SOURCE: Pan African Mining Corp.

October 16, 2007 03:01 ET

Initial Core Drill Results From Pan African's Tranomaro Uranium Project Reveal High-Grade Intersections to Depth at Old French Mine 37, Including 5.0 M of 7.31 lbs/t U3O8

VANCOUVER, BC--(Marketwire - October 16, 2007) - PAN AFRICAN MINING CORP. (TSX-V: PAF) (FRANKFURT: P2A) (the "Company") is pleased to announce that it has received from ALS Laboratory Group in Vancouver initial assay results from its ongoing Phase 1 core drilling program on its Tranomaro Uranium property in the South of Madagascar. The Tranomaro Project comprises 206 squares, encompassing approximately 1287 sq.km. 10 holes have now been completed to a depth of approximately 70-130 m at old French Mine Number 37, the Company's initial target within the region. Results from the first five holes reported below show significant uraniferous mineralized zones encountered in all five holes and demonstrate the existence of high grade Uranium mineralization from surface outcroppings to levels far below the floor of the old open pit mined by the French.

The tables below show selected drill results from each of the first five holes completed during the current Phase 1 diamond drilling program, reflecting the most significant mineralized intervals encountered. The initial 5 drill holes were positioned at the western flank of old French Mine 37 and have been regularly spaced at 30m intervals in a N-S direction covering an extent of approximately 120m. This sequence of holes is to the South of shallow drill hole TR/M37D/B5-50E, previously reported on June 6, 2007, which yielded 17.2 metres of high-grade U mineralization grading 4,329 ppm U or 11.25 lbs/metric tonne U3O8.

TABLE OF SELECTED DRILL RESULTS

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                     Drill hole B0 40E
E652587.00, N7282665.00; Azimuth: 70 degrees, Inclination: 55 degrees
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          Depth (m)
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        From     To        Interval (m)    U (ppm)    U3O8 (lbs/t)
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         34      45             11            557        1.45
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         59      62              3            462        1.20
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         71      75              4            676        1.76
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         80      81              1            950        2.47
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                          Drill hole E0 35E
E652591.00, N7282665.00; Azimuth: 70 degrees, Inclination: 55 degrees
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          7      13              6          1,403        3.65
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         36      47              5            740        1.92
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         61      64              3            697        1.81
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         67      72              5            456        1.19
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         74      79              5          1,359        3.53
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                         Drill hole H0 35E
E652595.00, N7282641.00; Azimuth: 70 degrees, Inclination: 55 degrees
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         49      54              5          2,811        7.31
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                         Drill hole K0 20E
E652591.50, N7282625.60; Azimuth: 70 degrees, Inclination: 45 degrees
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         11      14              3            499        1.30
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         46      50              4          1,206        3.13
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         56      62              6          1,003        2.61
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                         Drill hole N0 10E
E652603.50, N7282606.85; Azimuth: 70 degrees, Inclination: 50 degrees
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         32      36              4            579        1.51
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         41      47              6            825        2.15
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         63      66              3            730        1.90
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         73      77              4            561        1.46
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         89      91              2            594        1.54
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Note:  U3O8 values are expressed in lbs per metric tonne
Intervals have not been resolved to true width

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The results to date are very promising as they confirm the existence of significant intersections of high grade Uranium mineralization in all the holes reported, ranging to a depth of almost 90 meters. Nearly all such holes contained multiple intersections as reported. 30 meter spacing between holes was designed to demonstrate continuity of the mineralized zone at old French mine 37. Results are pending from another 5 holes which have been drilled in a southward extension of the above drill holes. Preliminary radiometric data from such holes and surface exploration suggests further expansion of the zone to the South potentially for 500m or more corresponding with the extent of the N-S trending pyroxenite strata which form a sizable lens. Drilling will also be carried out on highly prospective zones to the North and West. Down-dip extent is so far unknown, but the drilling program is directed not only at determining the horizontal extent of the mineralization but also the depth. Preliminary study suggests primary uranium mineralization is likely to be encountered at depths below 80m from the surface.

Old Mine 37 lies within an area of 3km x 8km, where much of our field work has been focused. This deposit could one day potentially be at the centre of a large scale regional mining operation (with centralized treatment plant) comprising multiple open pits, which is the target of the Company's exploration and drilling activities in the Tranomaro area. Within the permits held by the Company, more than 100 old open pits and radiometric anomalies have been identified, which currently are subject of systematic exploration. Shallow scout drilling at old French Mines 52 and 52N, as well as old Mine 26, have already produced strong targets for our formal core drilling program at such sites.

The drill program now underway is being carried out by the Company on behalf of its Joint Venture with L'Office des Mines Nationales et des Industries Strategiques ("OMNIS"), a Malagasy State Agency. A heavy Atlas Copco CS-14 diamond drill rig is being utilized for the drill program. It is being furnished to the JV by OMNIS under a lease agreement develop targets for the current core drilling program. The program is being overseen by Dr. Reinhard Ramdohr, a Qualified Person within the meaning of N.I. 43-101. He is assisted by Marcel Rasolofonirina and a highly qualified team of Malagasy geo-techs. Overall program oversight is provided by Gregory B. Sparks, P.Eng., a Director of the Company and also a Qualified Person under N.I. 43-101.

Samples are analyzed by ALS Laboratory Group at its Vancouver, BC facility utilizing their Uranium Package Code #ME-MS61U, a 48 element near total digestion ICP procedure. Uranium over-limits for the foregoing procedure are re-analyzed using ALS procedure #U-XRF10. 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 early results now received from our Phase 1 drilling program, as they demonstrate multiple intervals of high-grade uranium mineralization in nearly all the holes reported, ranging from $100 - $200 in value per tonne and above. We are now focused on delineating a sizeable, essentially continuous body of uranium ore that will be amenable to commercial exploitation on a regional basis. We look forward to continued progress with the drill program."

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