Pan African has produced first platinum group metal (PGM) concentrate from its chrome tailings retreatment plant (CTRP) at the Phoenix platinum project in South Africa, two months ahead of schedule.

The firm is expecting to increase the production to a combined 4,500 ounces of PGMs in the third and fourth quarter of the financial year, which will end in June 2012.

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The CTRP will have an total planned production of 12,200 ounces of PGM’s, with 240,000 tons per annum at an average feed grade of 3.15 g/t, and will have project life of 17 years.

Pan African has also signed a agreement with Lonmin plc’s South African subsidiary Western Platinum for the sale of the PGM for a five-year period.

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