01 June 2026
Soweto Cluster gold study on way as Pan African hits gold production top spot
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Soweto Cluster gold study on way as Pan African hits gold production top spot
This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.
The Soweto Cluster definitive feasibility study (DFS) is on track for completion this month, Pan African Resources reported on Monday, June 1 in an operational update ahead of its financial year ending June 30 to highlight its 40% increase in annual gold production to 275 000 oz.
The option to construct a new 600 000-t-a-month tailings processing facility next to the London- and Johannesburg-listed company's thriving Mogale Tailings Retreatment (MTR) surface gold operations west of Johannesburg, is the focus of the Soweto Cluster DFS.
Envisaged is a standalone operation producing 30 000 oz to 35 000 oz a year for 15 years.
Pan African, headed by CEO Cobus Loots, has achieved improved safety statistics as it continues to concentrate on safety initiatives amid MTR contributing to a 14% higher half-year gold output of 147 000 oz, along with excellent production performances from the Elikhulu Tailings Retreatment Plant as well as the Evander and Barberton underground operations, which offset slower-than-anticipated ramp-up of production from Tennant Mines, the company's acquisition in Australia.
Initiatives to expand annual gold output to 300 000 oz and beyond are under way.
On the cost front, all-in sustaining cost (AISC) guidance of $1 870/oz is expected against a background of record operating cash flow generation, projected cash of $220-million, and domestic medium-term notes of $49.7-million being the only outstanding debt.
AISC estimates allow for above inflation increases for reagents, electricity and other key inputs at a time when the company has never been in a stronger financial position, atop major growth investments and dividends to shareholders.
Further production increases are expected in later years, primarily driven by production growth from Tennant and MTR, where environmental approvals and processing of water use licence applications for the Soweto Cluster are in progress. The required pipeline servitudes from the Soweto Cluster tailings storage facilities to the Mogale plant site are being concluded and the study for the expansion of the Mogale plant to include a separate circuit for the treatment of hard rock ore from local surface material is being finalised. The treatment of the hard rock ore could potentially further increase the Mogale complex's production by 20 000 oz to 30 000 oz a year.
"The strong operational performance from our South African portfolio offset the slower-than-anticipated production ramp-up from Tennant. In the next financial year, we expect a much-improved performance from Tennant, with a full year of mining from the high-grade White Devil deposit, and a clear pathway to growing Australian gold production to 100 000 oz/y in the next three years. In addition, we anticipate increasing gold production from MTR in the next years, with the Soweto Cluster DFS now nearing completion," Loots stated in a release to Mining Weekly.
"Despite inflationary pressures, costs remain well managed. We're in a fortunate position in South Africa, with stable grid power to all our operations, and an accelerating renewable energy portfolio being rolled out to maintain this supply and reduce the impact of Eskom cost increases.
"In Australia, while diesel price increases have had an impact on production costs, sufficient storage facilities are now in place to minimise risks associated with potential fuel supply shortages. We are also investing in a large renewable energy solution for Tennant Mines, which will include battery storage, to reduce future operating costs.
"The conclusion of the Emmerson transaction will see Pan African consolidate the Tennant Creek goldfield, and we look forward to welcom...
This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.
The Soweto Cluster definitive feasibility study (DFS) is on track for completion this month, Pan African Resources reported on Monday, June 1 in an operational update ahead of its financial year ending June 30 to highlight its 40% increase in annual gold production to 275 000 oz.
The option to construct a new 600 000-t-a-month tailings processing facility next to the London- and Johannesburg-listed company's thriving Mogale Tailings Retreatment (MTR) surface gold operations west of Johannesburg, is the focus of the Soweto Cluster DFS.
Envisaged is a standalone operation producing 30 000 oz to 35 000 oz a year for 15 years.
Pan African, headed by CEO Cobus Loots, has achieved improved safety statistics as it continues to concentrate on safety initiatives amid MTR contributing to a 14% higher half-year gold output of 147 000 oz, along with excellent production performances from the Elikhulu Tailings Retreatment Plant as well as the Evander and Barberton underground operations, which offset slower-than-anticipated ramp-up of production from Tennant Mines, the company's acquisition in Australia.
Initiatives to expand annual gold output to 300 000 oz and beyond are under way.
On the cost front, all-in sustaining cost (AISC) guidance of $1 870/oz is expected against a background of record operating cash flow generation, projected cash of $220-million, and domestic medium-term notes of $49.7-million being the only outstanding debt.
AISC estimates allow for above inflation increases for reagents, electricity and other key inputs at a time when the company has never been in a stronger financial position, atop major growth investments and dividends to shareholders.
Further production increases are expected in later years, primarily driven by production growth from Tennant and MTR, where environmental approvals and processing of water use licence applications for the Soweto Cluster are in progress. The required pipeline servitudes from the Soweto Cluster tailings storage facilities to the Mogale plant site are being concluded and the study for the expansion of the Mogale plant to include a separate circuit for the treatment of hard rock ore from local surface material is being finalised. The treatment of the hard rock ore could potentially further increase the Mogale complex's production by 20 000 oz to 30 000 oz a year.
"The strong operational performance from our South African portfolio offset the slower-than-anticipated production ramp-up from Tennant. In the next financial year, we expect a much-improved performance from Tennant, with a full year of mining from the high-grade White Devil deposit, and a clear pathway to growing Australian gold production to 100 000 oz/y in the next three years. In addition, we anticipate increasing gold production from MTR in the next years, with the Soweto Cluster DFS now nearing completion," Loots stated in a release to Mining Weekly.
"Despite inflationary pressures, costs remain well managed. We're in a fortunate position in South Africa, with stable grid power to all our operations, and an accelerating renewable energy portfolio being rolled out to maintain this supply and reduce the impact of Eskom cost increases.
"In Australia, while diesel price increases have had an impact on production costs, sufficient storage facilities are now in place to minimise risks associated with potential fuel supply shortages. We are also investing in a large renewable energy solution for Tennant Mines, which will include battery storage, to reduce future operating costs.
"The conclusion of the Emmerson transaction will see Pan African consolidate the Tennant Creek goldfield, and we look forward to welcom...