines, the
R320 million gold tailings retreatment
plant commenced construction in April
2012, was completed on schedule and
within budget, and achieved its inaugural
gold pour in June 2013.
Mining Charter rating: 3
Resources: 20.4Mt @ 1.3g/t (0.9Moz)
Reserves: 13.4Mt @ 1.5g/t (0.6Moz)
Exploration: Ongoing
Cash cost: USD480oz
Production (tonnes milled): 971,627
Produced (oz/annum): 24,283
Capacity: 25,000oz of Au per annum
Tonnage (capacity): 1.2 million
Headgrade: 1.4g/t
Plant feed grade: 1.4g/t
Sustainable capital per annum: ZAR2 million
Developed: Steady-state production commenced in 2013
A tailings retreatment project which will
exploit historically generated gold tailings
deposited in the Kinross tailings storage
facility and surface sources.
Mining Charter rating: 3
Resources: 205.3Mt @ 0.3g/t (1.9Moz)
Reserves: 38.1Mt @ 0.3g/t (0.4Moz)
Exploration: Ongoing
Cash cost: USD688oz
Production (tonnes milled): 647,167
Produced (oz/annum): 6,523
Capacity: 10,000oz of Au per annum
Tonnage (capacity): 2.4 million
Headgrade: Tailings: 0.32g/t
Surface feedstock: 1.0g/t – 1.75g/t
Plant feed grade: 0.5g/t
Sustainable capital per annum: ZAR2 million
Developed: Steady-state production commenced in 2015
Phoenix is a tailings plant which extracts
platinum group metals from chrome tailings.
Mining Charter rating: 3
Resources: 6.0Mt @ 3.1g/t (0.6Moz)
Reserves: 4.8Mt @ 3.2g/t (0.5Moz)
Exploration: Ongoing
Cash cost: USD578oz
Production (tonnes milled): 262,119
Produced (oz/annum): 10,245
Capacity: 12,000oz of PGEs per annum
Tonnage (capacity): 240,000
Headgrade: 3.7g/t
Plant feed grade: 3.3g/t
Sustainable capital per annum: ZAR1 million
Developed: Steady-state production commenced in 2012
31.9
20.5
2.2
9.2
Gold GoldPGEs PGEs
Located in the Witwatersrand basin,
current operations comprise No. 8 Shaft,
several potential development projects
– Poplar, Evander South, Rolspruit and
Elikhulu (a surface tailings retreatment
project), the Kinross metallurgical
processing plant and tailings storage facility.
Mining Charter rating: 3
Resources: 83.5Mt @ 9.7g/t (25.9Moz)
Reserves: 28.8Mt @ 8.5g/t (7.9Moz)
Exploration: Ongoing
Cash cost: USD1,291oz
Production (tonnes milled): 648,209
Produced (oz/annum): 63,558
Capacity: 95,000oz of Au per annum
Tonnage (capacity): 655,000
Headgrade: 5.0g/t – 7.5g/t (includes
development waste tonnes)
Plant feed grade: 3.2g/t
Sustainable capital per annum: ZAR140 million
Acquired: 100% from Harmony in March 2013
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10 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
STAKEHOLDERS
PROFITABLE
GROWTH
SUSTAINABLE
• Mineral tenure secured
• Compliance with all relevant
South African labour legislation
• Compliance with MPRDA,
Mining Charter and
implementation of social and
labour plans
• Proactive, strong
relationships with regulators,
organised labour and
communities
• Mineral Resource
Gold 31.9Moz, PGEs 0.6Moz
• Organic growth projects:
Evander Shaft 8 – 26 level,
Fairview Mine – MRC
orebody
• Brownfi eld projects:
Elikhulu, Evander South, Poplar,
Rolspruit
• Accretive acquisitions
• Mineral Reserve
Gold 10.4Moz, PGEs 0.5Moz
• Cash-generative
• Attractive dividend
• Continual low cash cost
gold production
• Life of mine (LOM)
– years:
Barberton Mines – 20
Evander Mines – 16
Phoenix Platinum – 28
BTRP – 15
ETRP – 16
• High grade/low cost
producer
Barberton Mines: 10.9
Evander Mines: 4.6
Phoenix Platinum: 3.3
(Headgrade – g/t)
• Attributable profi t
• Earnings per share
Pan African Resources has an exceptional asset base and attractive growth
opportunities, in both established projects and brownfi eld exploration prospects.
Strategy in this regard is based on global best practice in mineral resource
management (MRM) to aggressively explore and develop projects that will become
next generation long-term business units.
This strategy includes:
• Improving the conversion of mineral resources to mineral reserves by accessing, developing and
exploiting underground orebodies and surface assets
• Unlocking the value of major organic projects
• Identifying new expansion opportunities to sustain growth.
GROUP STRATEGY
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11 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
The evolution of a project from initial testing to commissioning can take 12 to 18 months or longer, and
involves a series of study stages to reach investment approval and implementation.
We distinguish the group from our peers by having a clear focus on growth and only mining resources
that must be profi table in all parts of the price cycle, in order to deliver long-term economic value to
Pan African Resources. The graph below demonstrates the group’s mineral assets within the value chain
and how value is released through projects such as the BTRP and ETRP.
EXPLORATIONDEVELOPMENT
PROJECT
PROJECT COMMISSIONING
DESK TOP STUDY
DISCOVERY
PR
OJE
CT
VA
LU
E
MINE PRODUCTIONMINE CONSTRUCTION
Mineral Resources
Mineral ReservesBarberton Mines
Evander 8 Shaft
Phoenix Platinum
Evander 7 Shaft No.3 Decline
Elikhulu
Rolspruit
Evander South
Poplar
BTRPReconnaissance
Inferred
Measured
Probable
Proved
Project life cycle of mineral assets at Pan African Resources
Indicated
ETRP
FEASIBILITY STUDY
HIGHLIGHTS
Exploration drilling at Barberton Mines, confi rming the down dip extension of the high grade
11 Block of the main reef complex (MRC) orebody by a further 170 metres. Annual increase in
Barberton Mines’ mineral reserves by 236,162 ounces
Positive results of the ETRP, feasibility study undertaken on the viability of constructing “Elikhulu”
Internal technical team has been assigned to assess the merits of progressing the Evander South
brownfi eld project to the level of a feasibility study
The Sheba and New Consort tailings dams will provide potential future sources of tailings and
will support the increased BTRP life of operation to 15 years (2014: 12 years)
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12 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
GROUP MINERAL RESOURCES AND
MINERAL RESERVES
The mineral resources and mineral reserves underpin the enterprise value of Pan African Resources, and the
group’s position on the mineral resources and mineral reserves is presented below.
GOLDGroup Mineral Resources
The total mineral resources for the group decreased from 33.5 million ounces (Moz) in June 2014 to 31.9Moz
in June 2015 – a gross annual decrease of 1.6Moz, or 4.8%. Of this variance, a decrease of 1.9Moz can be
attributed to Evander Mines and an increase of 0.3Moz to Barberton Mines.
As at 30 June 2015
Contained gold
Category
Tonnes
million
Grade
g/t kg Moz
Mineral Resources Measured 6.5 10.35 67,471 2.2
Indicated 273.7 2.33 637,457 20.5
Inferred 38.6 7.43 286,990 9.2
Pan African Resources Total 318.8 3.11 991,918 31.9
The 0.3Moz positive variance in contained gold at Barberton Mines was a result of adding new mineral
resources from the extension of the MRC orebody on Fairview Mine.
The total decrease in mineral resources can be attributed to a lower gold price and infl ationary cost drivers
in the reporting of the 2015 mineral resources.
Group Mineral Reserves
Pan African Resources’ mineral reserves increased from 10.1Moz in June 2014 to 10.4Moz in June 2015 – a
gross annual increase of 0.3Moz, or 3.0%.The 0.3Moz increase can be attributed to Barberton Mines.
As at 30 June 2015
Contained gold
Category
Tonnes
million
Grade
g/t kg Moz
Mineral Reserves Proved 3.9 7.27 28,474 1.0
Probable 81.0 3.62 293,478 9.4
Pan African Resources Total 84.9 3.79 321,952 10.4
The total increase in the mineral reserves can be attributed to the conversion of mineral resources at
Barberton Mines, the extension of MRC orebody at Fairview Mine.
MIN
ER
AL RESOURCES
(4.8%)
GROUP – GOLD 2015
MIN
ERAL RESERVES
3.0%
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13 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
PGEsGroup Mineral Resources
The group’s total mineral resource PGEs did not change materially for the year under review.
As at 30 June 2015
Contained PGEs
Category
Tonnes
million
Grade
g/t kg Moz
Mineral Resources Measured 1.6 2.46 3,879 0.1
Indicated 3.2 3.66 11,574 0.4
Inferred 1.2 2.90 3,446 0.1
Pan African Resources Total 6.0 3.14 18,899 0.6
Group Mineral Reserves
Pan African Resources’ mineral reserves PGEs decreased from 0.52Moz in June 2014 to 0.50Moz in June 2015
– a gross annual decrease of 20,000oz PGEs or 3.9 %. This was attributed to the re-mining of the Buffelsfontein
tailings dam.
As at 30 June 2015
Contained PGEs
Category
Tonnes
million
Grade
g/t kg Moz
Mineral Reserves Proved 1.6 2.46 3,879 0.1
Probable 3.2 3.56 11,574 0.4
Pan African Resources Total 4.8 3.20 15,453 0.5
GROUP – PGEs 2015
MIN
ERAL RESERVES
(3.9%)
MIN
ER
AL RESOURCES
0%
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14 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
The operations’ robust life of mine plans support the group business plans. Current exploration drilling as well as accessing and
developing the orebody were aggressively maintained during the year. The strategy of converting mineral resources to mineral
reserves was progressed by moving organic projects further up the mining value chain towards commissioning. The tables below
refl ect the progress of near-mine growth projects that have contributed ounces to the mineral resources for the year.
Exploring the orebody: exploration drilling
Operation Total metres
Number of
boreholes
Average
channel
width
cm
Number of
intersections
above
cut-off
Average
grade
g/t
Total
expenditure
Rm
Barberton Mines 15,491 157 130 72 19.79 8,5
Evander Mines 632 12 132 8 16.3 0,6
Phoenix Platinum – – – – – –
Highlights
Exploration drilling projects at Barberton Mines yielded positive results, confi rming the down dip extension of the high grade
11 Block of the MRC orebody by a further 170 metres. This extension to the MRC orebody resulted in an annual increase in
Barberton Mines’ mineral reserves by 236,162 ounces, thereby extending the life of mine of Barberton Mines to 20 years.
The Fairview MRC orebody has been the primary gold contributor towards gold produced at Barberton Mines. This orebody is an
epigenetic hydrothermal lode-gold deposit with a strike length that ranges between 70m and 120m and also extending to depth.
Gold mineralisation is associated with arsenopyrite and pyrite with an average reserve grade of 35g/t has been declared for the
MRC. The mineralised widths range between 7m and 15m.
Recent borehole results of the 11 Block are detailed below:
Borehole number
Channel width
cm
Grade
g/t
Bh 5940 687 53.30
Bh 5816 691 120.03
Bh 5849 1,626 50.22
Bh 5864 1,383 43.82
GROUP ORGANIC GROWTH
MRC orebody at Fairview Mine
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15 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
Accessing the orebody: on-reef development
Operation
Total on-reef
development
metres
Average
grade
g/t
Barberton Mines 1,041 5.01
Evander Mines 528 22.72
Phoenix Platinum – –
Developing the orebody: capital ore reserve projects – Barberton Mines
Project
2015
metres
2014
metres
2013
metres
Potential
resource
target
oz
Sheba – pillar development 824 351 317 23,599
Sheba – Edwin Bray to Thomas and Joe’s Luck area 5 171 102 13,246
Fairview – 11 Level Royal Reef (Equipping) – – 17,000
Fairview – 1# one reserve opening 84 154 179 14,821
Fairview – 3 Shaft deepening 26 – 228 1,600
Fairview – (64 – 68) Level 447 295 601 840,704
New Consort – (33 – 45) PC 258 193 252 10,000
New Consort – MMR pillar development – 173 129 new target
New Consort – 3 Shaft 327 253 – 900
Royal Sheba 165 – – 206,750
Sheba Western Cross 295 71 – 30,022
Capital ore reserve projects: Evander Mines
Project
2015
metres
2014
metres
2013
metres
Potential
resource
target
oz
2 Decline 24 – 25 Level 904 685 5541,200,000
25 A block ventilation 10 925 124
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BARBERTON MINES
HIGHLIGHTS
• Increased gold mineral reserves by 236,162 ounces, resulting in the extension of the life of mine to
20 years
• Remained one of the lowest cost producers in the South African gold industry
• BTRP continued to perform well – 80,100 tonnes per month at a recovered grade of 0.8g/t
Barberton Mines consists of three mines: Fairview,
Sheba and New Consort, and now the BTRP.
Fairview produces 50% of Barberton Mines’ gold production with Sheba and New Consort
producing 30% and 20%, respectively. Operating three mines continues to provide fl exibility and
versatility in terms of resource allocation.
The mix of high grade ore from the mines is planned monthly to maintain the targeted grade/
tonnage profi le and gold production, giving Barberton Mines the advantage of managing cash fl ows
from an early stage in the mining process. The operation has a proven track record of consistently
delivering a solid performance, driven to a large extent by an embedded culture of cost control.
The mining methods used are an underground semi-mechanised up-dip cut and fi ll and up-dip
room and stick. An estimated 16%–18% of gold is recovered by sweeping and vamping contractors
focusing on worked-out areas and mining high grade pillars. Gold is extracted using the BIOX®
gold extraction process, an environmentally friendly process which uses bacteria to release gold
from the sulphide ore.
Gold was originally discovered in the Barberton area in 1886 and comprises the sediments
and metavolcanics within the Barberton Greenstone Belt. Barberton Mines has therefore been
mined for over a century with current production practices now embedded. Given the aged mine
infrastructure, the operations undergo ongoing maintenance and refurbishment.
LOOKING AHEAD
• Achieving and maintaining production targets
• Achieving planned capex projects to establish new ore reserves
• Exploring new retreatment projects to extend the life of the BTRP and possible additional gold from
other sources
• Continuing to maintain costs
CHALLENGES
• Four DMR section 54 safety stoppage instructions halted production for a total of six days
• An oil contamination in the BIOX® plant negatively impacted production
• Production tonnes below targets
16 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
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17 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
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18 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON MINES
REGIONAL GEOLOGICAL SETTINGThe mineralisation at Barberton Mines is classifi ed as Achaean epigenetic hydrothermal lode gold deposits
within a granite greenstone terrain. The distribution and localisation of these orebodies in the Barberton
Greenstone Belt (BGB) can be largely attributed to the combined infl uence of thermal metamorphism and
structural deformation. The BGB has produced approximately 11Moz of gold since the fi rst discovery in the
early 1880s. Barberton Mines has produced more than 75% of the total production from the BGB.
GENESIS OF THE ORE IN BARBERTONMetamorphic devolatisation of the mafi c and ultra-mafi c Onverwacht lava at the transition from greenschist
to amphibolite facies triggers the process by which fl uid is released. These low-salinity fl uids, which transport
gold as a reduced sulphur complex containing H2O, CO
2 and H
2S, are released, form mineral crystal structures
and can transport gold in solution to favourable depositional sites. It is calculated that a lava volume of ten
cubic kilometres is suffi cient to have produced all the known gold mineralisation in the BGB. The Onverwacht
Group consists of approximately four thousand eight hundred cubic kilometres of potential parent material
lava. The stability fi elds of most of the common sulphides in the Barberton Mines ore (pyrite, arsenopyrite and
pyrrhotite) indicate that the gold complex in the transport fl uid is Au(HS)2.
To facilitate metal deposition from the hydrothermal fl uid, the pressure, temperature or chemical conditions
need to change. Most greenstone gold deposits form as a result of the mineralised fl uid coming into contact
with an iron-bearing host rock. The Barberton Mines host lithologies are not high in iron content, so the ore
deposition occurred due to a drop in fl uid pressure. Pressure shadows, which form during dilating, faulting
and folding, create low-pressure zones, effectively sucking the fl uids into these spaces and releasing pressure.
When pressure is released, H2S (the ligand that makes gold soluble) is driven off, resulting in gold precipitation.
The Barberton ores are thus mineralised shears with gold occluded in sulphide minerals. The sulphides often
occur as massive assemblages in the shear structure. Lower ore grade disseminations of sulphide minerals in
the wall rock form as a result of the alteration process during fl uid fl ow. A late stage of gold mineralisation
occurred when quartz veins formed in brittle fractures. These quartz veins often contain free gold in visible
clusters.
SWAZILAND20km0Scale
N4
Nelspruit
Barberton
Piggs PeakBulembu
Kaapmuiden
Malelane
International border
BTRP
New Consort Mine
Sheba Mine
Fairview Mine
LEGENDMining licenceProspecting licenceNational roadRegional roadRailwayBarberton Greenstone Belt
LOCATIONBarberton Mines is situated
in the Magisterial District
of Barberton, Mpumalanga,
Republic of South Africa,
some 370km east of
Johannesburg and 47km
south-east of Nelspruit.
The geographic location of
Barberton Mines is set out in
the map alongside. Barberton
Mines comprises Fairview
Mine, Sheba Mine, Consort
Mine and BTRP.
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19 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BullionA B
G H
BTRP
Lilly Fault
X+
40,0
00
X+
45,0
00
X+
50,0
00
Y-15,000Y-10,000Y-5,000
Margaret, Mamba and Eureka
Fairview slimes dam
Barberton Mines
Barberton Mines ® Metallurgical PlantBIOX
Sheba slimes dams
0 2km
Infrastructure
Main roadTownShaft
Mine Authorisation Boundary
New Order Prospecting Area
Nelspruit SuiteKaap Vallei TonaliteOnverwacht GroupJameson Schist BeltMoodies GroupFig Tree GroupZwartkoppies FormationFault
Geology
LEGEND
N
L
M
K
Sheba Fault
Ulundi Syncline
Barbrook Fault
Thomas and Joe’s Luck
Florence
and Devonian
To Nelspruit
New Consort slimes dam
Sheba Mine
Fairview Mine
Royal Sheba Mine
Clutha Mine
Eagles Nest Mine
To Kaapmuiden
Eureka Syncline
New Consort Mine
Geological setting (sections are illustrated on the map along the mines to depict the mineralised geological structures)
GEOLOGICAL/RESOURCE ESTIMATION METHODOLOGYThe resource was classifi ed according to guidelines compliant with the South African Code for Reporting of
Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC code, 2007).
Geological modelling
The grade and the structure in the ore shoots are highly erratic in nature, and most of the data for evaluating
resource blocks is derived from development adjacent to the mining blocks and from the position of the
present mining areas. The continuity of grade values within the ore shoots is derived primarily from short-
range statistical projections, based on experience that has been gained from historic mining of the orebody
and from the study of its tectonic structure.
The tectonic structure and orebody geometry has been modelled using the Lynx orebody modelling system.
This system allows the three-dimensional structure of the mineralised volume to be viewed graphically.
This is used as a tool for visualising grade continuity and is an aid for mine planning.
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20 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
Resource estimation
For both diamond-cored drill hole and underground sampling, a minimum sampling width of 230cm is used in
the case of mechanical mining, and 100cm for conventional scraper-type stoping. Where the reef width is less
than this value, hangingwall and footwall samples are included.
Measured reserve blocks are generally 20m on strike and 10m in the dip direction. Where blocks are defi ned
adjacent to a development end only, the grade and true width of the reef in the block are estimated by
calculating the arithmetic mean or ‘stretch average’ of the samples along the development end. If the sample
spacing is at the standard 3m, the block value is derived by calculating the average value of the samples. If the
sample interval is variable, the block is assigned the length-weighted arithmetic mean of the strip averages. If
the resource block is surrounded by sampling, either by previous stope sampling or development sampling, the
block is assigned values based on the mean of the surrounding sample stretches. In each case, one mean value
is determined for each channel sampling section fi rst and the means are then averaged.
Exploration drill hole values are weighted by the inverse of the distance from the sampling to the centre of
indicated and inferred blocks.
Where an individual sample value is greater than 100g/t, the grade is capped at 100g/t. It has been found
historically that if sample values over 100g/t are capped, these abnormally high sample grade values will not
lead to over-valuation of the mean value of the stretch samples, which are used to assign values to nearby
resource blocks.
MINING RIGHTS The mineral rights pertaining to Barberton Mines were issued by the Department of Mineral Resources in
terms of Item 7 of Schedule II of the Minerals and Petroleum Resources Development Act, 2002 (No. 28 of
2002) (MPRDA).
Mineral rights to Barberton Mines comprise three separate mining rights for the three different mining
operations. All three operations’ old order rights were converted to the sole and exclusive right to mine on
28 April 2011. The description of the mining area of all these mines is situated in the Mpumalanga Magisterial
District of Barberton and the commodity is gold. All three of these mining rights will continue to be in force
for a period of 10 years, ending on 27 April 2021.
Mine name Mining licence Mining area Area (ha) Expiry date
New Consort
Mine
MP 30/5/1/2/2/190
MR
Portions of the farms Dublin
302JU, Tinto 300JU, Segalla 306JU,
Whitwick 301JU and Barberton
Nature Reserve 964JU
2,520.81 27 April 2021
Fairview Mine MP 30/5/1/2/2/191
MR
Portions of the farms Sheba 940JU,
Worral 352JU, Hayward 310JU,
Bramber East 314JU and Bickenhall
346JU
3,033.86 27 April 2021
Sheba Mine MP 30/5/1/2/2/189
MR
Portions of the farms Camelot
320JU, Sheba 940JU and Sheba
Siding 939JU
1,705.06 27 April 2021
Mining method: Barberton has continued with the application of semi-mechanised cut and fi ll mining method.
BARBERTON MINES continued
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21 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
FAIRVIEW MINE
Surface
Fairview Mine
K L
23 Haulage
Fairview 1
Inclin
e
Fairv
iew 2 In
cline
Fairvi
ew 3
Incl
ine
MR
C O
rebo
dy
MRT
Orebo
dy
ZK
Orebody
Wagon Road
Orebody
Hope O
rebody
Com
mitm
ent
Ore
body
11 Level Adit
60 - 62 Level: Mining
64 - 68 Level: Le Roux & MRC Exploration Drilling
54 Level:
Stoping
+1 000m
MSL
-1 000m
MRC Shaft
RossiterStoping
0 500m
LEGEND
Mined-out areas
Envelope of potential mineralisation
Dykes
Shafts
Tunnels
Geology at Fairview Mine
The Fairview Mine orebody is an epigenetic hydrothermal lodegold deposit. Three distinct types of
mineralisation occur in the mine:
• Refractory sulphidic ore, which constitutes the bulk of the ore, is hosted in the greywacke and shale
sequence of the Fig Tree Group. The mineralisation is found in close association with an anastamosing shear
system that often parallels the stratigraphy. Auriferous pyrite and arsenopyrite mineralisation is confi ned to
ribbon-like shoots within the shear system and as disseminations. The shears are often defi ned by quartz-
carbonate veining, and the host rock can be sericitised and carbonated on either side of the shear.
• A coarse clastic unit of the Fig Tree Group hosts a series of hangingwall bodies. The unit consists of thick-
bedded to massive greywacke, grading into arenite with interbedded granule stone layers. Two quartz-
porphyry dykes and two dolerite dykes intrude the host rock sediments. Although the mineralised fractures
persist for up to 500m long, payable gold values are confi ned to several discrete ribbon-like payshoots.
Blue-black quartz veins and quartz-carbonate veins and stock-work are recognised in the hangingwall area.
The contacts and texture of the veins suggest a dilation fracture fi ll origin, rather than replacement origin.
Refractory gold-quartz-carbonate-sulphide ore occurs as disseminated to massive pyrite and arsenopyrite
mineralisation. The age relationship between the gold mineralisation and the quartz-porphyry dykes
suggests that the Hope Reef is marginally older and the Le Roux Reef is marginally younger than the quartz-
GEOLOGYThe Fairview Mine area
straddles the contact between
the Moodies Group to the
north (Eureka Syncline) and
the Fig Tree Group greywacke
and shale to the south (Ulundi
Syncline). The contact is
marked by the presence of the
Sheba Fault. The two synclines
are re-folded, back-to-back
isoclines that dip steeply
to the south. Tight isoclinal,
thrust fault-related anticlines
of Onverwacht Group schist
(Zwartkoppie Formation) occur
within the greywacke.
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22 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
porphyry dykes. The quartz-porphyry dyke that
intrudes into the Hope Reef mineralisation has
been dated at 3,050 million years.
• Quartz veins, containing free milling gold, occur
in the Moodies Group in the footwall of the
Sheba Fault. The blue-gray quartz veins fi ll near-
vertical cross-cutting fractures in the siliceous,
brittle quartzite units. Gold mineralisation
generally occurs within the vein, but may
penetrate the adjacent host rock. Only minor
pyrite and arsenopyrite is associated with this
ore type.
The deepest intersection on a Fairview orebody is
at a depth of 1,600m below the adit elevation. The
orebody is open at depth.
BARBERTON MINES continued
Mineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Measured 1.86 8.08 15.02 0.48
Indicated 1.23 23.96 29.53 0.95
Inferred 1.00 21.78 21.74 0.70
Fairview Mine Total 4.09 16.21 66.30 2.13
Mineral Reserves modifying factors
As at 30 June 2015
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
Fairview Mine 400,000 3.99 399 100 4 100.0 90.5
Mineral Reserves
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Proved 0.60 10.21 6.13 0.20
Probable 1.22 21.03 25.75 0.83
Fairview Mine Total 1.82 17.47 31.88 1.02
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2,000,000
1,800,000 45
40
35
30
25
20
15
5
10
00.00 5.00 10.00 20.0015.00 30.0025.00 35.00 40.00 45.00 50.00
50
FAIRVIEW GRADE/TONNAGE CURVE
Tonnage Grade
Cut-off grade (g/t)
Tonn
es
Gra
de (
g/t)
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23 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
SHEBA MINE
Vantage – Goldfields Mining Area Royal Sheba MineSheba Mine
Proposed future
development
M N
Sheba ZK Shaft
27 Sub
-Incli
ne Sha
ft
Thomas and Joe’s Luck Development
ZK
Orebody
Into
mbi
Ore
body
Royal Sheba
Shaft
Bonanza Mine
ZK
Ore
body
F
G
H
0 500m
LEGEND
Mined-out areas
Envelope of potential mineralisation
Dykes
Shafts
Tunnels
Geology at Sheba Mine
GEOLOGYThe Sheba section area straddles the contact
between the Moodies Group to the north
(Eureka Syncline) and the Fig Tree Group
greywacke and shale to the south (Ulundi Syncline).
The contact is marked by the presence of the
Sheba Fault. The two synclines are re-folded,
back-to-back isoclines that dip steeply to the
south. Tight isoclinal, thrust fault-related anticlines
of Onverwacht Group schist (Zwartkoppie
Formation) occur within the greywacke.
SHEBA GRADE/TONNAGE CURVE
200,000
150,000
100,000
50,000
0
300,000
250,00045
40
35
30
25
20
15
5
10
00.00 5.00 10.00 20.0015.00 30.0025.00 35.00 40.00 45.00 50.00
50
Tonn
es
Gra
de (
g/t)
Cut-off grade (g/t)
Tonnage Grade
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24 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
Mineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Measured 1.80 5.98 10.76 0.35
Indicated 1.20 5.32 6.37 0.20
Inferred 1.19 4.65 5.51 0.18
Sheba Mine Total 4.18 5.41 22.65 0.73
Mineral Reserves modifying factors
As at 30 June 2015
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
Sheba Mine 400,000 4.49 449 100 5 100 92.75
Mineral Reserves
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Proved 1.19 4.72 5.60 0.18
Probable 1.18 4.36 5.13 0.17
Sheba Mine Total 2.36 4.54 10.73 0.35
BARBERTON MINES continued
The Sheba orebody is an epigenetic hydrothermal lodegold deposit. Three distinct types of mineralisation
occur in the mine:
• Refractory sulphidic ore (MRC Section), which constitutes the bulk of the ore, is hosted in the greywacke
and shale sequence of the Fig Tree Group. The mineralisation is found in close association with a shear
system in the immediate hangingwall of greenschist anticlines of the Zwartkoppie Formation. Auriferous
pyrite and arsenopyrite mineralisation occurs as massive replacement veins within the shear system and
as disseminations.
• In the Zwartkoppie Section, visible gold and disseminated pyrite in the greenschist is the prominent
mineralisation, in association with shear and fracture hosted smoky and white quartz veins.
• The Royal Sheba mineralisation occurs within the Sheba Fault mylonite and shear zone in the footwall of a banded
chert-carbonate shale unit of the Fig Tree Group.
The deepest orebody intersection on Sheba is 1,200m below shaft collar elevation. The orebody is open at
depth.
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25 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
CONSORT MINE
50 Level
Sub-Incline21Sub-Incline 22
PC
Shaf
t
10 Level
MM
R In
clin
e Sh
aft
22 Level
Prospective
Paytrends
37 Level
45 Level
40 Level
PC Adit3 Shaft
7 Shaft
MMR Payshoot
MMR
Proposed Future
Development
B/G
3 Shaft Payshoot
37 Level: Capital Development
MMR Exploration Drilling
37 Sub-incline Shaft
LEGEND
Mined-out areasEnvelope of Potential MineralisationPegmatitesShafts
+ +++ ++
0 500m
3 Shaft Payshoot
7 Sh
aft Paysh
oot
7 Sh
aft Paysh
oot
PC Shaft Payshoot
49 Sub-Vertical Shaft
Current Stoping
Exploration Drilling
Current Stoping
Current Stoping
Current Stoping
Current Stoping
Geology at Consort Mine
GEOLOGYThe New Consort area can be divided into two distinctive synclinal structures,
termed the Three Shaft syncline and the Top Section syncline. The Shires structure,
which is a prominent north-south striking shear zone dividing these two synclines,
is intruded by a pegmatite.
The New Consort orebody is an epigenetic
hydrothermal lodegold deposit. Gold mineralisation
at the New Consort section is associated with
the contact between the underlying schist of the
Onverwacht Group and the overlying metapelite
of the Fig Tree Group. This contact is marked by
the presence of the Consort ‘bar’, a highly siliceous
banded chert. The Consort bar is thought to be a
silicifi ed mylonite occupying the contact. A series
of north-dipping tabular pegmatites, termed the
MR pegmatites, displace the south-dipping Consort
contact and the mineralised shoots. Some scheelite
mineralisation has been recorded, associated with
the pegmatites. A lenticular body of fi ne-grained
siliceous amphibolite, termed the ‘footwall lens’,
occurs on the northern limb of the Top Section
syncline and is host to the mineralisation in the
PC and MMR shoots. Mineralisation consists of
arsenopyrite and visible gold associated with
fractures in the footwall lens. The Consort bar is
host to mineralisation in the 7 Shaft, 3 Shaft and
Ivaura areas.
The deepest intersection of a New Consort
orebody is 1,450m below adit elevation. The
orebody is open at depth.
200,000
150,000
100,000
50,000
0
250,000
30
25
20
15
5
10
00.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00
35
CONSORT GRADE/TONNAGE CURVE
Tonn
es
Gra
de (
g/t)
Cut-off grade (g/t)
Tonnage Grade
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26 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
Mineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Measured 0.37 8.93 3.34 0.11
Indicated 0.22 11.33 2.47 0.08
Inferred 0.13 12.14 1.57 0.05
Consort Mine Total 0.72 10.23 7.39 0.24
Mineral Reserves modifying factors
As at 30 June 2015
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
Consort Mine 400,000 5.74 574 100 5 90 89.98
Mineral Reserves
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Proved 0.05 8.62 0.46 0.02
Probable 0.11 8.15 0.86 0.02
Consort Mine Total 0.16 8.31 1.32 0.04
BARBERTON MINES continued
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27 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BARBERTON TAILINGS RETREATMENT PROJECTMineral Resources
Barberton Tailings Retreatment Plant (BTRP) as at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Measured – – – –
Indicated 13.43 1.49 20.02 0.64
Inferred 7.01 0.98 6.85 0.22
BTRP Total 20.44 1.31 26.87 0.86
Mineral Reserves modifying factors
BTRP as at 30 June 2015
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
PRF
%
BTRP 400,000 – – – – 57.5
Mineral Reserves
BTRP as at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Proved – – – –
Probable 13.43 1.49 20.02 0.64
BTRP Total 13.43 1.49 20.02 0.64
The table below forms the keynotes to the sources of material that constitute the above mineral reserves.
Slimes dump Tonnes
Grade
g/t
Au content
kg
Ounces
oz
Fairview Bramber 1,377,974 1.65 2,271 73,017
Fairview Harper South 1,959,040 1.50 2,938 94,477
Fairview Harper North 2,868,000 1.55 4,445 142,923
Calcine Northern Segalla 405,900 4.56 1,851 59,508
Segalla 6,816,618 1.25 8,514 273,720
Total 13,427,532 1.49 20,020 643,644
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28 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
RECONCILIATION OF MINERAL RESOURCES AND MINERAL RESERVESMineral Resources reconciliation: 2014 to 2015
Gold
kg
Gold
koz
Balance as at end June 2014 117,909 3,790.9
Mined during 2014/2015 2,874 92.4
Addition 10,834 348.3
Balance as at end June 2015 125,869 4,046.8
Variance 7,960 255.9
Mineral Reserves reconciliation: 2014 to 2015
Gold
kg
Gold
koz
Balance as at June 2014 gold price R400,000 56,910 1,829.7
Mined during 2014/15 2,874 92.4
Addition 7,387 237.5
Balance as at June 2015 gold price R400,000 61,423 1,974.8
Variance 4,513 145.1
During the 2015 fi nancial year, the following signifi cant changes to resources and reserves occurred:
• Escalating cost with the resulting higher pay limit caused a loss of 212,000 tonnes and 30,600 ounces from
the total reserve
• Sheba – Development to access old boundary pillars increased the proved reserves by 00,000 tonnes at
00g/t
• Fairview – Re-blocking of the Drummond Reef from 18 to 22 level was done and this added 25,380 tonnes
at 5.90g/t
• Fairview – The MRC 11 reserve below 64 level increased from 528,470 tonnes at 32.5g/t to 707,620
tonnes at 34.3g/t, an increase of 7,096kg of gold
• Consort – Despite good drilling results and gains in the measured and indicated resources of 707kg the
rising pay limit resulted in a loss of 357kg proved and probable reserves
• The ongoing effort to re-visit old areas and capture of historical sampling and survey data of old mining areas is
allowing a continued process of vamping and remnant mining at all three Barberton Mines operations.
As a result of the changes detailed above, the Barberton Mines mineral resources inventory posted the
following changes for 2015:
• Barberton Mines mineral reserves increased by 236,161oz contained gold
• Barberton Mines mineral resources increased by 232,880oz contained gold
• Barberton Mines measured mineral resources increased by 91,968oz contained gold
• Barberton Mines indicated mineral resources increased by 242,913oz contained gold
• Barberton Mines inferred mineral resources decreased by 78,272oz contained gold.
As indicated in the table, Barberton Mines’ ore reserves as at 30 June 2014 refl ected a year-on-year depletion
by mining of 92,401oz.
BARBERTON MINES continued
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29 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
MINERAL RESOURCES TABLE: BARBERTON MINES
Operations Classifi cation
Mineral Resources 30 June 2015
tonnes g/t kg oz
Sheba Measured 1,801,200 5.98 10,764 346,069
Indicated 1,196,800 5.32 6,369 204,781
Inferred 1,185,500 4.65 5,513 177,247
Total 4,183,500 5.41 22,646 728,097
Consort Measured 374,500 8.93 3,344 107,521
Indicated 218,300 11.33 2,474 79,556
Inferred 129,500 12.14 1,572 50,542
Total 722,400 10.23 7,391 237,620
Fairview Measured 1,859,700 8.08 15,021 482,940
Indicated 1,232,400 23.96 29,533 949,512
Inferred 998,300 21.78 21,742 699,023
Total 4,090,500 16.21 66,296 2,131,475
Total mines Measured 4,035,400 7.22 29,129 936,530
Indicated 2,647,500 14.50 38,377 1,233,849
Inferred 2,313,400 12.46 28,827 926,813
Total 8,996,300 10.71 96,334 3,097,192
Slimes dumps Measured – –
Indicated 13,427,500 1.49 20,020 643,644
Inferred 7,013,000 0.98 6,854 220,375
Total 20,440,500 1.31 26,874 864,020
Surface ore Total 178,300 1.76 313 10,079
Operations Classifi cation
Mineral Resources 30 June 2015
tonnes g/t kg oz
Outside sections Measured – –
Indicated 214,300 6.19 1,327 42,664
Inferred 183,100 5.69 1,042 33,511
Total 397,400 5.96 2,369 76,176
Total Barberton Measured 4,035,400 7.22 29,129 936,530
Indicated 16,467,700 3.65 60,037 1,930,236
Inferred 9,509,500 3.86 36,724 1,180,699
Total 30,012,600 4.19 125,890 4,047,466
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30 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
MINERAL RESERVES TABLE: BARBERTON MINES
Operations Classifi cation
Mineral Reserves 30 June 2015
tonnes g/t kg oz
Sheba Proved 1,185,600 4.72 5,597 179,960
Probable 1,178,000 4.36 5,134 165,046
Total 2,363,700 4.54 10,731 345,006
Consort Proved 52,700 8.62 455 14,614
Probable 105,500 8.15 860 27,664
Total 158,200 8.31 1,315 42,278
Fairview Proved 600,300 10.21 6,131 197,108
Probable 1,224,200 21.03 25,745 827,729
Total 1,824,500 17.47 31,876 1,024,837
Total mines Proved 1,838,600 6.63 12,183 391,682
Probable 2,507,700 12.66 31,739 1,020,440
Total 4,346,400 10.11 43,992 1,412,122
Slimes dumps Probable 13,427,500 1.49 20,020 643,644
Surface ore Probable 178,300 1.76 313 10,079
Total Barberton Proved 1,838,700 6.63 12,183 391,682
Probable 16,113,600 3.23 52,072 1,674,162
Total 17,952,200 3.58 64,255 2,065,845
As at 30 June 2015, Barberton Mines reported a mineral reserve of 2,065,845oz and mineral resource of
4,047,466oz contained gold. The measured and indicated mineral resources are inclusive of those resources
modifi ed to produce the mineral reserves. Reserves are reported as mill-delivered tonnes at the contained
grade, having duly considered all modifying factors.
JD Verster, the chief surveyor at Barberton Mines, signs off mineral resources for Barberton Mines. He is a
member of the South African Council for Professional and Technical Surveyors (PLATO) (MS0014). Mr Verster
is based at Fairview Mine, GMO Building, Barberton, 1300. Mr Verster has confi rmed in writing that the
information disclosed is compliant with section 12 of the JSE Listings Requirements and Table 1 of the SAMREC
Code, 2009, and that it may be published in the form and context in which it is intended.
BARBERTON MINES continued
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31 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
TOTAL MINERAL RESOURCES AND MINERAL RESERVES FOR BARBERTON MINESMineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Measured 4.04 7.22 29.13 0.94
Indicated 16.47 3.65 60.04 1.93
Inferred 9.51 3.86 36.72 1.18
Barberton Mines Total 30.01 4.19 125.89 4.05
Mineral Reserves modifying factors
As at 30 June 2015
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
Barberton Mines 40,000 4.49 – 100 16 99.6 91.2
Mineral Reserves
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Proved 1.84 6.63 12.18 0.39
Probable 16.11 3.23 52.07 1.67
Barberton Mines Total 17.95 3.58 64.25 2.06
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32
EVANDER MINES
Evander Mines exploits the Kimberley Reef
in the Evander basin, part of the greater
Witwatersrand basin. Mining methods
employed are underground conventional
scraper mining and rail bound equipment
with some trackless mechanised
development.
With No. 8 Shaft at a depth of 2.5km, it takes the workforce approximately an hour to
reach the mining area via a lift and locomotive and two chairlifts. The rock is then hauled
along 11 conveyors from the rock face to the bottom of No. 7 Shaft, where it is hoisted
to surface. The gold is extracted at a CIL hybrid plant.
HIGHLIGHTS
• ETRP commenced in January 2015 – processing 200,000 tonnes per month at 0.31g/t
• Capital spend on ETRP was below budget
LOOKING AHEAD
• Investigating the viability of constructing ‘Elikhulu’ – a tailings retreatment plant to
treat slimes at about 12 million tonnes per annum at a headgrade of 0.28g/t
• Assessing the merits of progressing the Evander South project up the value chain
CHALLENGES
• Three DMR section 54 safety stoppage instructions halted production for a total of six days
• Underground mining operations and infrastructure constraints delayed production
turnaround – high grade mining cycle only commenced in June 2015
• Production tonnes below targets
Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
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33 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
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34 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER MINES
Exploration in this area started in 1903 with the advent of diamond drilling and progressed, intermittently,
through various major exploration phases, up to the incorporation of the fi rst mine (Winkelhaak Mine) in
1955. Since then, three other mines were brought into production – namely Leslie Mine, Braken Mine and
Kinross Mine.
Evander Mines’ mineral assets comprise a set of mineral resources that are from early prefeasibility studies to a
production mine. The current revenue streams for Evander Mines are generated from the Evander 8 Shaft and
re-mining of tailings. The principal economical horizon mined at Evander Mines is the Kimberley Reef, which
was deposited in the Witwatersrand sedimentary basin, ca 2,300 million years ago.
10km0Scale
N17
Leandra
Kinross
EvanderTrichardt
Secunda
Embalenhle
Kriel
Bethal
Evander 8
Evander South
Evander South Ext.
Poplar
Rolspruit
Poplar Ext.
E8
E7
E9
E10
E1
E3
E2 E6
E5
LEGENDMining licenceProspecting licenceNational roadRegional roadRailwayOperational shaftShaft
LOCATIONEvander Gold Mine is
located approximately
120km east-south-east from
Johannesburg in Mpumalanga.
It is close to Secunda, which
hosts the Sasol II Plant, which
exploits several coal seams in
the area.
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35 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER 8 SHAFTLocation
The Evander 8 Shaft is situated about 5km north-west of the town of Evander. It covers an area of 44km2. It
sits between Rolspruit to the north-west and 7 Shaft to the south-east. Mining occurs in the No. 2 Decline
area on the western side, at a depth of 2,100m to 2,300m below surface.
O28 55’E
O29 00’E
O29 05’E
O29 10’E
O29 15’E
O26
35’S
O26
30’S
O26
25’S
O26
20’S
Sugarbush Fault
0 4kmScale
LEGENDReef loss (Normal Fault)Reverse FaultSuboutcrop of Kimberley ReefSugarbush FaultIntermediate SuboutcropStratigraphic Dip DirectionKimberley ReefMined out area of Kimberley ReefEvander West Prospecting RightCompressional stress direction
GEOLOGYThe Evander 8 Shaft is situated
in the distal part of the Evander
Basin. The Kimberley Reef is the
only economical horizon that
is mined. The Kimberley Reef is
situated stratigraphically in the
lower part of the Turffontein
Subgroup, which is in the upper
portion of the Central Rand
Group. The Kimberley Reef
presents the distal facies of a
fl uvial placer that was deposited
by a system of braided-streams.
8 Shaft is currently mining the
western high-grade area of the
Kinross Payshoot (a payshoot
that extends for over 17km
from the south-east to the
north-west of the basin).
Geology
The reef is an oligomictic, pebbly conglomerate and comprises a composite sequence of channel-sediments
that defi ne longitudinal gravel bars and sand bars with pebbly veneers. The reef in the area strikes in an east-
west direction and dips to the north at about 10 degrees. The area is also divided by two major normal faults,
striking in an east-north-east to west-south-west direction. The reef thickness varies from a waste on contact
(WOC) up to a 50cm well-developed oligomictic conglomerate. Average reef thickness is 35cm. High gold
values in the Kimberley Reef are mostly located at the base of the unit, and are associated with the presence
of carbon and some visible gold on the footwall contact.
Mineral Resources estimation
The estimation method used for generating local grade estimates on Evander 8 Shaft is ordinary kriging (OK).
The orientations and ranges of each geozone’s semi-variogram are used to determine the kriging search
parameters, and the estimation parameters are optimised. Estimates are kriged into 30m x 30m blocks for the
measured resources, 60m x 60m blocks for indicated resources and 120m x 120m blocks for inferred resources.
The measured and indicated resource models are then tested on cmgt kriging effi ciency (KEFF) and slope of
regression (SR) and merged together with the inferred model to produce a combined kriged block model.
Underground exploration/development result
All underground borehole intersections are included in the estimation model. All new underground sampling
from stoping and development is added to update the estimation model.
Geology of Evander Mines
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36 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
Mineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Kimberley Reef Measured 1.90 17.04 32.4 1.04
Indicated 2.86 15.63 44.7 1.44
Inferred 7.50 10.58 79.4 2.55
Evander Shaft 8 a Total 12.27 12.76 156.6 5.03
Modifying factors
As at 30 June 2015
Kimberley Reef
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
Evander Shaft 8 a 400,000 9.86 1,243 126 73.5 96.4
Mineral Reserves
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Kimberley Reef Proved 2.05 7.90 16.2 0.52
Probable 3.37 7.34 28.1 0.90
Evander Shaft 8 Total 5.41 8.14 44.3 1.42
EVANDER MINES continued
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37 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
Mining rights
The mineral rights pertaining to Evander Mines were issued by the Department of Mineral Resources in terms
of Item 7 of Schedule II of the Minerals and Petroleum Resources Development Act, 2002 (No 28 of 2002)
(MPRDA) and were registered on 15 October 2010.
Mining licence
Type of
licence
Licence
number
Area
ha Expiry date Status
Evander South Prospecting MP 30/5/1/2/2/248
PR
2,551 17 October
2008
Renewal application
lodged
Evander South
Extension
Prospecting MP 30/5/1/2/2/4272
PR
11,189 19 October
2016
Renewal application
lodged
E8 Mining MP 30/5/1/2/2/126
MR
36,898 28 April 2038 Conversion
application approved
and in effect
Mining method: Evander 8 Shaft mining method is footwall development to reef horizon and then developing
on reef horizon (raise). The mining follows an upside down Christmas tree sequence to extract the reef
horizon. Old areas of the mine are also cleaned up by means of vamping activities.
0 0
24 222220
20
1818
1616
1414
1212
1010
8 8
6 6
4 4
2 2
0 2
Tonn
es (
milli
on)
Gra
de (
g/t)
4 6 8 10 12 14 16
EVANDER 8: GRADE/TONNAGE CURVE(Measured/indicated resource)
Cut-off grade (g/t)
Tonnage Grade
Life of mine plan (grade/tonnage curves)
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38 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER 7 SHAFTThe Evander 7 Shaft is located south-east of 8 Shaft (approximately 3km apart) and hoists 8 Shaft’s ore to surface. Due to the increased gold price
over the last few years, an opportunity arose to investigate the viability to reclaim ore via vamping operations at 7 Shaft. Other organic growth
projects include the 2010 payshoot at the No. 3 Decline at 7 Shaft.
Mineral Resources
As at 30 June 2015
Tonnes
million
Grade
g/t
Contained gold
Category tonnes Moz
Kimberley Reef Measured 0.06 2.75 0.2 0.005
Indicated – – – –
Inferred – – – –
Evander 7 Shaft vamping a Total 0.06 2.75 0.2 0.005
Modifying factors
As at 30 June 2015
Kimberley Reef
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
Evander 7 Shaft vamping a 85 96.4
Mineral Reserves
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Kimberley Reef Measured 0.03 3.76 0.12 0.004
Indicated – – – –
Inferred – – – –
Evander 7 Shaft vamping a Total 0.03 3.76 0.12 0.004
EVANDER MINES continued
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39 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER PROJECTSThe Evander gold assets also consist of exploration projects that are at varying stages of exploration and
development. The individual projects and level of study are summarised below and illustrated in the map below.
O28 55’E
O29 00’E
O29 05’E
O29 10’E
O26
35’S
O26
30’S
O26
25’S
O26
20’S
4km0Scale
P opla r
Evander 8
Poplar
Rolspruit
Poplar Ext.
Evander South Ext.
LEGENDShaftsOperational ShaftsMined-out areas
Mineral ResourcesMeasuredIndicatedInferred
Mineral ReservesProved and Probable
E8
E7
E10
E1
E5
E3
E9 E2
E6
Evander South
ETRP
Location of Evander projects
PROJECTS• The Rolspruit Project is at
preliminary feasibility study
(PFS) stage with a PFS by
Turgis Consulting completed
in October 2011 and updated
in April 2012. Probable
mineral reserves of 6.46Moz
contained gold have been
estimated and declared for
the Rolspruit Project
• The Evander South Project
is at PFS level. A PFS was
undertaken by SRK in 2010.
A mineral resource of
4,92Moz is declared
• The Poplar Project has a
defi nitive feasibility study (DFS)
completed in 2003, which
was updated in 2006.
Subsequent exploration
drilling was undertaken to
defi ne the mineral resource.
A mineral resource of 4.94Moz
is declared
• Evander Gold Surface Projects;
namely:
– The Elikhulu Project,
which is at PFS level,
with estimated indicated
mineral resources of
1.9Moz contained gold
– The ETRP mineral reserve
of 0.40Moz is declared
Pan African Resources (PAR) remains focused on creating shareholder value through unlocking the value of its
organic surface and brownfi elds exploration projects.
In this regard, shareholders are referred to the SENS announcement dated 12 February 2015, which announced
the successful commissioning of the ETRP and the fi rst gold poured from the ETRP in January 2015.
The total construction capital spend on the ETRP was approximately R172 million, which is substantially below
the original R200 million project budget.
The ETRP has now successfully ramped up processing to nameplate capacity of 180,000 to 200,000 tonnes
per month. Gold production from the ETRP remains on target and PAR is pleased to announce recoveries in
line with and exceeding the 42% planned recoveries.
Growth projects at Evander Mines
In light of the positive results of the ETRP, the company has decided to undertake a feasibility study on the
viability of constructing “Elikhulu”, a tailings retreatment plant which can potentially treat slimes at a processing
capacity of up to 12 million tonnes per annum at a headgrade of 0.28g/t from the Winkelhaak, Leslie and
Kinross tailings storage facilities. The total mineral resource for Elikhulu is 165Mt @ 0.28g/t (1.5Moz).
Furthermore, an internal technical team from Evander Mines has been assigned to assess the merits of
progressing the Evander South brownfi eld project to the level of a feasibility study. The Evander South Project
is a potentially attractive mining opportunity whereby the Kimberley Reef can be exploited at shallow depths,
commencing at 300m below surface.
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40 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
ROLSPRUITBackground
The Rolspruit Project is an exploration project and the orebody is a down-dip extension of the Kinross
Payshoot, currently being exploited at Evander 8 Shaft. The project is located immediately adjacent to
Evander 8 Shaft as shown on page 37. Exploration on the Rolspruit Project commenced in 1955, and by 1988 a
total of 53 boreholes had been completed by various companies, with accompanying reef defl ections.
Geology
The Rolspruit Project is the down-dip extension of the Kinross Payshoot and is in the most distal part of
the Evander Basin. The reef has an average dip of between nine and 22 degrees to the north. The Kimberley
Reef varies in thickness from 10cm to about 60cm. The conglomerate is made up of rounded, quartz clasts
supported by a quartz matrix. Mineralisation is similar to that of Evander 8 Shaft in the No. 2 Decline area. The
nature and amount of pyrite mineralisation are relative good indicators of gold grade values. Buckshot pyrite
and fl yspeck carbon are indicators of high gold values.
Mineral Resources
The mineral resource estimation was performed by ExploreMine Consultants Proprietary Limited in
April 2011. An extensive channel sampling database for the adjoining Evander 8 Shaft area and the surface
drilling data for Rolspruit formed the dataset for the resource estimation.
Macro ordinary kriging was applied to indicated resources. Sichel’s-T estimate techniques were used to classify
the inferred mineral resources. The indicated mineral resource estimation was defi ned on the Evander 8 Shaft
channel sampling dataset and subsequent geozones. The block size was estimated into 60m x 60m blocks.
EVANDER MINES continued
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41 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
Mineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Kimberley Reef Measured – – – –
Indicated 24.40 10.93 266.7 8.57
Inferred 0.94 9.17 8.6 0.28
Rolspruit a Total 25.34 10.86 275.3 8.85
Modifying factors
As at 30 June 2015
Gold
price
R/kg
Cut-off
value
g/t Au
Cut-off
value
cmg/t
Stoping
width
cm
Dilution
%
MCF
%
PRF
%
Kimberley Reef 400,000 5.59 615 110 16.5 85 96.4
Mineral Reserves
Mineral reserves declared are based on the PFS conducted by Turgis dated October 2011 (updated in April 2012).
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
kg tonnes Moz
Kimberley Reef Proved – – – –
Probable 23.36 8.6 201 6.46
Rolspruit a Total 23.36 8.6 201 6.46
Life of mine plan (grade/tonnage curves)
0 4
30 24
25
20
22
15
20
10
18
16
14
12
10
856
0 2
Tonn
es (
milli
on)
Gra
de (
g/t)
4 6 8 10 12 16 1814 20
ROLSPRUIT: GRADE/TONNAGE CURVE(Measured/indicated resource)
Cut-off grade (g/t)
Tonnage Grade
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42 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
POPLARBackground
The Poplar Project is situated in the north-western limb of the Evander Basin, west of the town of Leandra.
Exploration on the Poplar Project commenced in the mid-1950s and has been the subject of several studies.
A total of 104 boreholes were drilled in the project area, which includes 146 defl ections. A total of
46 boreholes were drilled by Harmony from 2007 to 2010.
Geology
The Kimberley Reef occurs at a depth below surface of between 500m in the west and 1,200m in the east.
The reef strikes north-south and dips nine degrees to 24 degrees to the east. The Kimberley Reef comprises
a sequence of fl uvial, channel sediments that were deposited in a braided stream environment. Deposition
of the reef was infl uenced by the footwall lithologies. The Kimberley Reef horizon has a channel width of
approximately 30cm, generally thin reef hosting high gold grades. The reef has north-east-south-west trending
payshoots, which is evident in other parts of the Evander Basin.
A series of seven major, sub-parallel and fairly evenly spaced faults traverse the property. These are all
orientated in a roughly north-northeast–south-southwest direction. Throws of these faults vary between 50m
and 400m.
Mineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Kimberley Reef Measured – – – –
Indicated 13.56 7.99 108.3 3.48
Inferred 6.49 6.97 45.3 1.46
Poplara Total 20.05 7.66 153.6 4.94
Life of mine plan (grade/tonnage curves)
EVANDER MINES continued
0 4
30 18
25
20
15
10
16
14
12
10
8
5 6
0 2
Tonn
es (
milli
on)
Gra
de (
g/t)
4 6 8 10 12 14 16
POPLAR: GRADE/TONNAGE CURVE(Measured/indicated resource)
Cut-off grade (g/t)
Tonnage Grade
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43 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER SOUTHBackground
The Evander South Project is in the south-western limb of the Evander Basin. It is located directly west of
Evander 9 Shaft and is south of the Poplar Project. A total of 116 boreholes were drilled in the project area,
and 475 defl ections. A total of 43 boreholes were drilled by Harmony during 2008 to 2009.
Geology
The Kimberley Reef occurs at a depth of between 300m in the west and 1,200m in the east below surface.
The reef strikes north-south and dips six degrees to 19 degrees. The Kimberley Reef comprises a sequence
of fl uvial channel sediments that were deposited in a braided stream environment. Deposition of the reef was
infl uenced by the footwall lithologies. The high-grade Kimberley Reef is associated with carbon and is a narrow,
small pebble, clast-supported and well-packed oligomictic conglomerate. Carbon was present in several of the
borehole Kimberley Reef intercepts drilled in the project area.
Mineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Kimberley Reef Measured – – – –
Indicated 10.00 9.46 94.6 3.04
Inferred 8.78 6.64 58.5 1.88
Evander South Total 18.78 8.14 152.9 4.92
Life of mine plan (grade/tonnage curves)
0 0
25 24
20 2022
15
18
10
1614121086
5 42
0 2
Tonn
es (
milli
on)
Gra
de (
g/t)
4 6 8 10 12 14 16
EVANDER SOUTH PROJECT: GRADE/ TONNAGE CURVE(Measured/indicated resource)
Cut-off grade (g/t)
Tonnage Grade
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44 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
ELIKHULUBackground
Elikhulu is a surface dump retreatment project that exploits tailings dams which were generated from historical
mining activities at the Kinross, Winkelhaak and Leslie mines. The tailings dams in Evander were drilled and
sampled. A total of 158 holes were drilled on a 200m x 200m grid. Samples were composited at intervals of
1.5m and subjected to metallurgical test-work.
Mineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Measured – – – –
Indicated 205.28 0.29 59.6 1.92
Inferred – – – –
Libra Total 205.28 0.29 59.6 1.92
Mineral Reserves
A feasibility study was undertaken to re-treat only the Kinross Dam resource, ETRP. Modifying factors were
applied to convert the mineral resource to a probable reserve. The milling capacity at the Kinross Plant
contributed to a favourable economic modifying factor, resulting in favourable processing and capital costs, thus
allowing the conversion to be stated.
As at 30 June 2015
ETRP (Kinross dams) Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Proved – – – –
Probable 38.14 0.32 12.3 0.40
ETRP a Total 38.14 0.32 12.3 0.40
EVANDER MINES continued
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45 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
EVANDER 7 SHAFT NO. 3 DECLINE – 2010 PAYSHOOTBackground
The No. 3 Decline – 2010 Payshoot area is situated north-east of Evander 7 Shaft. It is at a depth of between
1,600m and 2,450m below surface. The No. 3 Decline was extensively mined in the past up to 20 Level
(1,900m BS). The area is accessible by a decline system from 15 Level down to 21 Level. The 2010 Payshoot
runs parallel to the Kinross Payshoot, east of the No. 3 Decline. Surface boreholes in this area indicate possible
payable reef.
Geology
The Kimberley Reef strikes in an east-west direction and dips at 28 degrees to the north. The Foot Wall Sill
Break is an intrusive (sill) that is a reverse fault, which displaces the reef horizon 90m. The Kimberley Reef
at Evander 7 Shaft is a well-developed oligomictic conglomerate up to one metre thick, averaging about
37cm. The Kimberley Reef in this area is very similar to that of 8 Shaft. High gold values in the Kimberley Reef
are mostly located at the base of the unit and are associated with the presence of carbon and some visible
gold on the footwall contact.
Mineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Kimberley Reef Measured 0.52 11.05 5.7 0.18
Indicated 0.34 10.03 3.4 0.11
Inferred 5.41 10.85 58.7 1.89
7 Shaft No. 3 Decline
and 2010 Payshoot Total 6.27 10.82 67.8 2.18
Life of mine plan (grade/tonnage curves)
0 0
8 22
20
618
4
16
14
12
10
8
624
2
0 2
Tonn
es (
milli
on)
Gra
de (
g/t)
4 6 8 10 12 1614 18
EVANDER 7: GRADE/TONNAGE CURVE(Measured/indicated resource)
Cut-off grade (g/t)
Tonnage Grade
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46 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
RECONCILIATION OF MINERAL RESOURCES AND MINERAL RESERVES
Mineral resource reconciliation: 2014 to 2015
Gold
kg
Gold
koz
Balance as at June 2014 925,106 29,743
Mined during 2014/15 (3,409) (110)
Addition
Balance as at end June 2015 866,028 27,843
Variance (55,669) (1,790)
Mineral reserve reconciliation: 2014 to 2015
Gold
kg
Gold
koz
Balance as at June 2014 257,019 8,262
Mined during 2014/15 (2,186) (70)
Addition
Balance as at June 2015 257,697 8,285
Variance 2,863 93
During the 2015 fi nancial year, the following signifi cant changes to resources occurred:
• Evander 8 Shaft had a reduction in ounces due to the increase in cut-off grade, a decrease of 1,147,161oz
• Poplar had a reduction in ounces due to the increase in cut-off grade, a decrease of 414,649oz.
During the 2015 fi nancial year, the following signifi cant changes to reserves occurred:
• Evander 8 Shaft reserve increased by 48,000oz. That was due to the additional reserves from the Lubbe
Payshoot.
As a result of the changed detailed above, Evander’s mineral resource inventory posted the following changes
for 2015:
• Total Evander mineral reserve increased by 23,000oz contained gold
• Total Evander mineral resource decreased by 1,900,000oz contained gold
• Measured mineral resource decreased by 77,000oz contained gold
• Indicated mineral resource decreased by 516,000oz contained gold
• Inferred mineral resource decreased by 1,307,000oz contained gold.
EVANDER MINES continued
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47 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
MINERAL RESOURCES TABLE: EVANDER MINES
Mineral Resources 30 June 2015
Operations Classifi cation tonnes g/t kg oz
Evander 8 Shaft Measured 1,904,354 17.04 32,450 1,043,000
Indicated 2,861,334 15.63 44,712 1,438,000
Inferred 7,501,004 10.58 79,397 2,553,000
Total 12,266,692 12. 76 156,559 5,034,000
Evander surface sources Measured – – – –
Indicated – – – –
Inferred – – – –
Total – – – –
Evander 7 Shaft (vamping) Measured 57,765 2.75 159 5,000
Indicated – – – –
Inferred – – – _
Total 57,765 2.75 159 5,000
Evander 7 Shaft No. 3 Decline Measured 518,669 11.05 5,733 184,000
Indicated 340,912 10.03 3,419 110,000
Inferred 5,405,496 10.85 58,658 1,886,000
Total 6,265,077 10.82 67,810 2,180,000
Elikhulu (ETRP) Measured – – – –
Indicated 205,280,945 0.29 59,559 1,915,000
Inferred – – – –
Total 205,280,945 0.29 59,559 1,915,000
Rolspruit Measured – – – –
Indicated 24,399,050 10.93 266,672 8,574,000
Inferred 937,985 9.17 8,599 276,000
Total 25,337,035 10.86 275,271 8,850,000
Poplar Measured – – – –
Indicated 13,560,874 7.99 108,310 3,482,000
Inferred 6,494,122 6.97 45,292 1,456,000
Total 20,054,996 7.66 153,602 4,938,000
Evander South Measured – – – –
Indicated 9,997,892 9.46 94,617 3,042,000
Inferred 8,781,847 6.64 58,320 1,875,000
Total 18,779,739 8.14 152,937 4,917,000
Total Evander Measured 2,480,788 15.46 38,342 1,232,000
Indicated 257,181,497 2.25 577,420 18,565,000
Inferred 29,120,454 8.59 250,266 8,046,000
Total 288,782,739 3.00 866,028 27,843,000
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48 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
MINERAL RESERVES TABLE: EVANDER MINES
Mineral resource 30 June 2015
Operations Classifi cation tonnes g/t kg oz
Evander 8 Shaft Proved 2,046,842 7.90 16,175 520,000
Probable 3,366,549 8.34 28,076 903,000
Total 5,413,391 8.17 44,251 1,423,000
Evander surface sources Proved
Probable – – – –
Total
Evander 7 Shaft (vamping) Proved 30,800 3.76 116 4,000
Probable – – – –
Total 30,800 3.76 116 4,000
ETRP Proved – – – –
Probable 38,142,803 0.32 12,324 396,000,
Total 38,142,803 0.32 12,324 396,000
Rolspruit Proved – – – –
Probable 23,362,565 8.60 201,006 6,462,000
Total 23,362,595 8.60 201,006 6,462,000
Total Proved 2,077,642 7.84 16,291 524,000
Probable 64,871,917 3.72 241,406 7,761,000
Total 66,949,558 3.85 257,697 8,285,000
As at 30 June 2015, Evander reported a mineral reserve of 8,285,000oz and mineral resource of 27,843,000oz contained gold. The measured and
indicated mineral resources are inclusive of those resources modifi ed to produce the mineral reserves. Reserves are reported as mill-delivered
tonnes at the headgrade, having duly considered all modifying factors.
The competent person for Evander Mines, Mr Barry Naicker, the group mineral resource manager, signs off the mineral resources for
Evander. He is a member of the South African Council for Scientifi c Professions (400234/10). Mr Naicker has a Master’s degree in mineral
resource management from Witwatersrand University and a Bachelor of Science (Honours) in economic geology. Mr Naicker has 14 years of
experience in economic geology and mineral resource management. Mr Naicker is based at First Floor, The Firs, cnr Cradock Avenue and Biermann
Avenue, Rosebank, 2196, Gauteng.
EVANDER MINES continued
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49 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
TOTAL MINERAL RESOURCES AND MINERAL RESERVES FOR EVANDER MINESTotal Mineral Resources
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Kimberley Reef Measured 2.48 15.46 38.3 1.23
Indicated 257.18 2.25 577.4 18.57
Inferred 29.12 8.59 250.3 8.05
Evander Mines Total 288.78 3.00 866.0 27.84
Total Mineral Reserves
As at 30 June 2015
Category
Tonnes
million
Grade
g/t
Contained gold
tonnes Moz
Proved 2.08 7.84 16.3 0.53
Probable 64.9 3.72 241.4 7.76
Evander Mines a Total 67.0 3.85 257.7 8.29
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PHOENIX PLATINUM
Phoenix Platinum recovers PGEs from
CTRP located on IFL’s Lesedi Mine. The
Buffelsfontein, Elandskraal and Kroondal
mineral resources originate from the
mining of chromitite seams from the
Bushveld Igneous Complex.
The Bushveld Igneous Complex is host to the world’s largest deposits of PGEs. The
operation is expected to produce PGEs over a life of mine of 28 years. It has a total
process capacity of 240kt per annum.
The PGEs are extracted in the fl otation plant and the concentrate is delivered to
Lonmin’s Mooinooi Smelter for toll extraction.
The CTRP was designed to treat sulphide material from the Lesedi Mine, which is
supplied to Phoenix Platinum with sulphide-rich material, as a current arising.
HIGHLIGHTS
• 44% increase in PGE ounces sold
• Increase in PGE recoveries from 29% to 44%
• Capital spend on ETRP was below budget
LOOKING AHEAD
• Optimising mineral reserves from Elandskraal and Kroondal (122.534oz)
• Continuing to contain costs
CHALLENGES
• Declining commodity prices
• International Ferro Metals business rescue proceedings
50 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
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51 Pan African Resources
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52 Pan African Resources
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HISTORY OF PHOENIXPan African Resources acquired 100% of Phoenix Platinum from Metorex Limited (Metorex) on 21 May 2009.
Phoenix Platinum recovers PGM 6E from old tailings and current arisings through mineral rights agreements
from the IFM Lesedi Mine dams and current arisings, the Elandskraal dumps and pits, and the Kroondal dump.
These tailings are covered through various agreements with Phoenix Platinum to be the feed source for a
240ktpa chrome tailings retreatment plant (CTRP).
Buffelsfontein (IFM Lesedi Mine dams and current arisings)
IFM operates a chromite ore benefi ciation plant that feeds a number of chromite furnaces on its property
to produce ferrochrome. The chromite ore benefi ciation plant rejects gangue minerals in the form of tailings
(current arisings) to the tailings dams. The bulk mass of the tailings is made up of pyroxenites, some unrecovered
chromite and PGM 6E minerals associated with pyroxenites. Historically, IFM mined mainly the MG1 seam, with
lesser amounts of MG2 included. The PGM 4Es mineral rights in the IFM tailings dams, and current arisings
situated on the farm Buffelsfontein, were acquired in 2008.
The IFM tailings dams were constructed in 2006 and, to date, have been used for the deposition of tailings
material from the IFM chrome benefi ciation plant.
Elandskraal
The tailings in the pits was created by historic mining of the MG1 and MG2 orebodies by Samancor and Hernic
mining operations. In 2003, Minco purchased the operations from Hernic and started chromite reclamation
from the dumps. Phoenix Platinum has an agreement with Minco to process the Elandskraal dumps and pits.
Kroondal
Metorex acquired the Kroondal resource from the joint venture between GB Mining and Exploration
SA Proprietary Limited and Aquarius Platinum SA Proprietary Limited in 2008. This dump was generated by
tailings from the mining of the LG6 chromitite layer of the Bushveld Igneous Complex at the Xstrata Kroondal
operations.
PHOENIX PLATINUM
10km0Scale
N4
Rustenburg
Mooinooi
Bapong
Kroondal
Elandskraal
Buffelsfontein
Magaliesberg ProtectedNatural Environment
LEGENDFarm boundaryNational roadRegional roadRailway
LOCATIONLocated in the North-West
Province of South Africa.
Situated in the town of
Mooinooi, on the lease area
of the IFM Lesedi Mine.
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53 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
PILANESBERG ALKALINE COMPLEX
P
Vaalkopdam
R565
N4
15km0
Atlanta
RustenburgPretoria
Western Limb
Northern Limb
Middelburg
Nylstroom
Groblersdal
Dullstroom
Polokwane (Pietersburg)
EasternLimb
Mokopane(Potgietersrus)
Northam
Saulspoort
Heystekrand
Mogwase
Ledig
Sun City
Beestekraal
Mooinooi
Rustenburg
Bapong
Brits
RUSTENBURG LAYERED SUITE
MERENSKY REEF
UG2
UG1
MG4
MG3
MG2
MG1
LG7
LG6 & LG6A
LG5
Upper Group
MiddleGroup
Lower Group
PYROXENITE MARKER
MAIN ZONE
UPPER CRITICAL ZONE
LOWER CRITICAL ZONE
LOWER ZONE
MARGINAL ZONE
UPPER ZONE LEGEND
Chromitite
Anorthosite
Norite
Pyroxenite
LEGENDLebowa Granite SuiteUpper ZoneMain ZoneMerensky ReefUG2 ReefUpper Critical ZoneLower Critical ZoneLower ZoneMarginal ZoneTransvaal SupergroupPilanesberg Alkaline Complex FaultTownFarm boundariesRoadRailwayRiverTailings and current arisings sources
xel
pm
oC
dle
vh
su
B
der
ey
aL
gru
bn
ets
uR
eti
uS
N4
AngloPlat(Union)
AngloPla
t
(Aman
delbu
lt)
ImpalaLease
Barplats
Lonmin
(Marikana)
AquariusAngloPlat
(Marikana)
AngloPlat
(Rustenburg)
Aquarius
AngloPlat
(Kroondal)
AngloPlat
(Bafokeng-
Rasimone))
NorthamPlatinum
AngloPlat
(Pandora)Barplats
(Crocodile River)
Kroondal dump
Buffelsfontein dams and current arisings
Elandskraal dumps and pits
R
Geology of Western Limb – Bushveld Igneous Complex
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54 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
REGIONAL GEOLOGYThe Buffelsfontein, Elandskraal and Kroondal mineral resources originate from the mining of the Bushveld
Igneous Complex. The chromitite layers in the Western Limb of the Bushveld Igneous Complex are confi ned
to the critical zone of the layered complex and are grouped from the bottom upwards, into lower, middle and
upper groups. The middle group consists of four chromitite seams of which the sixth seam – numbered from
bottom (MG1) to top (MG4) – is being mined. The mining that took place at Elandskraal and is still taking place
at Buffelsfontein (IFM Lesedi Mine) are the MG1 and MG2 seams. The MG1 seam sits in the Lower Critical
Zone of the Bushveld Igneous Complex, whereas MG2 is in the Upper Critical Zone of the Bushveld Igneous
Complex. Both MG1 and MG2 dip at approximately 12 degrees to the north.
Deposit types
Mineralisation at Phoenix is classifi ed as tailings dumps. The tailings from the various chromite mines are
deposited onto a dump, which is then re-treated by Phoenix Platinum to recover the PGMs 6E.
MINERAL RESOURCE ESTIMATION METHODOLOGYBuffelsfontein
Quantities
Dumps: The Buffelsfontein dumps were surveyed to obtain the in situ volumes. The tailings dams occupied
321,067.5m3. A bulk density of 1.54t/m3 was determined in a laboratory from dump samples, and this was used
in the tonnage calculation for declaration of the resource. Tailings from the CTRP were added as an inferred
resource; this was calculated using plant fl ow meters, densitometers and daily assays.
Current arisings: Current arisings tonnages were determined using a 15% extraction of the mineral reserves of
Lesedi Mine. The inferred resource was determined using a 15% extraction of the inferred resources for Lesedi Mine.
Grade
Resource determination was done by drilling the resource dams on a grid pattern of 8m x 8m where possible.
A composite sample of the drill hole was created and then analysed for the PGM 4E content at a minerals
analysis laboratory. An inverse distance estimation technique was used to derive the mineral resource grade.
Elandskraal
Quantities
Resource volumes were determined by drilling the resource dumps, dams and pits on a grid pattern where
possible. The grids at Elandskraal were less straight than at Buffelsfontein, due to the roughness of the terrain
that made up the resource. Information from this drilling process was modelled three-dimensionally by
mineral resource specialists to obtain accurate resource tonnage determinations, which would form part of a
SAMREC-compliant resource.
Grade
The information from the sampling process was analysed and the average grade for the dam and pits was
determined, using an inverse distance estimation technique.
Kroondal
As at June 2013, the Kroondal resource was split into three areas:
• Farm Kroondal 304JQ dump
• Wonderkop non-processed dumps
• Wonderkop processed dump.
Quantities
A volumetric survey was conducted on farm Kroondal 304JQ and on the Wonderkop non-processed dumps.
Due to vegetation on Wonderkop processed dump, a volumetric survey in 2013 was not undertaken, and the
resource was thus reclassifi ed as an indicated resource. A bulk density of 2.04 t/m was used.
Grade
The area consists of the LG6 tailings dump at the dormant Kroondal Mine. A detailed competent person’s
report was completed in 2003 by Craton Resources CC, and the grade determined was 2g/t PGE 6E.
PHOENIX PLATINUM continued
GEOLOGYThe Elandskraal and
Buffelsfontein mineral
resources are situated
5km east of Mooinooi,
north of the N4 highway
that connects Pretoria and
Rustenburg in North West.
The sites are accessed via the
old Rustenburg/Pretoria road,
which runs parallel to the
N4 highway. The Kroondal
mineral resource is 7km east
of Rustenburg on the old
Rustenburg/Pretoria Road.
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55 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
BUFFELSFONTEINLocation
Buffelsfontein dumps and current arisings are located on the farm Buffelsfontein 465JQ, portion 11 constituted by portions 20, 21, 22, 23 and 24,
and portion 12. The satellite image below depicts the dumps and the decline shaft used to extract the current arisings.
Mineral Resources
As at 30 June 2015
Category
Tonnes
kt
Grade
g/t
Contained PGEs
kg oz
Buffelsfontein tailings dams Measured 118 3.66 432 13,903
Indicated – – –
Inferred 785 2.60 2,040 65,575
Buffelsfontein current arisings Indicated 3,054 3.66 11,178 359,369
Inferred 362 3.66 1,326 42,627
Buffelsfontein a Total 4,319 3.47 14,976 481,474
Mineral Reserves
As at 30 June 2015
Category
Tonnes
kt
Grade
g/t
Contained PGEs
kg oz
Buffelsfontein tailings dams Proved 118 3.66 432 13,903
Probable – – – –
Buffelsfontein current arisings Proved – – – –
Probable 3,054 3.66 11,178 359,369
Buffelsfontein Total 3,172 3.66 11,610 373,272
Mineral Resources and Reserves reconciliation
The mineral reserves decreased from 395,211oz PGEs to 373,272oz PGMs. This decrease can be attributed to the re-mining of the Buffelsfontein
tailings dam.
Landsat image of Buffelsfontein
• Exploration boreholes
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56 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
ELANDSKRAALLocation
Elandskraal dumps, dams and pits are located on the farm Buffelsfontein 465JQ, portion 155, as shown below.
PHOENIX PLATINUM continued
Mineral Resources
As at 30 June 2015
Category
Tonnes
kt
Grade
g/t
Contained PGEs
kg oz
Measured 1,149 2.45 2,815 90,506
Indicated 145 2.04 296 9,510
Inferred 42 2.00 84 2,701
Elandskraal a Total 1,336 2.39 3,193 102,717
Mineral Reserves
As at 30 June 2015
Category
Tonnes
kt
Grade
g/t
Contained PGEs
kg oz
Proved 1,149 2.45 2,815 90,506
Probable 145 2.04 296 9,510
Elandskraal Total 1,294 2.40 3,111 100,016
Mineral Resources reconciliation
No material movements occurred in the reporting year.
Landsat image of Elandskraal
• Exploration boreholes
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57 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
KROONDALLocation
The Kroondal resource is located in two areas – the farm Kroondal 304GQ and the Xstrata
Wonderkop plant in Marikana.
1,160m AMSL
1 2Section E - G
70
1,160m AMSL
7 8 9 10 11
Section M - J
70
1,160m AMSL
16 15 14 13 12
Section P - N
70
1,160m AMSL
3456
Section A - L
70
27 26 25 24 23 22
Section B - S
70
1,160m AMSL
17 18 19 20 21
Section R - Q
70
1,160m AMSL
E
A
M
P
G
B
L
J
N
Q
S
R
Secti
on lin
es
32,900 33,000 33,100 33,200
44,9
00
45,0
00
45,1
00 >3g/t
1 - 3g/t
<1g/t
0 100m
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58 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
Mineral Resources
As at 30 June 2015
Category
Tonnes
kt
Grade
g/t
Contained PGEs
kg oz
Measured 316 2.00 632 20,319
Indicated 50 2.00 100 3,215
Inferred – – – –
Kroondal a Total 366 2.00 732 23,534
Mineral Reserves
As at 30 June 2015
Category
Tonnes
kt
Grade
g/t
Contained PGEs
kg oz
Proved 316 2.00 632 20,319
Probable 50 2.00 100 3,215
Kroondal Total 366 4.00 732 23,534
TOTAL MINERAL RESOURCE AND MINERAL RESERVE – PHOENIX PLATINUMTotal Mineral Resources – PGEs
As at 30 June 2015
Contained PGEs
Category
Tonnes
million
Grade
g/t kg Moz
Mineral Resources Measured 1.6 2.46 3,879 0.1
Indicated 3.2 3.66 11,574 0.4
Inferred 1.2 2.90 3,446 0.1
Pan African Resources Total 6.0 3.14 18,902 0.6
Total Mineral Reserves – PGEs
As at 30 June 2015
Contained PGEs
Category
Tonnes
million
Grade
g/t kg Moz
Mineral Reserves Proved 1.6 2.46 3,879 0.1
Probable 3.2 3.56 11,574 0.4
Pan African Resources Total 4.8 3.20 15,453 0.5
As at 30 June 2015, Phoenix Platinum reported mineral reserves of 0,5Moz PGE and mineral resources of 0,6Moz PGEs. The measured and
indicated mineral resources are inclusive of those resources modifi ed to produce the mineral reserves.
PHOENIX PLATINUM continued
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59 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
GLOSSARY
Adit A mining tunnel that is mined from the side of a mountain or mining pit
Capital expenditure (capex) Expenditure on tangible assets – includes ongoing and project capital. In particular, capex
includes spending on ongoing development, abnormal expenditure, shaft projects and major
projects, and covers both sustaining and growing operations
Cash cost Cash costs include direct operating costs for all mining and processing sites, but are exclusive of
royalties, production taxes, depreciation and rehabilitation, as well as corporate administration,
capital and exploration costs
Chrome tailings Discards from a chrome washing plant be it historical (tailings dams) or new (current arisings)
Chrome Tailings Retreatment Programme This is a fl otation plant constructed to recover PGMs from chrome tailings
Contained gold The total gold content (tonnes multiplied by grade) of the material being described
Current arisings The live tailings discarded by the chrome operators’ washing plant and fed directly to a CTRP.
Cut-off grade Minimum grade at which a unit of ore will be mined to achieve the desired economic outcome
Decline Underground evacuation at an inclined angle – normally a shaft
Depletion Decrease in quantity of ore in a deposit or property due to extraction or production
Development Process of accessing an orebody through shafts or tunnelling in underground mining
Development capital Capital expenditure incurred in development of the workings areas and creation of additional
mineral resources to support the mining operations
Gold produced Refi ned gold derived from the mining process, measured in ounces or kilograms in saleable
form
Grade Quantity of gold contained in a unit weight of gold-bearing material, generally expressed in
ounces per short ton of ore (oz/t), or grams per metric tonne (g/t)
Greenstone Belt Geological zone of variably metamorphosed matic to ultramatic volcanic sequences with
associated sedimentary rocks that occur within Archaean and Proterozoic cratons between
granite and gneiss
IFL International Ferro Metals (SA) Proprietary Limited, Phoenix Platinum concluded a formal
CTRP agreement with IFL and operates from its Lesedi Mine
In situ Original or unbroken condition of the reef before mining
Indicated resource A mineral resource reported as an in situ mineralisation estimate – intermediate level of
geoscientifi c knowledge and confi dence
Inferred resource A mineral resource reported as an in situ mineralisation estimate – low level of geoscientifi c
knowledge and confi dence
JORC Australian code for reporting exploration results, mineral resources and mineral reserves
JSE JSE Limited
Measured resource A mineral resource reported as an in situ mineralisation estimate – high level of geoscientifi c
knowledge and confi dence
Metallurgical recovery factor A measure of the effi ciency in extracting gold from the ore deposit
Milling A process of reducing broken ore to a size at which concentrating can be undertaken
Mine call factor The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered
mineral product after processing with the amount estimated in the ore based on sampling
Mining Charter Charter to facilitate the sustainable transformation and development of the South African
mining industry
Outside section Sections that are not part of the current operating mines, but are part of the contained mineral
rights area
Pay limit The grade of a unit of ore at which revenue from the recovered mineral content of the ore
is equal to the total cash cost, including ore reserve development and stay-in-business capital
Probable reserve A mineral reserve reported as a mineable production estimate – lower level of geoscientifi c
knowledge and confi dence
Proved reserve A mineral reserve reported as a mineable production estimate – higher level of geoscientifi c
knowledge and confi dence
Recovered grade The recovered mineral content per unit of ore treated
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60 Pan African Resources
Mineral Resources and Mineral Reserves Report 2015
Reef A gold-bearing sedimentary horizon, normally a conglomerate band that may contain economic
levels of gold
Reserve base A mineral reserve reported as a mineable production estimate – the probable and proved
reserve
SAMREC South African code for reporting exploration results mineral resources and mineral reserves
Tailings Finely ground rock of low residual value from which valuable minerals have been extracted
Discarded tailings stored in dam facilities.
Ton Imperial = 2,000 pounds (1,016kg). Referred to as a short ton.
Tonne (t) Metric = 1,000 kilograms
Underground mining Mining activities occurring below the earth’s surface
Vamping tons Reef tons emanating from cleaning out of old underground working places
ABBREVIATIONSBarberton Mines Barberton Mines Proprietary Limited
BFS Bankable feasibility study
BIOX® Biological oxidation
CIL Carbon-in-leach
CTRP Chromite Tailings Retreatment Plant
DMR Department of Mineral Resources: South African Governmental department (previously DME)
EE Employment equity
Evander Mines Evander Gold Mines Proprietary Limited
LOM Life of mine
MPRDA The South African Mineral and Petroleum Resources Development Act, 28 of 2002
MRM Mineral resource management
PAR, Pan African or the company Pan African Resources
PGE’s Platinum group elements – platinum, palladium, rhodium and gold
PGM Platinum group minerals/metals
Phoenix Platinum Phoenix Platinum Mining Proprietary Limited – The Chromite Tailings Retreatment Plant in the
North-West province, South Africa
RC Reverse circulation: drilling method
SAMREC The South African Resource Committee
SAMREC Code The South African code for the reporting of exploration results, mineral resources and mineral
reserves
Shanduka Shanduka Gold Proprietary Limited, a 100% subsidiary of Shanduka Resources Proprietary
Limited
GLOSSARY continued
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COMPANY INFORMATION
CORPORATE OFFICEThe Firs Offi ce Building
1st Floor, Offi ce 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Offi ce: + 27 (0) 11 243 2900
Facsimile: + 27 (0) 11 880 1240
REGISTERED OFFICESuite 31
Second Floor
107 Cheapside
London, EC2V 6DN
United Kingdom
Offi ce: + 44 (0) 20 7796 8644
Facsimile: + 44 (0) 20 7796 8645
DIRECTORSCobus Loots
Pan African Resources
Chief executive offi cer
Offi ce: + 27 (0) 11 243 2900
Deon Louw
Pan African Resources
Financial director
Offi ce: + 27 (0) 11 243 2900
COMPANY SECRETARYPhil Dexter
St James’s Corporate Services Limited
Offi ce: + 44 (0) 20 7796 8644
JSE SPONSORSholto Simpson
One Capital
Offi ce: + 27 (0) 11 550 5009
NOMINATED ADVISER AND JOINT BROKERJohn Prior/Paul Gillam/James Black
Numis Securities Limited
Offi ce: +44 (0) 20 7260 1000
JOINT BROKERMatthew Armitt/Ross Allister
Peel Hunt LLP
Offi ce: +44 (0) 20 7418 8900
PUBLIC AND INVESTOR RELATIONS SAJulian Gwillim
Aprio Strategic Communications
Offi ce: +27 (0)11 880 0037
PUBLIC AND INVESTOR RELATIONS UKDaniel Thöle
Bell Pottinger PR
Offi ce: + 44 (0) 20 3772 2500
www.panafricanresources.com
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www.panafricanresources.com
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