Pan African Resources (OTCQX: PAFRY) has announced the successful commissioning of its Mogale Tailings Retreatment (MTR) operation, marking a significant advancement in its production capabilities. The MTR operation commenced in early October 2024, culminating in an inaugural gold pour at the plant’s smelting facility. This project, valued at US$135.1 million, was not only completed ahead of schedule but also under budget, showcasing the company’s efficiency and commitment to operational excellence.
The construction of the MTR facility was completed in just 14 months, employing over 1,600 workers during this period. Remarkably, the project achieved completion with zero lost-time injuries, reflecting a strong emphasis on safety and worker welfare throughout the construction phase.
The MTR operation is expected to ramp up to a steady-state production level of 800 kilotons per month (ktpm) by December 2024. This increase in production is projected to enhance Pan African’s overall output by more than 50,000 ounces per year, with an all-in sustaining cost (AISC) estimated at approximately US$1,000 per ounce.
The life-of-mine for the MTR operation is anticipated to exceed 20 years, particularly when factoring in reserves from the adjacent Soweto tailings cluster. This long-term perspective underscores Pan African’s strategic approach to sustainable mining practices.
Cobus Loots, CEO of Pan African Resources, expressed pride in the successful commissioning of the MTR operation, stating, “Pan African has established an enviable track record in executing world-class tailings retreatment projects. We are pleased to announce the successful commissioning of the MTR operation in October 2024, ahead of schedule and below budget.” His comments highlight the company’s commitment to operational efficiency and its focus on enhancing production capabilities while maintaining safety standards.
The successful commissioning of the MTR operation is expected to contribute positively to local economies by providing job opportunities and stimulating economic activity in the region. As global demand for gold remains robust, Pan African is well-positioned to capitalize on this trend through its enhanced production capacity.
Furthermore, with ongoing advancements in technology and sustainable mining practices, Pan African aims to minimize environmental impacts while maximizing resource recovery from tailings. The MTR project exemplifies this commitment by transforming previously discarded materials into valuable resources.
The commissioning of the Mogale Tailings Retreatment operation represents a significant milestone for Pan African Resources, reinforcing its commitment in sustainable mining practices.
