Name of the Project
Mintails Mogale Gold tailings storage facilities (TSFs).

Location
Near Krugersdorp, to the west of Johannesburg, in Gauteng, South Africa.

Project Owner/s
Pan African Resources.

Project Description
The Mintails Mogale Gold TSFs comprise various individual dams containing a probable mineral reserve of 123.6-million tonnes of remineable material at a head grade of 0.29 g/t for an estimated content of 1.14-million ounces of gold.

The Mogale Gold project has the potential to increase Pan African’s gold production profile over the coming years.

Remining the Mogale Gold TSFs is expected to add about 50 000 oz/y of production over its 13-year life-of-mine (LoM). The project entails low unit-cost hydromining, with low project-execution risk, at 800 000 t a month using a carbon-in-leach (CIL) plant, similar to Pan African’s Elikhulu operation that processes 1.2-million tonnes a month, with up to 900 000 t a month achievable without negatively affecting performance.

The addition of Mintails’ Soweto Cluster resource has the potential to extend the LoM from 13 years to 21 years and further increase yearly gold production.

Potential Job Creation
The estimated 500 employees that are needed for the construction of the project have largely been sourced locally.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 9.5% real discount rate, of $65-million and a real ungeared internal rate of return of 20.1%. Construction capital payback is estimated within 3.5 years after commissioning.

Capital Expenditure
Construction capital expenditure (capex) is estimated at $161.3-million.

Planned Start/End Date
Construction started in July 2023. Steady-state production is forecast for December 2024, while  commissioning of the project is expected in the latter half of 2025.

Latest Developments
Excellent progress has reportedly been made at the project and capital expenditure of the Mogale project is in line with budgets.

Foundations for seven of the nine carbon-in-leach tanks are now in place and the construction of the tower crane needed for the retreatment process has started.

Environmental rehabilitation is under way, with a clean-up of historical spillages and pipelines, wetlands remediation and removal of alien vegetation.

Key Contracts, Suppliers and Consultants
DRA Projects (definitive feasibility study); and SGS Bateman (EPCM).

Contact Details for Project Information
Pan African Resources, tel + 27 11 243 2900 or email info@paf.co.za.