Name of the Project
Elikhulu tailings plant project.

Location
The project is located at the Evander mine, in Mpumalanga, South Africa.

Client
Pan African Resources.

Project Description
The Elikhulu tailings plant project entails establishing facilities and infrastructure at Evander Mines to retreat gold plant tailings at one-million tonnes a month. This is in addition to the existing production from the Evander Tailings Retreatment Plant (ETRP), which will be incorporated into the Elikhulu plant and processes about 200 000 t/m of tailings. The enlarged Elikhulu plant is forecast to process throughput of 1.2-million tonnes a month and is expected to produce about 70 000 oz/y of gold.

The Elikhulu project will use a conventional carbon-in-leach circuit with a proprietary pre-oxidation process.

Over the Elikhulu project’s 14-year life-of-mine, it is expected to produce 674 000 oz of gold, with a value of about R11.5-billion at a gold price of R550 000/kg, inject R5.3-billion into the South African economy for sourced goods and services, and contribute an estimated R1.3-billion to the South African revenue authorities in taxes and royalties.

Potential Job Creation Elikhulu´s construction phase employed as many as 1 769 people and will directly employ more than 350 permanent employees and contractors during its life-of-mine.

Net Present Value/Internal Rate of Return
The net present value is R1.1-billion and the internal rate of return is 23.1%, with a payback period of less than four years, based on an assumed gold price of $1 180/oz.

Value
The Elikhulu project is estimated at R1.74-billion.

Duration
The Elikhulu project broke ground in August 2017.

Latest Developments
The inaugural gold pour was held in August 2018, with ramp-up to full production expected by the end of September 2018.

The incorporation of the ETRP into Elikhulu is on track and scheduled for completion in December 2018.

Key Contracts and Suppliers
DRA Projects (feasibility study and detailed design and construction supervision service) and Fraser Alexander (remining contract).

On Budget and on Time?
The Elikhulu project was completed within budget and ahead of schedule.

Contact Details for Project Information
Pan African Resources project lead Jonathan Irons, tel +27 11 243 2900 or fax +27 11 880 1240.
Aprio Strategic Communications Public and Investor Relations on behalf of Pan African Resources, Julian Gwillim, tel +27 11 880 0037.