Increase in Estimated Gold Deposit in Manica

22 June 2011

London — The London-registered mining company Pan African Resources on Wednesday announced that it has found a significant increase in gold at its mine in the central Mozambican province of Manica.

According to a release from Pan African Resources, the total mineral resource based on gold content has increased to 2.99 million ounces of gold, an increase of 16 per cent from an earlier estimate.

Pan African Resources’ chief executive Chief executive Jan Nelson commented that ‘the Manica project now represents a 3 million ounce deposit, which is significant as there are not many gold deposits in Africa in excess of 3 million ounces which outcrop on surface”.

Nelson pointed out that the company is focussing on getting the gold out of the ground so that it can continue paying a dividend.

He warned that other companies are “overpaying on new acquisitions at inflated metal prices to grow metal resources in the ground that potentially might never be brought to account”.

Pan African Resources operates in Mozambique and South Africa. It has three operational gold mines in South Africa producing around 100,000 ounces of gold a year.

The area licensed to the company in Manica is about four kilometres north of Manica town, and thus within easy reach of the Beira-Zimbabwe road and railway.

Shares in the company on the London Stock Exchange jumped by almost six per cent following the company’s statement.

The world price of gold currently stands at over 1,540 US dollars per ounce. The price is rising but is still considerably short of the record of 1,556.7 dollars an ounce set in May.

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