SOURCE: Pan African Mining Corp.

November 06, 2007 03:01 ET

Pan African Mining Corp. Reports Progress on Its Mozambique Gold Projects

VANCOUVER, BC--(Marketwire - November 6, 2007) - PAN AFRICAN MINING CORP. (TSX-V: PAF) (FRANKFURT: P2A) (the "Company") reports progress on its four Mozambique gold projects during recent months. Each is the subject of a joint venture or similar agreement with a strategic partner, where the Company manages and funds exploration and development of the project in its earlier stages in order to earn a controlling interest. The Company has entered into these agreements in order to expand its presence in Mozambique, a country which is considered to be underexplored with strong geologic potential, while at the same time having a miner-friendly government and stable political environment. The Company's Mozambique gold projects are being managed by Pete Siegfried, P.Geol., a Qualified Person within the meaning of N.I. 43-101.

1. Cazula Project. The Company has now completed an initial reconnaissance diamond drilling program at the old Machinga Mine, located near Cazula in Tete Province. The program comprised 9 diamond drill holes aggregating 796 m and was carried out by Resource Drilling International Ltd. on behalf of the Joint Venture between the Company and Manica Minerals, Ltd. All holes intersected a shear zone while two holes encountered underground workings which had not been expected at depth. Although no visible gold was noted, significant alteration including chloritisation and associated pyritisation and silicification was noted in all holes surrounding the shear zone. This alteration extends between 3 m and 10 m into the footwall and between 10 m and 20 m into the hanging wall surrounding the shear and main quartz veins. The best intersection is represented by over 3 m (true width) of intense alteration at a depth of 56 m. Core was sampled under professional supervision and all samples have been prepared with appropriate duplicates and standards. Samples have been sent to Perth for analysis and assays are pending.

In addition to the core drilling at the old Machinga site, trenching, sampling and other ground exploration of the region have been completed during the past four months. As a result, a number of targets have been defined in the area and all are hosted in the Desaranhama Granite suite. Shear zones associated with chloritisation, quartz veining and gold mineralisation have been identified at a number of localities in the region and historical gold mining is recorded in the area as early as the 18th century. The old mines at Bumbe and Metosso are also included within the project area.

2. The Fingoe Project. Broad-based regional sampling and exploration have been carried out on the Fingoe Project in recent months, under a Joint Venture between the Company and Manica Minerals, Ltd. The project involves a number of licenses in Western Tete Province which extend over volcanic and volcanoclastic rocks of the late Mesoporoterozoic Fingoe Group. Planning of field work early in the year led to two detailed grids being mapped and soil sampled. Both areas were located by field follow-up of anomalous stream sediment samples collected at the end of 2006. The Tambika grid is hosted within granites with extensive tourmalinisation and a number of large, goethite-bearing quartz veins have been identified. The second area, the Ashwa grid (where a grab sample reported 25 ppm Au) was also magnetically surveyed. As the gold mineralisation is associated with 'demagnetized' shear zones crosscutting mafic to intermediate volcanic lithologies this should assist interpretation. Around the Ashwa workings a large malachite and goethite bearing quartz vein has been identified. Samples have now been submitted for analysis with results expected early in the New Year. Additional regional mapping was completed in the western parts (referred to as Aliyele) and as the area is burnt, good outcrop exposure assisted mapping. Summary reports are currently being prepared and sample results are pending.

3. African Eagle Fingoe Project. The Company entered into an agreement early this year with U.K. based African Eagle Resources plc, which holds a number of prospecting licenses located to the north and east of the town of Fingoe. These licenses are underlain by volcanics and volcanoclastics of the Fingoe Group, similar to the rocks being prospected under the Manica Minerals Joint Venture to the southwest and a logical extension to the prospecting program. Stream sediment sampling completed over these licenses has collected over 800 samples and was completed between May and July of this year. Results have been recently received and indicate the existence of a number of potentially sizeable gold anomalies. Almost 7% of the 'Muzeze' area's samples have statistically significant gold values. Some of the anomalous areas identified coincide with historical records. Field follow-up and initial rock sampling of these areas is planned early in 2008.

4. Braganza Project. A Joint Venture agreement has recently been signed between the Company and Bobcat Mining Limitada (Mozambique), covering exploration and development of the historic Braganza Mine situated at the eastern end of the Mutare-Penhalonga Greenstone Belt. Included in the regional project area are also the Diaz Pereirra, Dammp and Marianas historic minesites. Under the agreement, the Company can earn up to a 75% interest in the property by funding development in stages. This Archaean age greenstone belt has a long history of mining and gold production and after many years is today experiencing renewed interest. The old Monarch Mine as well as Fair Bride and Guy Fawkes are working towards a bankable feasibility study. The Braganza mine is located on a large north-south trending fault structure separating 'diorite' from mafic schists (metavolcanics). Exploration activities presently being carried out include detailed mapping and sampling, a ground magnetic survey of the area, channel sampling of old adits and the planning of a detailed IP survey.

According to Irwin Olian, CEO of the Company, "With the impending rains bringing the field work season to a close in Mozambique, we are delighted to report excellent progress this year on all our gold projects there. All planned activities and work programs were successfully carried out and a large amount of sampling has now been completed. In addition, we have now concluded a reconnaissance diamond drill program at the old Machinga site. As results become available, we plan to use the next four moths to review geological, geophysical and geochemical data so that next year's field season can be effectively planned. Mozambique is an exciting adjunct to our projects in Madagascar and provides us with additional opportunities for building shareholder value."

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