Pan African Resources (LSE:PAF) has completed a definitive feasibility study for its Soweto Tailings Retreatment project, located adjacent to the Mogale Tailings Retreatment complex in Gauteng, South Africa.
The proposed project is designed to process 600,000 tonnes of tailings per month from the Soweto Cluster. Pan African expects the operation to produce between 35,000 and 40,000 ounces of gold annually over an estimated 15-year life.
If developed, the project is expected to increase peak production from the wider Mogale Tailings Retreatment complex to approximately 100,000 ounces of gold per year.
The feasibility study estimates capital expenditure of ZAR3.68 billion, following design changes that reduced projected capital requirements by approximately ZAR718 million.
Using a gold price assumption of US$3,550 per ounce, the study estimates a post-tax net present value of approximately ZAR1.85 billion and an internal rate of return of 29.55%.
Pan African said environmental approvals and permitting are progressing, with key authorisations expected during FY27. The company is targeting a final investment decision in December 2026.
The proposed operation would integrate with existing elution, carbon regeneration, electrowinning and smelting infrastructure at the Mogale complex rather than using a fully standalone processing configuration.
Plans also include a dedicated tailings storage facility designed to comply with the Global Industry Standard on Tailings Management. The project would involve the retreatment and subsequent rehabilitation of historical tailings areas on the West Rand.
More about Pan African Resources
Pan African Resources is a gold producer listed in London, Johannesburg and Australia, with mining and tailings retreatment operations in South Africa.
The group’s activities include recovering gold from surface tailings and underground deposits. Its operations include the Mogale Tailings Retreatment complex on South Africa’s West Rand.
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