SOURCE: Pan African Mining Corp.

January 10, 2008 11:41 ET

Pan African Mining Corp. Completes First Phase Geochemical Sampling on Key Botswana Diamond Licences; 113 Circular Magnetic Anomalies Targeted

VANCOUVER, BC--(Marketwire - January 10, 2008) - PAN AFRICAN MINING CORP. (the "Company") (TSX-V: PAF) is pleased to report that it has now completed the first phase of geochemical sampling on its Fairy Ring and Okavango Projects in the Northwest of Botswana. Each comprises three Prospecting Licences aggregating approximately 3000 sq. km, for a total area of some 6000 km2. The licences are held by its wholly owned subsidiary, PAM Botswana (Pty) Ltd.

In Botswana, which remains the world's leading producer of gem diamonds, the Northwest corner of the country is rapidly developing into a very active diamond exploration play, reflected by a surge of exploration activity and new Prospecting Licenses. The Company's Okavango licenses are adjacent to claims recently acquired by De Beers in Botswana, and that Company's Namibian affiliate (Namdeb) in neighbouring Namibia. This activity has been stimulated in part by an increasing consensus that the Congo craton, which hosts important economic diamond deposits, extends into northwest Botswana. Furthermore, this area is strategically located close to two major surface concentrations of diamonds and G10 garnets in the vicinity of Omatako and Tsumkwe, to the west in Namibia. It could therefore host the primary kimberlite sources of these two important unexplained kimberlite pathfinder anomalies.

Active exploration programmes by the Company are currently under way in both the Fairy Ring (Tsau region) and Okavango PL blocks. High resolution aeromagnetic data covering the ground has been filtered by Scott Hogg and Associates, geophysical contractors based in Toronto Canada. Both the Fairy Ring and Okavango project areas are characterized by numerous bulls-eye magnetic features, comparable to those associated with kimberlite pipes. In-house screening of the magnetic data has identified 75 targets for first phase follow-up in the Okavango block, and a further 38 in the Fairy Ring area.

The first phase of follow-up has entailed surface loam sampling over all of the targets. This technique has proven to be effective in the Kalahari environment, with surface concentrations of heavy minerals recovered over kimberlite pipes covered by overburden of the Tertiary Kalahari Formation. Depth to the base of the Kalahari in most of the company ground is believed to be significantly shallower than 100m. The sampling programme was carried out on behalf of the Company by Mr. Pitse Rababaaye of Mineral Services Consultancy, who has extensive experience managing field programmes in the Kalahari environment. Two samples, each separated into two size fractions (300-425um and 425-2000um) of 15kg were collected over each target. Sampling has been completed over both project areas, and all of the samples have been despatched to Mike Scott and Associates (MSA) in South Africa for the recovery and analysis of kimberlitic minerals. Results are expected later in this first quarter of 2008.

The second phase of exploration entails ground magnetic and gravity surveys over representative aeromagnetic targets, selected to cover a range in target size and magnetic characteristics. This programme, which is currently under way, is being carried out by Spectral Geophysics, and is scheduled to be completed shortly. The geophysical and sampling results will form the basis for identifying targets for drilling, planned for later in 2008.

In addition to these programmes, Drs. Margret McFarlane, the geomorphology consultant to the company, and Dr. Frank Eckhardt of the University of Cape Town, have commenced a programme to develop criteria for identifying kimberlites on the basis of their surface expressions. Both are internationally recognized geomorphologists, who have published numerous scientific papers on landforms of northwest Botswana. Overall project supervision is being provided by Dr. Andy Moore, Pr. Sci. Nat., a Qualified Person under N.I. 43-101.

According to Irwin Olian, CEO of the Company, "We are very excited by progress to date on our Botswana diamond prospects. Having now identified some 113 clustered targets in our Okavango and Fairy Ring Projects with geophysical signatures typical of kimberlites, we are working with all due speed to complete geochemical studies and other targeting work necessary to identify and prioritize drill targets."

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.

"Dr. Andy Moore"
Dr. Andy Moore
V.P. Exploration - Diamonds

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