Pan African has secured five exploration licences in north-eastern Sudan (the Block 12 concessions) – covering an area of almost 1 100km2.The Block 12 Concessions is located approximately 70km northwest of Port Sudan. Pan Africanwas awarded the licences by Sudan’s Ministry of Minerals for a period of three years, with the option to renew for a further two years.
Block 12 and the exploration programmeThe Block 12 concession areas were selected following a detailed due diligence analysis by Pan African’s technical team, which included site reconnaissance visits in Sudan and detailed desktop studies, which were used to inform the company’s exploration strategy. Ten initial target areas have been identified for further exploration, based on the size, extent of artisanal workings, presence of alluvial workings and associated tailings, prospectivity and upside potential. Block 12 is located on the same suture zone as the Hassai Gold Mine, which is the largest gold producer in Sudan, with historic production of some 0.1 Moz per year. On 31 December 2011, the previous operators of the Hassai Gold Mine reported Proven and Probable Mineral Reserves of 5.5Mt grading 2.3g/t, with Measured and Indicated Mineral Resources of 6.5Mt, grading 2.5g/t and Inferred Mineral Resources of 2.8Mt, grading 2.8g/t. The company’s concession areas are sparsely populated and arid, with rugged topography in places, varying between 100m and 1 750m above sea level. Block 12 has undergone limited modern exploration in the past, which consisted mainly of soil and grab samples, channel sampling and trenching on a few targets, and shallow drilling.
Exploration activities in Sudan are expected to commence in the second calendar quarter of 2022 to verify the results for the initial identified targets and endeavour to identify additional targets. The Group has embarked on a phased approach for its exploration work programmes, with the budgeted expenditure allocated for the first financial year estimated at US$2.5 million.