Pan African Resources has secured board approval to start construction of the Evander Tailings Retreatment project (ETRP) in South Africa.
The project will recover gold from the retreatment of gold tailings at Evander in South Africa's Mpumalanga province.
The total mineral resource at the site stands at 597,000oz, and a mineral reserve of 369,000oz.
The total capital expenditure budget required for the project is estimated as R200m (£11.2m) in order to help recover 2.16 million tonnes a year of gold tailings, over 14 years.
The completed project is expected to contribute 10,000oz a year to Evander's gold production, with a cash cost of about $800 an ounce.
The estimated net present value of the project is R170m and works will be funded through a gold loan of 15,700oz from the ABSA Bank.
Project commissioning is anticipated to start in January 2015, with production to commence in June 2015.
Pan African said the ETRP is a tailings retreatment project that will exploit historically generated gold tailings deposited on the Kinross TSF.
The TSF is located adjacent to the Kinross metallurgical processing plant and falls within the tenure of the Evander mining right.
Basil Read-Matomo has secured a contract to design, procure and build the ETRP while Fraser Alexander will construct the TSF and operate the re-mining operation.
Image: The total capital expenditure budget required for ETRP is estimated at £11.2m. Photo: courtesy of Pan African Resources.