SOURCE: Pan African Mining Corp.

October 02, 2007 03:01 ET

Encouraging Results From Ground Geophysics Survey at Madagascar's Mountain of Gold Confirm Strong Potential for Large Deposits Along Trend

VANCOUVER, BC--(Marketwire - October 2, 2007) - PAN AFRICAN MINING CORP. (TSX-V: PAF) (FRANKFURT: P2A) (the "Company") is pleased to announce the successful outcome of an Induced Polarization survey recently conducted on its Mountain of Gold Project in Madagascar's central-west plateau. The Company's license in this region encompasses approximately 900 sq. km. situated 125 air miles west-southwest of the capital city of Antananarivo, in the provinces of Toliary and Antananarivo. The survey produced encouraging results outlining many large anomalies along trend bearing signatures similar to that found in the Dabolava East Zone, where numerous quartz veins bearing high-grade gold ranging from 4 g/t to 55 g/t Au have been encountered in Phase I and 2 core drilling to date.

The Company's focus during the current Phase 2 exploration and drilling has been to develop a better understanding of the complex structural model controlling location of the high grade gold bearing structures within the region in order to identify additional zones similar to Dabolava East. The Company retained Spectral Geophysics of Botswana to conduct an induced polarization (IP) geophysical survey as part of this program. The survey consisted of inducing an electrical charge into the ground to identify zones of silicification (resistivity) and disseminated sulphides (chargeability) often associated with the gold mineralization.

The resulting maps contribute greatly to the structural interpretation and understanding of the area. Anomalies generally indicate disseminated sulphides associated either with the gold mineralization itself or with the alteration halo accompanying the gold-bearing structures. They may also potentially reflect nickel, copper or other metals. In this regard, the Company has already found copper near-surface at the Western end of the Mountain of Gold trend.

So far, 94 line-km of survey have been completed, 28 line-km in the Dabolava-East area and 66 line-km in the Mountain of Gold/Andimaka area. The survey has been successful in outlining numerous coincident chargeability and resistivity anomalies (indicated in red and pink shades on the geophysics maps posted on our website at the following link):

http://www.panafrican.com/props_Dabolava_geology.asp

A number of these anomalies are highly pronounced and extend for hundreds of metres of strike-length. The grid areas are also being covered by a soil survey to discriminate the gold-bearing anomalies. Soil results are pending.

At Dabolava-East, the survey indicates that the known Dabolava-East mineralization revealed through drilling to date may only represent a small portion of the total mineralization present in the zone. Numerous larger geophysical targets of similar signature exist in the immediate surrounding area, potentially reflecting hidden deposits below surface. Initial drilling has been confined to targets with outcroppings or other surface manifestations.

Prospecting of the Mountain of Gold and Andimaka Zones has lead to the discovery and cataloguing of at least 58 lode (in place) artisanal mines. The workings are located along several subparallel structural trends extending for a strike-length of 3.75km so far. Of the panel samples taken from these various sites, nine returned assays between 1 and 5 g/t Au, and five between 5 and 8 g/t Au. The IP survey has yielded large anomalies in these Zones for follow-up drilling.

Given the encouraging results of the IP survey, it is the Company's intention to pursue the survey over several grass-root prospects previously identified through the regional stream sediment survey and followed-up by prospecting.

The Company is planning an aggressive diamond drilling campaign to test these newly identified targets as well as to continue the delineation of the Dabolava-East Zone using its own Atlas Copco Christensen CS14 skid mounted wireline drill.

The Mountain of Gold Project is being managed by Canadian Marthe Archambault, P.Geo., with total program oversight provided by Gregory B. Sparks, P. Eng., a Director of the Company. Both are Qualified Persons under NI 43-101. Sample preparation and assistance in establishing laboratory protocols and sample handling and assaying quality control are supervised by Ardito Martohardjono, Vice-President of Laboratory Services and a Director of the Company.

According to Irwin Olian, CEO of the Company, "We are delighted with the exceptional results from our recently concluded induced polarization study in the Dabolava region. They suggest strong potential for larger hidden deposits along trend throughout the region. We are presently developing drill targets on six new zones where large anomalies were outlined in the survey. It will be very exciting to commence drilling these new targets as well as to expand drilling at Dabolava East and the Mountain of Gold itself."

About Pan African Mining Corp.

The Company is an exploratory resource company with approximately 7,500 sq. km. of diversified mineral properties and 5,000 sq. km. of uranium properties in Madagascar. The Company is exploring these properties for uranium, gold, coal, precious stones, base metals and industrial commodities. In addition, the Company is exploring two large regions for gold and metals in Mozambique under agreements with other companies. It also has approximately 5500 sq. km. of diamond licenses in Botswana which it is presently exploring. Its operations in Madagascar are carried out through its operating subsidiary, PAM Madagascar Sarl, and its uranium activities are carried out through its 80% owned subsidiary PAM Atomique Sarl. The Company has offices in Vancouver, Canada and Antananarivo, Madagascar. More information about the Company is available at www.panafrican.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF
PAN AFRICAN MINING CORP.

"Irwin Olian"
Irwin Olian
Chairman & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.

Contact Information

  • For more information, contact:

    Irwin Olian
    President and CEO
    E-mail: Email Contact
    Phone: (604) 899-0100
    Fax: (604) 899-0200

    Tom Kinakin
    Corporate Communications - Vancouver
    Email: Email Contact
    Phone: (604) 899-0100
    Fax: (604) 899-0200

    Carrie Howes
    Corporate Communications
    Email: Email Contact
    Phone: London: +44 (0) 7780 602 788
    Phone: Germany: +49 (0) 1722 1234 47