LONDON (ShareCast) - Pan African Resources, the southern Africa-focused gold and platinum producer, has won approval from directors for the first phase of its Barberton Tailings Retreatment Project situated close to the Barberton Gold Mining Operations.

The firm anticipates that the project will increase the production profile at Barberton from 95,000 onces (oz) to 120,000oz per annum.

A capital cost estimate of £27m has been approved for phase one of the project in order to mine 1.2m tonnes per annum of gold tailings over six years, funded from internal cash flows. Full production of the project is expected to be achieved during August next year

The first phase is set to increase current production at Barberton by 26% to 120,000 oz per annum.

Chief Executive Officer Jan Nelson said: "This project will further increase the margins resulting in increased cash flow. This should ensure that Pan African can increase its dividend as well as pursue other accretive growth opportunities in the near term."

The share price rose 1.45% to 17.5p by 15:07.

NR

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