LONDON (ShareCast) - (ShareCast News) - Pan African Resources reported a fatal mining accident at the Evander 7 shaft complex on Monday, confirming it occurred on 15 February 2017.
The AIM-traded company said Velile Chaplin Kapa, an engineering assistant employed by the operation, sustained a fatal head injury when a section of the main shaft pump column failed whilst he was working in the shaft bottom area.

"Pan African's management and board express their sincere condolences to the family, friends and colleagues of Mr Kapa," it said in a statement.

The company also updated the market on the shaft refurbishment programme it announced for Evander's 7A shaft on 5 December.

In conjunction with the 7A shaft refurbishment programme, the company's management initiated a number of independent and internal engineering studies to assess the condition of Evander's underground mining infrastructure at both the Evander 7 and 8 shafts.

"These studies identified critical infrastructure issues requiring remedial action, to ensure safe and sustainable operation of these shafts," the board said.

"The nature of these refurbishments require a suspension of Evander's underground mining operations for a period of up to 55 days, during which critical infrastructure issues will be addressed.

"Evander's tailings and surface operations will be unaffected by the underground mining suspension."

Pan African said the cost of the shaft refurbishment programmes was expected to be approximately R40m, which will be funded from the company's existing banking facilities.

"In light of these recent developments, Pan African has revised its gold production guidance for the financial year ending 30 June 2017 from 195 000 ounces to approximately 181,000 ounces."

Pan African's interim results for the period ended 31 December will be released on 22 February, the board confirmed.

Further detail on the Evander underground refurbishment programme would be made available as part of that interim presentation.

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